| Section                                                    | Subject                                                                              |   |
|------------------------------------------------------------|--------------------------------------------------------------------------------------|--------|
|                                                       |                                                                                 |   |
| Chapter      One – General                           |                                                                                 |
|                                                       |                                                                                 |   |
| 1.                                                         | Introduction                                                                         | 3      |
| 2.                                                         | Public      Company                                                                  | 4      |
| 3.                                                         | The      Company's Purpose                                                           | 4      |
| 4.                                                         | The      Company's Objects                                                           | 4      |
| 5.                                                         | Limitation      of Liability                                                         | 4      |
|                                                       |                                                                                 |   |
| Chapter      Two – The Company’s Share Capital |
|                                                       |                                                                                 |   |
| 6.                                                         | The      Share Capital                                                               | 5      |
| 7.                                                         | The      Issue of Shares and Other Securities                                        | 5      |
| 8.                                                         | Calls      for Payment                                                               | 6      |
| 9.                                                         | The      Company's Register of Shareholders and the Issue of Share      Certificates | 8      |
| 10.                                                        | Transfer      of the Company's Shares                                                | 9      |
| 11.                                                        | Bearer      Share Deed                                                               | 12     |
| 12.                                                        | Lien                                                                                 | 12     |
| 13.                                                        | Alterations      to the Share Capital                                                | 13     |
|                                                       |                                                                                 |   |
| Chapter      Three – General Meetings                |                                                                                 |
|                                                       |                                                                                 |   |
| 14.                                                        | The      Powers of the General Meeting                                               | 15     |
| 15.                                                        | Annual      and Special General Meetings and Class Meetings                          | 16     |
| 16.                                                        | Convening      of General Meetings                                                   | 17     |
| 17.                                                        | The      Agenda of the General Meeting                                               | 19     |

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| 18.                                                                                                 | The      Discussion at General Meetings                             | 19     |
|-----------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|--------|
| 19.                                                                                                 | Voting      by Shareholders                                         | 20     |
| 20.                                                                                                 | The      Appointment of a Proxy                                     | 23     |
|                                                                                                |                                                                |   |
|                                                                                                |                                                                |   |
| Chapter      Four – The Board of Directors                                                    |                                                                |
|                                                                                                |                                                                |   |
| 21.                                                                                                 | The      Board of Directors' Powers                                 | 25     |
| 22.                                                                                                 | The      Appointment of Directors and Termination of Their Office   | 26     |
| 23.                                                                                                 | The      Actions of the Directors                                   | 29     |
| 24.                                                                                                 | Board      of Directors' Committees                                 | 33     |
| 25.                                                                                                 | The      Chairman of the Board of Directors                         | 33     |
| 25A.                                                                                                | Approvals      for Ordinary Interested Party Transaction            | 34     |
|                                                                                                |                                                                |   |
| Chapter      Five – Officers of The Company, Who are Not Directors,    Auditor                |                                                                |
|                                                                                                |                                                                |   |
| 26.                                                                                                 | The      Chief Executive Officer and      General Manager           | 35     |
| 27.                                                                                                 | Secretary,      Internal Auditor and Other Officials in the Company | 37     |
| 28.                                                                                                 | Auditor                                                             | 38     |
|                                                                                                |                                                                |   |
| Chapter      Six – Safeguarding The Company’s Capital and The Distribution      Thereof |
|                                                                                                |                                                                |   |
| 29.                                                                                                 | Dividend      and Bonus Shares                                      | 39     |
|                                                                                                |                                                                |   |
|                                                                                                |                                                                |   |
|                                                                                                |                                                                |   |
| Chapter      Seven – Insurance, Indemnity and Exemption of Officers                           |
|                                                                                                |                                                                |   |
| 30.                                                                                                 | Insurance      of Officers                                          | 43     |
| 31.                                                                                                 | Indemnity      of Officers                                          | 43     |
| 32.                                                                                                 | Exemption      of Officers                                          | 45     |
| 33.                                                                                                 | Insurance,      Exemption and Indemnity – General             | 45     |
|                                                                                                |                                                                |   |
| Chapter      Eight – Winding Up and Reorganization of The Company                             |
|                                                                                                |                                                                |   |
| 34.                                                                                                 | Winding      Up                                                     | 45     |
| 35.                                                                                                 | The      Company's Reorganization                                   | 45     |
|                                                                                                |                                                                |   |
| Chapter      Nine – Miscellaneous                                                             |
|                                                                                                |                                                                |   |
| 36.                                                                                                 | Notice                                                              | 46     |
| 37.                                                                                                 | Amendment      to the article of association                        | 47     |

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| 1. | Introduction |
|----|--------------|

|   | 1.1 | In      these articles, each of the following expressions shall bear the meanings      set forth alongside them: |
|--------|-----|------------------------------------------------------------------------------------------------------------------|

|   | "shareholder" - someone      in whose favor a share is registered with a stock exchange member and that      share is entered in the Company's register of shareholders in the name of      a nominees company, or one who is entered as a shareholder in the      Company's register of shareholders; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "financial statements" -      the financial statements which the Company must prepare pursuant to the      law; |
|--------|-----------------------------------------------------------------------------------------------------------------|

|   | "law" - the provisions      of any law prevailing in the State ofIsrael; |
|--------|--------------------------------------------------------------------------|

|   | "director" - as defined      in section 1 of the Companies Law, including an alternate or empowered      representative; |
|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | "the Companies Law" -      the Companies Law, 5759-1999; |
|--------|----------------------------------------------------------|

|   | "the Securities Law" -      the Securities Law, 5728-1968; |
|--------|------------------------------------------------------------|

|   | "business day" - Sundays      to Thursdays, save for public holidays in the State of    Israel; |
|--------|-------------------------------------------------------------------------------------------------|

|   | "writing" - print and      any other form of printed words, including documents sent in writing by      facsimile, cable, telex, e-mail, computer or through any other electronic      media, which creates or enables the creation of a copy and/or printout of      the document; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "office" - the Company's      registered office; |
|--------|--------------------------------------------------|

|   | "securities" - shares,      debentures, capital notes, securities convertible into shares and rights      to any of the aforementioned, issued by the  Company; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "the Companies      Ordinance" - the Companies Ordinance (New Version),      5743-1983; |
|--------|-----------------------------------------------------------------------------------------|

|   | "ordinary majority" - a      majority of more than half the votes of the shareholders entitled to vote      and voting themselves, by proxy or through a voting instrument at a      general meeting. Abstentions shall not be included in the ordinary      majority count; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | "articles" - the      Company's articles as formulated herein or as altered, expressly or      pursuant to the law; |
|--------|---------------------------------------------------------------------------------------------------------------------|

|   | "the Companies Regulations"      - regulations promulgated by virtue of the authority granted      pursuant to the Companies Law; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | "Securities Regulations"      - regulations promulgated by virtue of the authority granted      pursuant to the Securities Law. |
|--------|---------------------------------------------------------------------------------------------------------------------------------|

|   | “Blue Square group” –      the Company and any other company which is consolidated in its financial      reports” |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1.2 | The      provisions of sections 3-10 of the Interpretation Law, 5741-1981 shall      also apply, mutatis mutandis, to the interpretation of the articles, if      there is no provision to the contrary or unless the context otherwise      admits. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Save      as provided in this section, every word and expression herein shall bear      the meaning designated to them in the Companies Law, and if none - the      meaning designated to them in the Companies Regulations, and if none - the      meaning designated to them in the Securities Law, and if none - the      meaning designated to them in the Securities Regulations, and if none -      the meaning designated to them in any other law, unless the context      otherwise admits. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Where      these articles refer to any legal provision and such provision is amended      or cancelled, the said provision shall be deemed valid and as part of the      articles, unless such is prohibited by thelaw. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | The      Company is a "public company" as defined in section 1 of the Companies      Law. |
|--------|-------------------------------------------------------------------------------------------|

| 3. | The      Company's Purpose |
|----|----------------------------|

|   | The      Company's purpose is to act pursuant to business considerations to make      profits; however, the Company may contribute a reasonable amount for an      appropriate object, even if the contribution is not within the framework      of the said businessconsiderations. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | The      Company's Objects |
|----|----------------------------|

|   | The      Company shall engage in any legalbusiness. |
|--------|-----------------------------------------------------|

| 5. | Limitation      of Liability |
|----|------------------------------|

----

|   | The      liability of the Company's shareholders is limited, each to payment of the      full amount which he undertook to pay for the shares allotted to him at      the time of the allotment. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | CHAPTER      TWO - THE COMPANY'S SHARE CAPITAL |
|--------|------------------------------------------------|

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

|   | 6.1 | The      Company's registered share capital is NIS 100,000,000 divided into      100,000,000 ordinary shares of NIS 1 par value each (hereinafter referred      to as “share", "ordinary share", "shares" or "ordinary shares", as the      case may be). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6.2 | Each      share vests a right to receive invitations, to participate in and vote at      the general meetings. A shareholder shall have one vote for each share      held by him. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6.3 | All      the shares rank pari passu in relation to the amounts of capital paid or      credited as paid on their nominal value, in connection with dividend, the      distribution of bonus shares and any other distribution, return of the      capital and participation in a distribution of the Company's surplus      assets on winding up. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | The      Issue of Shares and OtherSecurities |
|----|----------------------------------------------|

|   | 7.1 | The      Company's board of directors may issue shares and other securities of the      Company, up to the limit of the Company's registered share capital,      subject to any applicable law, provided that private placement of the      Company’s shares or convertibles of more than 10% of the outstanding share      capital of the Company shall require the approval of the shareholders of      the Company at a general meeting. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.2 | The      Company's board of directors may issue redeemable securities, with such      rights and on such conditions as the board of directors      prescribes. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.3 | Subject      to the provisions of the articles, the board of directors may allot shares      to any person with restrictions and conditions, for their nominal value or      with a premium, as it deems fit. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 7.4 | The      Company's board of directors may resolve to issue a series of debentures      within the framework of its authority to borrow on the Company's behalf,      and within the limits of such authority. The aforementioned does not      negate the authority of the general manager or someone authorized by him      to borrow on the Company's behalf, to issue debentures, promissory notes      and bills of exchange, within the limits prescribed by the board of      directors. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.5 | The      Company's existing shareholders shall not have a pre-emptive right,      preferred right or any other right to purchase the Company's securities.      The board of directors may, in its exclusive discretion, first offer the      Company's securities to the existing shareholders or to some of      them. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.6 | The      Company may pay any person a commission (including underwriting fees) in      consideration for the underwriting, marketing or distribution of the      Company's securities, conditionally or unconditionally, on such terms and      conditions as the board of directors prescribes. Such payments may be made      in cash or securities of the Company, or in part by one way and in part by      another. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | Calls      for Payment |
|----|------------------------|

|   | 8.1 | If,      pursuant to the conditions of the allotment of the shares, there is no      fixed date for the payment of any part of the price payable for them, the      board of directors may from time to time make calls upon the shareholders      in respect of the monies not yet paid in relation to the shares held by      them (hereinafter referred to as “calls" or "call", as the case may      be). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      call shall determine the date by which the amount specified therein must      be paid, together with interest, linkage and the expenses incurred as a      result of the non-payment, at the rates and for the amounts prescribed by      the board of directors. Such date shall not be less than 30 days from the      date of the call. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      call shall also specify that in the event of non-payment by the date fixed      as required, the shares in relation to which the call is being made are      likely to be forfeited. If a shareholder does not comply with the call,      any share in relation to which the said call has been made may be      forfeited at any time thereafter, pursuant to a resolution of the board of      directors. Share forfeitures shall include all the dividends on such      shares that have not been paid prior to the forfeiture, even if      declared. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 8.2 | Any      amount which pursuant to a share's allotment conditions is payable at the      time of the allotment or at a fixed time, on account of the amount of the      share or for premium, shall be deemed in respect of the articles a call      duly made and notified, and the payment date is the date fixed for      payment. In the event of non-payment, all the sections of the articles      dealing with the payment of interest, linkage and expenses, the forfeiture      of shares and the like and all the other sections hereof relating to the      matter shall apply as if the said amount had been duly called and as if a      notice was given as determinedabove. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.3 | The      board of directors may distinguish between the shareholders in relation to      the amounts of the calls and/or their payment  times. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.4 | Joint      holders of a share shall be jointly and severally liable for payment of      the calls made on such share. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------|

|   | 8.5 | Any      payment on account of a share shall first be attributed on account of the      nominal value and only thereafter on account of the premium in respect of      each share. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.6 | A      call may be cancelled or postponed to another date, as resolved by the      board of directors. The board of directors may waive all or any of the      interest, linkage and expenses. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.7 | The      board of directors may accept from a shareholder willing to pay in      advance, payments on account of his shares in addition to amounts actually      called and the board of directors may pay such shareholder interest on the      amounts paid in advance as aforesaid, or on such part thereof as exceeds      the amount called on account of the shares, in relation to which the      payment was made in advance, or come to any other arrangement with him      which is such as to compensate him for the advance  payment. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.8 | A      shareholder shall not be entitled to his rights as shareholder, including      to a dividend, unless he has paid all the amounts detailed in the calls      made on him, together with interest, linkage and expenses, if any, unless      otherwise prescribed by the board ofdirectors. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.9 | The      board of directors may sell, re-allot or otherwise transfer any share      forfeited in such manner as it resolves, including without consideration,      provided that the Company is paid the full nominal value in respect of      such share. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 8.10 | The      board of directors may, at any time prior to selling or otherwise      transferring the forfeited share, cancel the forfeiture on such conditions      as it resolves. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.11 | A      shareholder whose shares have been forfeited shall, notwithstanding the      forfeiture, be liable to pay the Company for all the calls not paid in      relation to such shares prior to the forfeiture, together with interest,      linkage and expenses up to the date of the payment as though the shares      had not been forfeited, and to comply with all the other claims and      demands enforceable by the Company in relation to the shares up to the      date of the forfeiture, without a deduction or discount for the value of      the shares on the date of the forfeiture. His obligation shall only come      to an end after the Company has received the full payment specified at the      time of the issue of the shares. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.12 | The      board of directors may collect the calls not paid in respect of the shares      forfeited or some of them, as it deems fit, but shall not be obliged to do      so. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.13 | Share      forfeitures shall result, at the time of the forfeiture, in the      cancellation of any right in the Company and any claim or demand vis-a-vis      it in relation to the share, save for those rights and obligations which      are excluded from this rule pursuant to these articles or which the law      grants or imposes on the formershareholder. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | The      Company's Register of Shareholders and the Issue of Share      Certificates |
|----|--------------------------------------------------------------------------------------|

|   | 9.1 | The      Company shall keep a register of shareholders and a register of material      shareholders, managed by the Company’s  secretary. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.2 | The      board of directors may close the register of shareholders for an overall      period of up to 30 days each year. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------|

|   | 9.3 | A      shareholder, who was entered as a shareholder in the Company’s register of      shareholders, is entitled to receive from the Company, without payment,      within two months of the allotment or registration of the transfer (unless      the issue conditions specify another period of time) one certificate or a      number of certificates, in accordance with the Company's resolution, in      respect of all the shares of a particular class registered in his name,      which shall specify the number of shares and any other detail which in the      board of directors' opinion is important. In the case of a jointly held      share, the Company shall not be liable to issue more than one certificate      to all the joint shareholders, and the delivery of such a certificate to      one of the joint shareholders shall be deemed delivery to all of      them. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 9.4 | Every      certificate shall bear the Company's seal or stamp or its printed name and      shall be signed by one director and the Company's secretary, or by two      directors or by any other person appointed by the board of directors for      such object. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.5 | The      Company may issue a new certificate instead of a certificate which was      issued and lost, spoilt or defaced, in reliance upon such proof and      guarantees as the Company requires, and after payment of the amount      prescribed by the board of directors and the Company may, in accordance      with a resolution of the board of directors, replace existing certificates      with new certificates without payment, on such conditions that the board      of directors shall prescribe. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.6 | Where      two or more persons are registered as joint holders of a share, each of      them may confirm the receipt of a dividend or other payments in connection      with such share and his confirmation shall bind all the joint      shareholders. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.7 | The      Company shall not have to recognize any person as holding a share on      trust, and shall not be bound or compelled to recognize any equitable,      contingent, future or partial interest in any share, or any other interest      in connection with a share, save for the absolute right of the registered      holder in respect of any share, except in reliance upon a judicial      decision or pursuant to the requirements of any  law. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | Transfer      of the Company's Shares |
|-----|---------------------------------------|

|   | 10.1 | The      Company's shares may be transferred. A share transfer shall not be      registered unless a share transfer deed (hereinafter referred to as “share      transfer deed") is submitted to the Company (or its transfer agent). The      share transfer deed shall be drawn up in the following manner or in a      manner as similar thereto as possible or in another manner approved by the      board of directors. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   |
|--------|--------|

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

|   | I      ___________________, ID/Company No. __________, of ___________________      (hereinafter referred to as “the transferor") transfer to      ___________________, ID/Company No. __________, of ___________________      (hereinafter referred to as “the transferee"), in consideration for NIS      __________, __________ ordinary shares of NIS __________ par value each,      which are marked with the numbers __________ to __________ inclusive, of      ___________________ Ltd. (hereinafter referred to as “the Company"), to be      held by the transferee, administrators of his estate, guardians and      successors and assigns on the same terms and conditions pursuant to which      I held these shares at the time of signing this deed, and I the transferee      agree to accept the aforementioned shares on the terms and conditions      mentioned above and subject to the Company's articles, as shall be from      time to time. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As      duly witnessed on___________________. |
|--------|-----------------------------------------------|

|  | The Transferor      - | The Transferee      - |
|--|-----------------------|-----------------------|

|  | Name: | Name: |
|--|-------|-------|

|  | Signature: | Signature: |
|--|------------|------------|

|  | Witness to      Transferor's Signature - | Witness      to |
|--|------------------------------------------|-----------------|

|  |   | Transferee's      Signature- |
|--|--------|------------------------------|

|   | Name:                                             , Adv. | Name: | ,      Adv. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|-------------|

|  | License      No. | License      No. |
|--|------------------|------------------|

|  | Signature: | Signature: |
|--|------------|------------|

|   | 10.2 | A      transfer of shares which are not fully paid, or of shares on which the      Company has a lien or encumbrance, shall not be valid, unless approved by      the board of directors which may, in its absolute discretion and without      giving any grounds therefor, refuse to register such a      transfer. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      board of directors may refuse a transfer of shares as aforesaid and may      make such a transfer conditional upon the transferee undertaking, to the      extent and in the manner prescribed by the board of directors, to perform      the transferor's obligations in respect of the shares or the obligations      in respect of which the Company has a lien or an encumbrance on the      shares. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 10.3 | The      transfer of part of a share shall not bevalid. |
|--------|------|---------------------------------------------------------|

|   | 10.4 | The      transferor shall continue to be considered the holder of the shares being      transferred until the transferee's name is entered in the Company's      register of shareholders. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.5 | The      share transfer deed shall be submitted to the office for registration      together with the certificates in which the shares to be transferred are      registered (if issued) and any other proof, which the Company requires      regarding the transferor's proprietary right in the shares or his right to      transfer them. The share transfer deeds shall remain with the Company. The      Company shall not be bound to keep share transfer deeds and share      certificates, which have beencancelled. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.6 | A      joint shareholder wishing to transfer his right in a share, who is not in      possession of the share certificate, shall not be obligated to attach the      share certificate to the share transfer deeds, provided that in the share      transfer deeds it shall state that the transferor does not hold the share      certificate relating to the share in which his right is being transferred      and that the share that is being transferred is jointly held, together      with details of the other jointshareholders. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.7 | The      Company may demand the payment of a fee for registering the transfer of      such amount as prescribed by the board of directors from time to      time. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.8 | Upon      the death of a shareholder of the Company, the Company shall recognize the      guardians, administrators of the estate or executors of the will, or in      the absence of any of the aforementioned, the shareholder's legal heirs,      as the only persons having a right to his shares, after entitlement      thereto is proved as prescribed by the board of  directors. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.9 | Where      the deceased shareholder held shares jointly with others, the Company      shall recognize the surviving joint shareholders as holders of the said      shares, unless all the joint shareholders have notified the Company in      writing prior to the death of one of them of their wish that the      provisions of this article shall not apply; however, such shall not exempt      the estate of a joint shareholder from any obligation by which the joint      shareholders would have been bound were it not for his    death. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.10 | A      person acquiring a right to shares in consequence of his position as      guardian, administrator of the estate, executor of the will, heir,      receiver, liquidator or trustee on bankruptcy of a shareholder or pursuant      to the provisions of any other law may, on furnishing proof of his right,      as required by the board of directors, be registered as the holder of the      shares or transfer them to another person, subject to the provisions of      the articles in relation totransfer. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 10.11 | A      person acquiring a right to a share as a result of their transferal shall      be entitled to dividend and the other rights in respect of the share and      may accept and give receipts for dividend or other payments payable in      connection with the share, but shall not be entitled to receive notices of      the Company's general meetings and to participate therein or vote thereat      in connection with such share or exercise any right vested by the share,      save for the aforementioned, unless he has been entered into the      shareholders’ register. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | Bearer      Share Deed |
|-----|------------------------|

|   | The      Company shall not issue bearer share deeds from which it derives that the      holders thereof have a right in the shares specified    therein. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12. | Lien |
|-----|------|

|   | 12.1 | The      Company shall have a first and paramount charge and right of lien on all      the shares not paid up in full which are registered in the name of any      shareholder, and on the proceeds from the sale thereof, in relation to      monies (whether currently payable or not) called or payable at a fixed      time in respect of such shares. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Company shall also have a first and paramount charge over all the shares      (other than fully paid shares) registered in the name of any shareholder      to secure monies due from him or from his property, whether such debts are      due from him alone or together withothers. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      said charge shall also apply to dividends declared from time to time on      such shares. |
|--------|----------------------------------------------------------------------------------------------------|

|   | 12.2 | In      order to realize the charge and the lien, the board of directors may sell      the shares to which the charge applies, or any part of them, in such      manner as it deems fit. No sale as aforesaid shall be effected until after      the date specified for payment and after written notice has been given to      the shareholder of the Company's intention to sell the shares, and the      sums are not paid within 14 days of suchnotice. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.3 | The      net proceeds from any such sale, after payment of the sale expenses, shall      be applied towards the discharge of the debts or obligations of such      shareholder and the balance (if any) shall be paid to  him. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 12.4 | If      shares are sold in order to realize a charge or a lien through prima facie      use of the powers given above, the board of directors may enter these      shares in the shareholders’ register in the purchaser's name, and the      purchaser shall not be obligated to check the legality of the acts or the      nature of the application of the purchase money. After the said shares are      registered in the purchaser's name in the shareholders’ register, no      person shall be entitled to appeal the validity of the    sale. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13. | Alterations      to the Share Capital |
|-----|---------------------------------------|

|   | The      general meeting may at any time resolve to do any of the following      acts: |
|--------|----------------------------------------------------------------------------------------|

|   | 13.1 | Increasing the      registered share capital |
|--------|------|----------------------------------------------|

|   | To      increase the Company's registered share capital, whether or not all the      shares registered at such time have been issued. The increased capital      shall be divided into shares with ordinary, preferred, deferred or other      special rights (subject to the special rights attached to an existing      class of shares) or shall be subject to such conditions and restrictions      in relation to dividend, return of capital, voting or other conditions as      directed by the general meeting in its resolution to increase the      registered capital. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.2 | Classes of      shares |
|--------|------|------------------------|

|   | To      divide the share capital into different classes of shares and to determine      and alter the rights attached to each class of shares, on the following      conditions - |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | for      as long as the conditions of issue of shares do not otherwise provide, the      rights attached to any class of shares may be altered after a resolution      is passed by general meetings of the holders of each class of shares      separately or after obtaining the written consent of the holders of all      the classes of shares; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      rights vested in the holders of shares of a particular class shall not be      deemed to have been altered by the creation or issue of other shares with      identical rights or alteration of the rights attached to existing shares,      unless the issue conditions of such shares otherwise    provide. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.3 | Consolidation of the      share capital |
|--------|------|-----------------------------------------|

----

|   | To      consolidate and divide any or all of its share capital into shares of a      nominal value greater than that specified in the articles. In the event      that there are shareholders who are left with fractions of shares as a      result of the consolidation, the board of directors may, if it receives      the approval of the general meeting, in a resolution on the consolidation      of the capital as aforesaid: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | to      sell all the fractions and for such object appoint a trustee in whose name      the share certificates containing the fractions shall be issued, who shall      sell them, and the consideration received less commissions and expenses      shall be distributed amongst those entitled. The board of directors is      permitted to resolve that shareholders entitled to a consideration that is      less than the amount prescribed by it, shall not receive any consideration      from a sale of the fractions as aforesaid, and their share of the      consideration shall be distributed amongst the shareholders entitled to a      consideration exceeding the amount to be prescribed, pro rata to the      consideration to which they areentitled; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | to      allot to all the shareholders left with fractions of shares as a result of      the consolidation and division, fully paid shares of the class of shares      which existed prior to the consolidation in such number the consolidation      of which with the fraction shall suffice for one whole consolidated share,      and an allotment as aforesaid shall be deemed valid just before the      consolidation; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | to      determine that shareholders shall not be entitled to receive a      consolidated share in respect of a fraction of a consolidated share      deriving from the consolidation of half or less of the number of shares      the consolidation of which creates one consolidated share, and shall be      entitled to receive a consolidated share in respect of a fraction of a      consolidated share deriving from the consolidation of more than half the      number of shares, the consolidation of which created one consolidated      share. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In      the event that an act pursuant to sub-sections (b) or (c) above, obliges      the issue of additional shares, the payment thereof shall be effected in      the manner in which bonus shares may be paid. Consolidation and division      as aforesaid shall not be deemed alteration of the rights attached to the      shares the subject of the consolidation and  division. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 13.4 | Cancellation of      unallotted share capital |
|--------|------|-----------------------------------------------|

|   | To      cancel registered share capital, which has not yet been allotted, provided      that the Company has not undertaken to allot such  shares. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.5 | Division of the share      capital |
|--------|------|------------------------------------|

|   | To      divide the Company's share capital or any part thereof into shares of a      nominal value smaller than that specified in the articles by a division of      all or any of the Company's shares at suchtime. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | CHAPTER      THREE - GENERAL MEETINGS |
|--------|---------------------------------------|

| 14. | The      Powers of the GeneralMeeting |
|-----|---------------------------------------|

|   | 14.1 | Matters within the      general meeting's authority |
|--------|------|-----------------------------------------------------|

|   | The      general meeting shall pass Company resolutions on the following      matters: |
|--------|----------------------------------------------------------------------------------------|

|   | (a) | alterations      to the articles. |
|--------|-----|-----------------------------------|

|   | (b) | the      exercise of the board of directors' powers, provided that the general      meeting has prescribed that the board of directors is unable to exercise      its powers and that the exercise of any of its powers is essential for      proper management of the Company; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the      appointment or renewal of the appointment of the auditor, the termination      of his office or the non-renewal thereof and the determination of his      remuneration in accordance with the provisions of articles 15.1 (b) and 29      below; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the      appointment of directors, including external directors, and the      termination of their office in accordance with article 23      below; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | the      approval of acts and transactions requiring the general meeting's approval      in accordance with the provisions of sections 255 and 268 - 275 of the      Companies Law; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | alterations      to the Company's share capital, in accordance with the provisions of      article 13 above; |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

----

|   | (g) | a      merger as provided in section 320 of the Companies  Law; |
|--------|-----|-----------------------------------------------------------------|

|   | (h) | any      resolution which must be passed pursuant to the law or these articles by a      resolution of the general meeting. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------|

|   | 14.2 | The general meeting's      authority to transfer powers between the  organs |
|--------|------|-----------------------------------------------------------------------------|

|   | The      general meeting may assume powers given to another organ, and the general      meeting may transfer powers given to the general manager to the authority      of the board of directors. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      assumption and/or transfer of powers as aforesaid shall be for a      particular matter or for a particular period of time, all as provided by      the resolution of the meeting. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15. | Annual      and Special General Meetings and Class  Meetings |
|-----|--------------------------------------------------------------|

|   | 15.1 | Annual      meetings |
|--------|------|----------------------|

|   | The      annual general meeting shall be held every year and no later than the end      of 15 months from the last annual general meeting. These general meetings      shall be called "annual meetings". The meeting shall be held at the      Company's registered offices, unless the board of directors otherwise      prescribes. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | The      annual meeting shall be convened in order to pass resolutions on the      following matters: |
|--------|-----|-------------------------------------------------------------------------------------------------------|

|   | (1) | the      appointment of directors and the termination of their office in accordance      with article 23 below; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (2) | the      appointment of the auditor or the renewal of his  office. |
|--------|-----|--------------------------------------------------------------------|

|   | (3) | discuss      the financial statements and the board of directors' report submitted by      the Company pursuant to the Securities Regulations as of 31st December of      the calendar year preceding the year in which the general meeting is being      held; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | Similarly,      the annual meeting shall include a discussion and/or resolution on any      other matter placed on the agenda. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------|

|   | 15.2 | Special      meetings |
|--------|------|-----------------------|

|   | General      meetings of the Company, which are not convened pursuant to article 15.1      above, shall be called "specialmeetings". |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | A      special meeting shall only discuss and resolve on all the matters not      discussed at the annual meeting which are detailed on the agenda of the      special meeting. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 15.3 | Class      meetings |
|--------|------|---------------------|

|   | The      provisions of these articles relating to general meetings shall apply,      mutatis mutants, to class meetings of the  Company. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|

| 16. | Convening      of General Meetings |
|-----|------------------------------------|

|   | 16.1 | Convening the annual      meeting |
|--------|------|-----------------------------------|

|   | The      board of directors shall convene annual meetings in accordance with the      provisions of article 15.1 above. |
|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | 16.2 | Convening a special      meeting |
|--------|------|----------------------------------|

|   | The      board of directors shall convene a special meeting pursuant to its      resolution; however, it shall be obliged to convene such a meeting if      requested by one of the following: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | two      directors or one quarter of the directors holding office, whichever is the      lower; |
|--------|-----|-------------------------------------------------------------------------------------------------|

|   | (b) | one      or more shareholders holding at least 5% of the Company's issued      capital. |
|--------|-----|-----------------------------------------------------------------------------------------|

|   | If      the board of directors does not convene a general meeting as      aforementioned in subsection 16.2, the person requesting the meeting may,      and where shareholders are involved - also some of them, who have more      than half the voting rights in the Company, convene the meeting      themselves, provided that it is not held more than three months after the      date the requisition was made, and it shall be convened, wherever      possible, in the same manner in which meetings are convened by the board      of directors. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|          | Where      a general meeting is convened as aforesaid, the Company shall cover the      reasonable expenses incurred by the person requesting  it. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 16.3 | The time for calling a      special meeting pursuant to arequest |
|--------|------|------------------------------------------------------------------|

|   | Where      the board of directors is requested to call a special meeting, as provided      in section 16.2 above, it shall do so within 21 days of the request being      submitted, for a date that shall not be later than 35 days from the date      on which the notice of the special meeting is  published. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 16.4 | Notice of a general      meeting |
|--------|------|----------------------------------|

|   | 16.4.1 | Subject      to the provisions of the law and as long as the law requires, notice of a      general meeting shall be published in two Hebrew-language daily newspapers      in Israel, at least 14 days prior to the meeting, and where the agenda      includes matters which may be voted on through voting instruments, at      least 21 days prior to the meeting. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Save      for giving notice as aforesaid, the Company shall not give the      shareholders notice of the generalmeeting. |
|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | 16.4.2 | Notwithstanding      the aforegoing, the board of directors may determine that notice of a      particular general meeting shall be sent to every shareholder entered in      the register of shareholders and the date of sending notice as      aforesaid. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 16.4.3 | The      notice of the general meeting shall specify the type of meeting, the place      and time at which the meeting shall be convened, its agenda, a summary of      the proposed resolutions, the majority required to pass the resolutions,      the date determining the shareholders' entitlement to participate in and      vote at the general meeting in accordance with section 182 of the      Companies Law as long as these details required by law and any other      detail required pursuant to thelaw. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 17. | The      General Meeting's Agenda |
|-----|-----------------------------------|

|   | 17.1 | The      general meeting's agenda shall be prescribed by the board of directors and      may also include matters in respect of which a special meeting is required      as provided in article 15.2 above, and matters obliged in accordance with      the provisions of article 17.2below. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 17.2 | One      or more shareholders holding 1% of the Company's voting rights may ask the      board of directors to include a matter on the agenda of a general meeting      to be held in the future. The board of directors shall include such a      matter on the agenda provided that in its discretion such matter is      suitable for discussion at a general meeting of the    Company. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 17.3 | The      general meeting may only pass resolutions on the matters on its      agenda. |
|--------|------|---------------------------------------------------------------------------------------|

|   | 17.4 | So      long as not otherwise obliged by the law, the general meeting may pass or      defeat a proposed resolution that was on the general meeting's agenda the      text or a summary description of the main points of which was published by      the Company, including with changes; however, it may not pass a resolution      materially different from the proposed  resolution. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18. | The      Discussion at GeneralMeetings |
|-----|----------------------------------------|

|   | 18.1 | Entitlement to      participate in a vote |
|--------|------|-------------------------------------------|

|   | Subject      to the provisions of section 182(c) of the Companies Law and the Companies      Regulations, the shareholders who are entitled to participate in and vote      at a general meeting shall be the shareholders on the date prescribed in      the resolution to call the generalmeeting. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 18.2 | Quorum |
|--------|------|--------|

|   | No      discussion may be commenced at a general meeting unless a quorum is      present at the time of a discussion. Two shareholders present in person or      by proxy, or who has sent the Company a voting instrument indicating the      way in which he is voting, and holding or representing at least 50% of the      voting rights in the Company, shall constitute a  quorum. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A      shareholder or his proxy, who is also acting as the proxy of other      shareholders, shall be considered two or more shareholders, in accordance      with the number of shareholders represented by  him. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 18.3 | The general meeting's      adjournment in the absence of aquorum |
|--------|------|------------------------------------------------------------------|

|   | If      no quorum is present within half an hour of the time fixed for the      meeting, the meeting shall be adjourned to the same day in the next week,      following the meeting, to the same time and place, without further notice      being given thereof, or to such other date, time and place as prescribed      by the board of directors in notice to the shareholders, and the adjourned      meeting shall discuss those matters for which the first meeting was      called. If no quorum is present at the adjourned meeting, one shareholder,      at least, present in person or by proxy, shall constitute a quorum,      subject to the provisions of section 79 of the Companies    Law. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 18.4 | The general meeting's      chairman |
|--------|------|-------------------------------------|

|   | The      board of directors' chairman (if appointed) shall chair the general      meeting. In the absence of a chairman, or if he does not appear at the      meeting within 15 minutes of the time fixed therefor, those shareholders      present at the meeting shall elect one of the Company's directors as      chairman, or if no director is present, they shall elect one of the      shareholders present to chair themeeting. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      meeting's chairman shall not have an additional or casting      vote. |
|--------|--------------------------------------------------------------------------------|

|   | 18.5 | Adjourned      meeting |
|--------|------|------------------------|

|   | With      the agreement of a meeting at which a quorum is present, the chairman may,      and on the demand of the meeting he must, adjourn the meeting from time to      time and from place to place, as the meeting resolves (hereinafter in this      article referred to as “adjourned meeting"). If a meeting is adjourned for      more than 21 days, notice of the adjourned meeting shall be given in the      same way in which notice is given of a first meeting. Save for the a      foregoing, a shareholder shall not be entitled to receive notice of an      adjournment or of the matters to be discussed at an adjourned meeting. The      adjourned meeting shall not discuss any matters save for those which could      have been discussed at the meeting at which the adjournment was resolved      upon. The provisions of articles 17.1 and 17.2 hereof shall apply to an      adjourned meeting as mentioned in thisarticle. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19. | Voting      by Shareholders |
|-----|-----------------------------|

|   | 19.1 | Passing a      resolution |
|--------|------|---------------------------|

----

|   | A      resolution put to the vote at any general meeting shall be passed if it      acquires an ordinary majority or any other majority especially prescribed      for it pursuant to the law or thesearticles. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | If      the votes are tied, the resolution shall be deemed to have been      defeated. |
|--------|----------------------------------------------------------------------------------------|

|   | 19.2 | Examining the      majority |
|--------|------|-----------------------------|

|   | 19.2.1 | The      majority shall be examined through a poll, each shareholder being entitled      at the time of voting to one vote in respect of each share held by him      which has been fully paid or the calls in respect of which have been fully      paid. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 19.2.2 | The      chairman's declaration that a resolution at the general meeting has been      passed or defeated, unanimously or by a particular majority, shall      constitute prima facie evidence of that stated  therein. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 19.3 | Right to participate      and vote |
|--------|------|------------------------------------|

|   | A      shareholder shall not be entitled to participate in and vote at any      general meeting or to be counted amongst those present so long as he owes      the Company any payment called in respect of the shares held by him,      unless the shares' issue conditions otherwise  provide. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 19.4 | Confirmation of      title |
|--------|------|----------------------------|

|   | A      shareholder in whose favor a share is registered with a stock exchange      member and such share is included amongst the shares entered in the      register of shareholders in the name of a registration company may not      participate in and vote at a general meeting unless he has given the      Company confirmation of title, as required under the  law. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 19.5 | Personal interest in      resolutions |
|--------|------|---------------------------------------|

----

|   | A      shareholder wishing to vote on a resolution the majority required to pass      which includes the votes of those who do not have a personal interest      shall notify the Company before the vote on the said resolution commences,      or if voting through a proxy or voting instrument within the framework      thereof, whether he does or does not have a personal interest in the      resolution. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A      shareholder who has not given any notice as aforesaid shall be deemed to      have notified the Company that he does not have a personal interest in the      resolution. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 19.6 | Disqualification of      voting instruments |
|--------|------|---------------------------------------------|

|   | Subject      to the provisions of the law, the Company's secretary may, in his      discretion, disqualify voting instruments or proxy appointment instruments      in the following cases: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | there      is a reasonable apprehension that they are forged or were given by virtue      of shares in respect of which other proxy appointment instruments or      voting instruments were given; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | in      respect of voting instruments - |
|--------|-----|-----------------------------------------|

|   | (1) | if      more then one choice for a particular resolution is marked      therein; |
|--------|-----|----------------------------------------------------------------------------------|

|   | (2) | if      in respect of resolutions the majority required to pass which includes the      votes of persons who do not have a personal interest in the approval, it      is not marked whether or not there is a personal interest as      aforesaid. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 19.7 | Voting by a legally      incapacitated person |
|--------|------|-----------------------------------------------|

|   | A      legally incapacitated person may only vote by a trustee, natural guardian      or other legal guardian. These persons may vote in person or by      proxy. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 19.8 | Voting by joint      shareholders |
|--------|------|-----------------------------------|

|   | Where      two or more shareholders are joint holders of a share, one of them shall      vote, himself, by proxy or through a voting instrument. If more than one      joint shareholder wishes to participate in the vote, only the first joint      shareholder may vote. For such object, the first joint shareholder shall      be the person whose name is entered first in the register of      shareholders. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 19.9 | Minutes of the general      meeting |
|--------|------|-------------------------------------|

----

|   | The      general meeting's chairman shall procure that minutes are properly kept of      every general meeting which shallinclude: |
|--------|------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the      name of the shareholder or proxy and the number of shares held by      him; |
|--------|-----|--------------------------------------------------------------------------------------|

|   | (b) | the      main points of the discussion, all the resolutions passed or defeated at      the general meeting and if passed - by what  majority. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | 19.10 | A      defect in convening or conducting the general meeting, including a defect      deriving from the non-fulfillment of any provision or condition laid down      in the Law or the Company's articles, including with regard to the manner      of convening or conducting the general meeting, shall not disqualify any      resolution passed at the general meeting and shall not affect the      discussions which took placethereat. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | 20.1 | Voting through a      proxy |
|--------|------|-----------------------------|

|   | A      shareholder may appoint a proxy to participate and vote in his stead, at a      particular general meeting or at general meetings of the Company in      general, personally or through a voting instrument, provided that the      proxy appointment instrument is given to the Company at least two business      days prior to the date of the general meeting. Notwithstanding the above,      the chairman of the general meeting may approve, at his sole discretion, a      proxy received by the Company at a later time prior to the general      meeting. In the event that the proxy appointment instrument is not for a      particular general meeting, a proxy appointment instrument deposited prior      to one general meeting shall also be valid for subsequent general      meetings. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      foregoing shall also apply to a shareholder, which is a corporation,      appointing a person to participate and vote in its stead at the general      meeting. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A      proxy need not be a shareholder of theCompany. |
|--------|-------------------------------------------------------|

|   | The      proxy appointment instrument shall be signed by the shareholder or by the      person authorized therefor in writing, and if the appointee is a      corporation, it shall be signed in the manner binding the corporation. The      Company may demand that it be given written confirmation to its      satisfaction of the authority of those signing to bind the corporation.      The proxy appointment instrument shall be drawn up in the form of wording      set forth below. The Company's secretary may, in his discretion, accept a      proxy appointment instrument in a different form of wording, provided that      the changes are not material. The Company shall only accept an original      proxy appointment instrument or a copy thereof, provided that it is      certified by an attorney with an Israeli license or a    notary. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Proxy      Appointment Instrument |
|--------|-----------------------------------|

|   | Date:      __________ |
|--------|-----------------------|

|   | To |
|--------|----|

|   | [The      Company's Name] |
|--------|---------------------------|

|   | [The      Company's Address] |
|--------|------------------------------|

|   | Dear      Sirs, |
|--------|-----------------|

|   | Annual/Special General      Meeting of                                                         ("the Company"      to be held      on                         ("the Meeting") |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | I      the undersigned, ___________________, Identity/Registration No.      __________, of ___________________, the registered owner of __________      (*)      shares [ordinary of NIS 1 n.v. each], hereby empower __________, Identity      No. (**)      __________ and/or __________, Identity No. __________ and/or      __________, Identity No. __________ to participate and vote in my name and      stead at the above meeting of the Company and at any adjourned meeting      thereof/at any general meeting of the Company, until I notify you      otherwise. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ___________________ |
|--------|---------------------|

|   | Signature |
|--------|-----------|

|   | (*) | A      registered shareholder may grant a number of proxy appointment      instruments, each in relation to another quantity of the Company's shares      held by him, provided that he does not grant proxy appointment instruments      for a quantity of shares larger than the quantity held by    him. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (**) | Where      the proxy does not have an Israeli identity document, the passport number      and the country which issued the passport may be  stated. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 20.3 | Voting      pursuant to a proxy appointment instrument shall be legal even if prior      thereto the shareholder dies or becomes legally incapacitated or bankrupt,      or in the case of a corporation - is liquidated or cancels the proxy      appointment instrument or transfers the shares in relation to which it is      given, unless written notice is received at the Company's office prior to      the meeting that such an event hasoccurred. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | CHAPTER      FOUR - THE BOARD OF DIRECTORS |
|--------|--------------------------------------------|

| 21. | The      Board of Directors' Powers |
|-----|-------------------------------------|

|   | 21.1      The      management of the business of the company shall be vested in the board of      directors, which may exercise all such powers and do all such acts and      things as the Company is authorized to exercise and do, and are not hereby      or by law required to be exercised or done by any other organ of the      Company. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 21.2 | The Company's      signatory rights and power of attorney on its  behalf |
|--------|------|--------------------------------------------------------------------------|

|   | 21.2.1 | The      board of directors shall determine the signatory rights in the Company for      various matters. The signature of any person appointed from time to time      by the board of directors, in general or for a special matter, himself or      together with others, together with the Company's seal or stamp or its      printed name, shall bind the Company, on such conditions as prescribed by      the board of directors. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 21.2.2 | The      board of directors may determine separate signatory rights in respect of      different matters of the Company and in respect of the amounts in respect      of which such persons are authorized tosign. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 21.2.3 | The      board of directors may from time to time empower any person to be the      Company's empowered representative for such objects, with such powers, on      such conditions and for such period as it deems fit, and it may give any      empowered representative as aforesaid the power to delegate all or any of      the powers, authorities and discretion given to  him. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 21.3 | The Company's      registered office |
|--------|------|--------------------------------------|

|   | The      board of directors shall determine what is the Company's registered      office. |
|--------|-------------------------------------------------------------------------------------------|

| 22. | The      Appointment of Directors and Termination of Their      Office |
|-----|------------------------------------------------------------------------|

|   | 22.1 | The number of      directors |
|--------|------|------------------------------|

|   | The      number of directors in the Company shall be not less than five nor more      than 15, unless the general meeting otherwise  resolves. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 22.2 | The director's      identity |
|--------|------|------------------------------|

|   | 22.2.1 | A      member of the board of directors may hold another office in the      Company. |
|--------|--------|--------------------------------------------------------------------------------------|

|   | 22.2.2 | A      corporation may hold office as a director in the Company, subject to the      provisions of article 23.6 below. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | 22.3 | The appointment and      tenure of directors |
|--------|------|----------------------------------------------|

|   | (a) | The      directors shall be elected at each annual meeting and shall hold office      until the end of the next annual meeting and so long as an annual meeting      is not convened, unless their office is vacated prior thereto in      accordance with the provisions of these  articles. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      elected directors shall enter into their positions from the end of the      meeting at which they are elected, unless a later date is specified in the      resolution appointing them. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | At      every annual meeting the directors appointed at the previous annual      meeting shall be deemed to have resigned from their office. A resigning      director may be re-elected. Notwithstanding the aforegoing, if no      directors are appointed at an annual meeting, the current directors shall      continue to hold office. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | A      special meeting of the Company may appoint directors for the Company      instead of directors whose office has been terminated and wherever the      number of members of the board of directors falls below the minimum      specified in the articles or by the general  meeting. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | The      provisions of sections 23.3(a) to (c) above shall not apply to the      appointment and tenure of external directors, in respect of whom the      provisions of the Companies Law shallapply. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 22.4 | The appointment of      directors by the board ofdirectors |
|--------|------|------------------------------------------------------------|

|   | The      directors have the right at any time to appoint any person as a director,      subject to the maximum number of directors specified herein, to fill a      place which has randomly been vacated or as an addition to the board of      directors. Any director so appointed shall hold office until the next      annual meeting and may bere-elected. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 22.5 | Alternates |
|--------|------|------------|

|   | A      director may from time to time appoint an alternate for himself      (hereinafter referred to as “alternate"), dismiss such alternate and      appoint another alternate instead of any alternate whose office has been      vacated for any reason, for a particular meeting or on a regular basis,      subject to the approval of the board of directors. A person who is not      qualified to be appointed as a director and a person holding office as a      director or alternate shall not hold office as an    alternate. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 22.6 | Empowered      representative of a corporation holding office as      director |
|--------|------|--------------------------------------------------------------------------------|

|   | A      director which is a corporation shall appoint an individual who is      qualified to be appointed as a director in the Company to hold office on      its behalf on a permanent basis, or for a particular meeting, or for a      particular period, and the said corporation may dismiss the individual and      appoint another in his stead. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | 22.7  | Empowered      director |
|--|------------|-------------------------|

|   | 22.8 | The manner of      appointing or dismissing an alternate or empowered representative of a      corporation holding office as adirector |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | The      appointment or dismissal of empowered representatives of corporations      holding office as directors or of alternates shall be effected by written      notice to the Company's secretary signed by the appointors and shall enter      into force on the date specified in the notice of appointment or      dismissal, or on the date of its delivery to the Company's secretary,      whichever is the later. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 22.9 | Termination of the      office of a director |
|--------|------|----------------------------------------------|

|   | 22.9.1 | The      office of a director shall terminate in any one of the following      cases: |
|--------|--------|---------------------------------------------------------------------------------------|

|   | (a) | if      he resigns from his office by a letter signed by him which is submitted to      the Company; |
|--------|-----|------------------------------------------------------------------------------------------------------|

|   | (b) | if      his office is terminated, in accordance with the provisions of the      Companies Law; |
|--------|-----|------------------------------------------------------------------------------------------------|

|   | (c) | if      he is dismissed from his office following a resolution passed by the      Company's general meeting, before the end of his term of office, provided      that the director had been given a reasonable opportunity to present his      position to the general meeting; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 22.10 | The implications of      the termination of a director's office on the board of directors'      operation |
|--------|-------|-----------------------------------------------------------------------------------------------------------|

|   | Where      the place of a director is vacated, the remaining directors may continue      to act so long as the number of directors remaining does not fall below      the minimum number of directors specified in the articles or by the      general meeting. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Where      the number of directors falls below the minimum number, the remaining      directors may only act in order to call a general meeting of the      Company. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 22.11 | The Directors'      remuneration |
|--------|-------|----------------------------------|

|   | The      members of the board of directors who do not hold other offices in the      Company and who are not external directors shall not receive remuneration      from the Company's monies, unless the general meeting otherwise resolves      and in such amount as the general meeting prescribes, subject to the      provisions of the law. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      directors' remuneration may be prescribed as an overall payment or as      payment in respect of participation at meetings or any combination      thereof. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Company may, in a board of directors' resolution, reimburse expenses      incurred by a director for the purpose of performing his      position. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23. | The      Directors' Acts |
|-----|--------------------------|

|   | 23.1 | The board of      directors' meetings |
|--------|------|---------------------------------------|

|   | (a) | The      board of directors' chairman may convene the board of directors at any      time. |
|--------|-----|--------------------------------------------------------------------------------------------|

|   | (b) | The      board of directors' chairman shall convene the board of directors pursuant      to the Company's requirements and at least four times a year, in a manner      enabling the Company to comply with the provisions of the law regarding      the publication of financial statements and reporting to the      public. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | The      board of directors' chairman shall convene the board of directors and hold      a board of directors' meeting on a specified matter on the demand of at      least two directors or one director alone if the Company has less than      five directors. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | The      board of directors' chairman shall act without delay to call a meeting of      the board of directors within 14 days of being notified by a director of      the Company that he has learned of a matter of the Company in which a      breach of the Law or impairment to proper business procedure has prima      facie been discovered or of the date on which the Company's auditor      reports to him that he has learned of material deficiencies in the audit      of the Company's accounts. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (e) | If      a notice or report of the general manager obliges action by the board of      directors, the board of directors' chairman shall, without delay and      within 14 days of the notice or report, call a meeting of the board of      directors. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | If      the board of directors’ chairman did not convene the board of directors in      accordance with the above, two directors may convene the board of      directors. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.2 | Calling a board of      directors' meeting |
|--------|------|--------------------------------------------|

|   | 23.2.1 | Notice      of a board of directors' meeting may be given orally or in writing,      provided that the notice is given in seven days prior to the date fixed      for the meeting, unless all the members of the board of directors or their      alternates or empowered representatives agree to a shorter time. However,      in a case that the board of directors’ chairman finds that an urgent      meeting is required, the notice of a board of directors’ meeting shall be      given not later than 24 hours prior to the date fixed for the      meeting. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Notice      as aforesaid shall be sent in writing or by facsimile or e-mail or by      other media, to the postal address, facsimile number, e-mail address or      other address given for the sending of notices by other media, as the case      may be, given by the director to the Company's secretary upon his      appointment, or in written notice to the secretary    thereafter. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Notice      as aforesaid shall be given orally to a director personally or by      telephonic notice to the telephone number given by the director to the      Company's secretary upon his appointment, or in written notice to the      secretary thereafter. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Notice      given or sent as aforesaid shall be deemed to have been given to a      director personally on the date of being given or sent as      aforesaid. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 23.2.2 | The      notice calling the meeting shall include the place and date of the board      of directors' meeting, arrangements with regard to the manner of      conducting the meeting and details of the matters on the agenda, and any      other material which the board of directors' chairman wishes to attach to      the notice of the meeting. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.3 | The agenda for the      board of directors' meetings |
|--------|------|------------------------------------------------------|

|   | The      agenda for the board of directors' meetings shall be prescribed by the      board of directors' chairman and shall include the following      matters: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | matters      prescribed by the board of directors'chairman; |
|--------|-----|-------------------------------------------------------------|

|   | (b) | matters      in respect of a meeting has been fixed, as provided in sections 24.1(c) to      (e) above; |
|--------|-----|---------------------------------------------------------------------------------------------------------|

|   | (c) | any      matter which a director or the general manager requests the board of      directors' chairman, a reasonable time (having regard to the nature of the      matter) prior to the board of directors' meeting, to include on the      agenda. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.4 | Quorum |
|--------|------|--------|

|   | The      quorum for meetings shall be one third of the members of the board of      directors but not less than 5 members, or any other quorum prescribed by a      majority of the members of the board of directors from time to      time. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.5 | Voting by the board of      directors |
|--------|------|---------------------------------------|

|   | Issues      arising at the board of directors' meetings shall be decided by a majority      of votes of the directors present (or participating, in the case of voting      by media) and voting, each director having one  vote. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.6 | Passing resolutions      without convening |
|--------|------|--------------------------------------------|

----

|   | The      board of directors may pass resolutions without actually convening,      provided that all the directors entitled to participate in a discussion      and vote on a matter brought for resolution have agreed      thereto. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.7 | Resolution approved by      media |
|--------|------|-----------------------------------|

|   | A      resolution approved by media by the directors shall be treated as a      resolution duly passed at a meeting of the board of directors, and the      provisions of section 24.6 above shall apply  thereto. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A      resolution as aforesaid may be passed by the approval given by media of      some of the directors, to the extent that the directors who do not approve      the resolution were not entitled to participate in the discussion and vote      on such resolution pursuant to the law and provided that they confirm by      media that they are aware of the intention to pass the said      resolution. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.8 | Validity of the      directors' acts |
|--------|------|--------------------------------------|

|   | All      acts done in good faith at the directors' meeting or by a board of      directors' committee or by any person acting as a director shall be valid      even if it later transpires that there was some defect in the appointment      of such director or person or that they or one of them were actually      disqualified as though every such person had been duly appointed and was      qualified to be a director. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.9 | Minutes of board of      directors' meetings |
|--------|------|----------------------------------------------|

|   | The      board of directors' chairman shall procure that minutes are properly kept      of the board of directors' meetings, which shall  include: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the      names of those participating and present at each  meeting; |
|--------|-----|---------------------------------------------------------------------|

|   | (b) | all      the resolutions and main points of the discussion at the said      meetings. |
|--------|-----|---------------------------------------------------------------------------------------|

|   | All      such minutes which are signed by the board of directors' chairman at such      meeting or by the board of directors' chairman at the subsequent meeting      shall be accepted as prima facie proof of the matters recorded      therein. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 24. | Board      of Directors' Committees |
|-----|-------------------------------------|

|   | 24.1 | Subject      to the provisions of section 112 of the Companies Law, the directors may      delegate their powers, or any of them, to committees as they deem fit and      they may from time to time widen, narrow or cancel the delegation of such      a power; however, the narrowing or cancellation of a power as aforesaid is      not such as to prejudice the validity of a committee resolution pursuant      whereto the Company acted vis-a-vis another person, who was not aware of      the said change. Every such committee must, at the time of exercising a      power as aforesaid, comply with all the directions given to it from time      to time by the directors. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 24.2 | A      board of directors' committee shall include at least two directors, one of      whom shall be an external director, save for the audit committee, which      shall include at least three directors and all the company's external      directors shall be members thereof. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 24.3 | The      Quorum for each committee of the board of directors shall be a majority of      the committee’s members or other quorum determined by the board of      directors. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 24.4 | The      meetings and discussions of the board of directors' committees shall be      governed by the provisions regarding the meetings of the directors,      mutatis mutandis, so long as other provisions are not prescribed by the      directors in such regard, and provided that the quorum for meetings of      such committees shall be at least twomembers. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 24.5 | A      resolution passed or an act done by a board of directors' committee shall      be treated as a resolution passed or act done by the board of directors,      unless expressly otherwise prescribed by the board of directors for a      particular matter or in respect of a particular  committee. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25. | The      Board of Directors' Chairman |
|-----|---------------------------------------|

|   | 25.1 | Appointment |
|--------|------|-------------|

|   | The      Board of Directors may from time to time, elect one of its members to be      the chairman of the Board of Directors, remove such      chairman  from office and appoint other in his      place.  The chairman of the board of Directors shall preside at      every meeting of the Board of Directors, but if there is no such chairman,      or if at any meeting he is not present within fifteen (15) minutes of the      time fixed for the meeting or if he is unwilling to take the chair, the      Directors present shall choose one of their number to be the chairman of      such meeting. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 25.2 | Powers |
|--------|------|--------|

|   | (a) | The      board of directors' chairman shall conduct the board of directors'      meetings and shall sign the discussionminutes. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If      the votes on a board of directors' resolution are tied, the board of      directors' chairman shall not have an additional  vote. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | The      board of directors' chairman may, at any time, on his own initiative or      pursuant to a resolution of the board of directors, demand reports from      the general manager on matters relating to the Company's      business. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 25.3 | Provisions to the acts      of the board of directors'chairman |
|--------|------|----------------------------------------------------------------|

|   | (a) | The      board of directors' chairman shall not serve as the Company's general      manager, unless appointed in accordance with the provisions of article      27.2 below. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The      board of directors' chairman shall not be a member of the audit      committee. |
|--------|-----|------------------------------------------------------------------------------------------|

|   | 25A. | Approvals      for Ordinary Interested Party  Transaction. |
|--------|------|------------------------------------------------------------|

|   | Subject      to the provisions of the Companies Law, (i) a transaction between the      Company and an officer of the Company or a person that controls the      Company or (ii) a transaction between the Company and another person in      which an officer of the Company or a person that controls the Company has      a personal interest, which transaction is not in any such case      extraordinary (“Ordinary Interested Transactions”), will be approved by      the Company in the followingmanner: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 25A.1  By      the Board of Directors, or by the Audit Committee, or by the Chief      Executive Officer with two directors that have no personal interest in the      transaction, or by another body authorized by the Board of Directors,      whether such body is authorized by the Board of Directors by means of a      specific resolution or by board practice, or whether such body is granted      authority by means of a general authorization, an authorization for a      particular type of transaction or an authorization for a particular      transaction. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 25A.2   The      approval of Ordinary Interested Transactions by the bodies or persons      identified in clause 25A.1 may be done by means of an approval of a      particular type of transaction or an approval of a particular      transaction. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26. | The      General Manager |
|-----|--------------------------|

|   | 26.1 | The appointment and      dismissal of the generalmanager |
|--------|------|----------------------------------------------------------|

|   |  The      board of directors may from time to time appoint one or more persons,      whether or not director, as general manager or managers, or managing      director, 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 of      directors may deem fit, subject to such limitations and restrictions as      the board of directors may form time to time prescribe. Unless otherwise      determined by the board of directors, the general manager shall have      authority with respect of the management of the Company in the ordinary      course of business. Such appointment(s) may be either for a fixed term or      without any limitation of time, and the Board of Directors may from time      to time fix his or their salaries and emoluments, remove or dismiss him or      them from office and appoint another or others in his or their place or      places, subject to any applicablelaw. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | 26.2 | The board of      directors' chairman as generalmanager |
|--------|------|---------------------------------------------------------|

|   | (a) | The      Company's general meeting may authorize the board of directors' chairman      to fill the position of general manager or to exercise his powers,      provided that the majority of votes to the resolution shall be the needed      under the Companies Law. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | The      validity of such a resolution is limited to a period not exceeding three      years from the date the resolution is passed by the general meeting. If no      period is specified for authority as aforesaid, the authority shall be for      a period of three years. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Before      the end of the said three year period and even after it has come to an      end, the general meeting may pass another resolution, and so on and so      forth. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | The      said resolution may relate to the authorization of the board of directors'      chairman in general or it may relate to the authorization of a particular      board of directors' chairman. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 26.3 | The general manager's      powers |
|--------|------|-----------------------------------|

|   | (a) | The      general manager is responsible for the routine management of the Company's      affairs within the framework of the policy prescribed by the board of      directors and subject to itsguidelines. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      general manager shall be under the supervision of the board of directors      and subject to its guidelines. |
|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | The      general manager shall appoint and dismiss the Company's officers, save for      the directors and general manager, and shall determine the terms of their      employment, including terms of salary, subject to the approval of the      board of directors, in relation with appointments, dismissals or terms of      employment of such officers, which the board of directors determines that      its approval is required for. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The      board of directors may instruct the general manager how to act in a      particular matter; if the general manager does not obey the instruction,      the board of directors may exercise the power required to implement the      instruction in his stead. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | If      the general manager is unable to exercise his powers, the board of      directors may exercise them in his stead or authorize someone else to      exercise them. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Subject      to the provisions of the Companies Law, the board of directors may      delegate to the general manager powers which the board of directors has      pursuant to the Company's articles, as it deems fit, and it may delegate      these powers, or any of them, for such period and objects, on such      conditions and with such restrictions as it deems fit. The board of      directors may alter or cancel any delegation of powers as      aforesaid. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 26.4 | The general manager's      reporting duties |
|--------|------|---------------------------------------------|

|   | The      general manager must notify the board of directors' chairman of any      exceptional matter which is material to the Company or of any material      deviation of the Company from the policy prescribed by the board of      directors. If the Company does not have a board of directors' chairman,      for any reason, the general manager shall notify all the board of      directors' members as aforesaid. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      general manager shall submit reports to the board of directors on the      matters, at the times and on the scale prescribed by the board of      directors. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      general manager shall report to the board of directors' chairman, on his      demand, on matters relating to the Company's business and the proper      management thereof as mentioned in article 24.1  above. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 26.5 | Delegation of the      general manager's powers |
|--------|------|-------------------------------------------------|

|   | The      general manager may, with the board of directors' approval, delegate any      of his powers to another, who is subordinate to  him. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

| 27. | Secretary,      Internal Auditor and Other Officials in the  Company |
|-----|----------------------------------------------------------------------|

|   | 27.1 | Secretary |
|--------|------|-----------|

|   | 27.1.1 | The      board of directors may appoint a secretary for the Company, on such terms      as it deems fit, and may appoint a deputy secretary and determine their      duties and powers. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 27.1.2 | If      a secretary is not appointed for the Company, the general manager, or      someone authorized by him for such purpose and in the absence of a general      manager someone authorized for such purpose by the board of directors,      shall perform the duties prescribed for the secretary pursuant to the law,      these articles and the board of directors'  resolution. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 27.1.3 | The      Company's secretary shall be liable for all the documents kept at the      Company's registered office, as provided in section 124 of the Companies      Law, and shall keep the registers kept by the Company pursuant to the      law. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 27.2 | Internal      auditor |
|--------|------|-----------------------|

|   | 27.2.1 | The      board of directors shall appoint an internal auditor; the internal auditor      shall be appointed on the proposal of the audit  committee. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 27.2.2 | The      Company's organizational superior over the internal auditor shall be      nominated by the board ofdirectors. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | 27.2.3 | The      internal auditor shall submit a proposal for an annual or periodic work      plan to the board of directors, which shall be approved by it, with such      changes as it deems fit. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 27.2.4 |     The      internal auditor shall examine whether the Company’s acts are correct in      terms of obedience the law and of orderly      business  practice. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28. | Auditor |
|-----|---------|

|   | 28.1 | The      annual general meeting shall appoint an auditor for the period up to the      end of the following general meeting. The general meeting may appoint an      auditor for a period that shall not extend beyond the end of the third      general meeting after the general meeting at which he was appointed. Where      the auditor is appointed for such a period, the annual meeting shall not      discuss the appointment of an auditor during the said period, unless a      resolution is passed to terminate hisoffice. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 28.2 | The      general meeting may at any time terminate the office of the auditor or      decline to renew it. |
|--------|------|-----------------------------------------------------------------------------------------------------------|

----

|   | 28.3 | The      board of directors shall determine the remuneration of the Company's      auditor and shall report thereon to the Company's annual      meeting. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 28.4 | The      board of directors shall determine the auditor's remuneration for services      other than the audit and shall report thereon to the Company's annual      meeting. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29. | Dividend      and Bonus Shares |
|-----|--------------------------------|

|   | 29.1 | Right to dividend or      bonus shares |
|--------|------|----------------------------------------|

|   | 29.1.1 | The      Company's shareholders have a right to receive dividend or bonus shares,      if the Company resolves thereon, in accordance with the rights attached to      any class of shares in such regard. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 29.1.2 | Dividend      or bonus shares shall be distributed amongst anyone who become a      shareholder on the date of the resolution on the distribution or at a      later date, if another date is prescribed therefor in such resolution      (hereinafter referred to as “the determining  date"). |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 29.1.3 | Subject      to the special rights granted to special shares pursuant to their issue      conditions, the Company's profits, in respect of which a resolution was      passed to distribute them as dividend or bonus shares, shall be paid pro      rata to the amount paid or credited as paid on account of the nominal      value of the shares held by theshareholder. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 29.1.4 | If      not otherwise provided in the shares' issue conditions or in the general      meeting's resolution, all the dividends and bonus shares on shares which      are not fully paid within any period in respect of the dividends or bonus      shares are payable shall be paid pro rata to the amounts paid or credited      as paid on the nominal value of the shares during any part of the said      period (pro rata temporis). |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                              | The      board of directors may, in its discretion, make provisions to special      funds of any amount from the Company's profits, or from a revaluation of      its assets, or its proportional part in the revaluation of the assets of      its affiliates, and determine the purpose of these  funds. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 29.2 | Payment of the      dividend |
|--------|------|------------------------------|

|   | 29.2.1 | The      Board of directors may distribute dividends subject to any applicable      law. |
|--------|--------|------------------------------------------------------------------------------------------|

|   | 29.2.2 | Manner of      payment |
|--------|--------|------------------------|

|   | If      not otherwise provided in the resolution on the dividend's distribution,      it shall be possible to pay any dividend less the tax required pursuant to      the law by a cheque to the payee alone, which shall be sent by registered      mail in accordance with the registered address of the shareholder entitled      thereto, or by a bank transfer. Any such cheque shall be made out to the      order of the person to whom it is beingsent. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In      the case of registered joint shareholders, the cheque shall be sent to the      shareholder whose name is entered first in the register of shareholders in      relation to the joint shareholding. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      dispatch of the cheque to a person who on the prescribed date is entered      in the register of shareholders as the holder of a share, or in the case      of joint shareholders - one of the joint shareholders, shall serve as a      release in relation to all the payments made in connection with such      share. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Company may resolve that it shall not send a cheque under a certain      amount, and the dividend amounts that should have been payable as      aforesaid shall be treated as unclaimed  dividend. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 29.2.3 | Unclaimed      dividend |
|--------|--------|-------------------------|

|   | The      board of directors may invest any dividend not claimed within a year of      being declared or otherwise use it in favor of the Company until it is      claimed. The Company shall not be liable to pay interest or linkage for      unclaimed dividend. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 29.2.4 | Dividend in      specie |
|--------|--------|-------------------------|

|   | Where      the Company declares a dividend, it may resolve that such dividend shall      be paid, in whole or in part, by the distribution of particular assets,      including paid shares or debentures of any other company or by a      combination of such assets. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 29.3 | The capitalization of      profits and the distribution of bonus  shares |
|--------|------|--------------------------------------------------------------------------|

|   | 29.3.1 | Subject      to any applicable law, the Company's undistributed profits, or premium on      shares, or funds created from a revaluation of the Company's assets, or      funds created on an equity basis from the profits of affiliated companies,      or from a revaluation of the assets of affiliated companies and capital      redemption funds - may be capitalized and distributed amongst the entitled      shareholders, pursuant to section 31.1 above, to be held by them as      capital, and all or any of the money from this capitalization may be used      in the name of such shareholders for the full payment, at the nominal      value or with such premium as the resolution prescribes, of shares      distributed in accordance therewith, and such distribution or payment      shall be accepted by such shareholders as full consideration for their      benefit in the aforementioned capitalized amount, as prescribed by the      board of directors. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 29.3.2 | Where      the Company resolves to distribute bonus shares, it may resolve to      transfer to a special fund designated for a distribution of bonus shares      in the future such amount the capitalization of which would be sufficient      to allot to anyone who at such time has a right to purchase shares of the      Company (including a right which is only exercisable at a later date)      bonus shares of such nominal value as would have been due to him had he      exercised the right to purchase the shares prior to the determining date      at the price of the right in force at such time. If after the determining      date the holder of the said right exercises his right to purchase the      shares or part thereof, the board of directors shall allot him fully paid      bonus shares at such nominal value and of such class as would have been      due to him had he exercised the right to purchase the shares which he      actually purchased prior to the determining date, by appropriate      capitalization that shall be effected by the board of directors from the      said special fund. With regard to determining the nominal value of the      bonus shares that are distributed, any amount transferred to the special      fund created in respect of a distribution of previous bonus shares shall      be treated as though already capitalized and as if shares entitling the      holders of the right to purchase shares of the Company to bonus shares had      already been allotted therefrom. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 29.3.3 | In      a distribution of bonus shares, all the Company's shareholders shall      receive shares of a uniform class or of the class which vested him with      the rights to receive the bonus shares, as prescribed by the board of      directors. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 29.3.4 | In      order to implement any resolution pursuant to the provisions of section      31.4, the board of directors may settle any difficulty arising in relation      to a distribution of bonus shares as it deems fit, and in particular may      issue certificates for fractions of shares and sell the fractions in order      to pay the proceeds thereof to entitles and may determine the value for      the purpose of distribution of certain assets and resolve that payments in      cash shall be made to the shareholders in reliance upon the value so      prescribed, or that fractions whose value is less than NIS 1 shall not be      taken into account for the purpose of adjusting the rights of all the      parties. The board of directors may pay cash or grant these particular      assets to trustees on trust in favor of the persons entitled to dividend      or capitalized fund, as it deemsbeneficial. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | 29.4  | Purchase of the      Company’s Share |
|--|------------|--------------------------------------------|

| 30  | Insurance      of Office Holders |
|----------|----------------------------------|

|   | 30.1 | The      Company may insure its Office Holders against liabilities derived from      their duties towards the Company in accordance with the following      provisions of this article. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 30.2 | The      Company may enter into a contract for the insurance of an Office Holder      against any liability he may incur in consequence of an act which he      performed in his capacity as an Office Holder, in each of the following      cases: |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 30.2.1 | a      breach of his duty of care towards the Company or towards another      person; |
|--------|--------|---------------------------------------------------------------------------------------|

|   | 30.2.2 | a      breach of his duty of loyalty towards the Company, provided that the      Office Holder acted in good faith and that he had reasonable grounds to      believe that the act would not harm theCompany; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 30.2.3 | a      monetary obligation that maybe imposed on him for the benefit of another      person; and |
|--------|--------|--------------------------------------------------------------------------------------------------|

|   | 30.2.4 | a      breach of any other duty or any other obligation, to the extent insurance      may be permitted by law. |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

| 31  | Indemnification      of Office      Holders |
|----------|---------------------------------------------|

|  | 31.1. | The      Company shall not indemnify an Office Holder except in accordance with the      following provisions of thissection. |
|--|-------|-------------------------------------------------------------------------------------------------------------------------------|

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|  | 31.2. | The      Company may indemnify an Office Holder, in advance and retroactively, to      the fullest extent permitted under theStatutes. |
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|  | 31.3. | Without      derogating the aforesaid under this Article 31.2 hereinabove, the Company      may undertake to indemnify an Office Holder as  follows: |
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|   | 31.3.1. | The      Company may undertake to indemnify an Office Holder for future obligation      or expense imposed on him/her in consequence of an act done in his/her      capacity as an Office Holder therein or as a result of being an Office      Holder, in another company in which the Company holds shares or has      interests, as specified in this Sectionbelow: |
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|   | 31.3.1.1. | a      monetary obligation imposed on him/her or incurred by him/her in favor of      another person pursuant to a judgment, including a judgment given in      settlement or a court approved settlement or arbitrator's      award; |
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|   | 31.3.1.2. | reasonable      legal fees, including attorney’s fees, incurred by an Office Holder in      consequence of an investigation or proceeding filed against him by an      authority that is authorize to conduct such investigation or proceeding,      and that resulted without filing an indictment against him/her and without      imposing on him/her financial obligation in lieu of a criminal proceeding,      or that resulted without filing an indictment against him/her but with      imposing on him a financial obligation as an alternative to a criminal      proceeding in respect of an offense that does not require the proof of      criminal intent. For the purposes of these  Articles: |
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|   | 31.3.1.3. | reasonable      litigation costs, including attorney’s fees, incurred by an officer or      which he is order to pay by a court, in proceedings filed against him by      the Company or on its behalf or by another person, or in a criminal charge      of which he is acquitted, or in a criminal charge of which he is convicted      of an offence that does not require proof of criminal    intent. |
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|   | 31.3.2. | Such      undertaking to indemnify for future events as set forth in Article      31.3.1.1 must be limited to events which in the Board's opinion are      foreseeable at the time of giving the indemnity undertaking in view of the      Company’s business, and in such amount or standard as the Board deems      reasonable under the circumstances.                                                                                                                                                                                                                                                                                    |
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|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |    | Such      undertaking must specify the events that in the Boards' opinion are      foreseeable in view of the Company’s actual business at the time of the      undertaking and the amount or the standards that the Board deemed      reasonable at the time.The      aggregate amount of indemnification (in addition to any insurance proceeds      received) payable pursuant to all such undertakings shall not      exceed 25% of the shareholders’ equity of the Company, as set forth      in the Company’s most recent consolidated financial statements prior to      the applicable payment of  indemnification. |

|   | 31.3.3. | Without      prejudice to the aforesaid provisions, the Company may retroactively      indemnify an Office Holder for events specified in Article 31.3.1 above,      beyond the limits set forth in Article 31.3.2  above. |
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| 32          | Exemption      of Office Holder |
|----------------------------------------------------------|---------------------------------|

|   | 32.1 | The      Company shall not exempt an Office Holder from his liability except as      specified in the following provision of this  article. |
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|   | 32.2 | The      Company may exempt an Office Holder prospectively from liability, in whole      or in part, for damage in consequence of a breach of his duty of care      towards the Company. |
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| 32          | Insurance,      Indemnification and Exemption of Office Holders –      General |
|----------------------------------------------------------|--------------------------------------------------------------------------------------|

|   | 33.1 | The      Company shall not enter into a contract to insure against the liability of      an Office Holder or undertake to indemnify an Office Holder or exempt an      Office Holder for any of thefollowing: |
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|   | 33.1.1 | a      breach of his duty of loyalty towards the Company, unless it is in      accordance with the provisions of sub-article  33.2.2; |
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|   | 33.1.2 | an      intentional or reckless breach of his duty of  care; |
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|   | 33.1.3 | an      act done with the intention of unduly deriving a personal profit;      or |
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|   | 33.1.4 | a      fine imposed on him. |
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| 34 | Winding      Up |
|----|-----------------|

|   | 34.1 | If      the Company is wound up, voluntarily or otherwise, the liquidator may,      with the general meeting's approval, distribute parts of the Company's      property in specie amongst the shareholders, and he may, with similar      approval, deposit any part of the Company's property with trustees in      favor of the shareholders as the liquidator, with the approval mentioned      above, deems fit. |
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|   | 34.2 | Subject      to the special rights attached to shares, if shares are issued with      special rights, the Company's shares shall rank equally inter se in      relation to the amounts of capital paid or credited as paid on the nominal      value of the shares, in connection with the return of the capital and      participation in a distribution of the Company's surplus assets on winding      up. |
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| 35 | The      Company's  Reorganisation |
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|   | 35.1 | At      the time of selling the Company's property, the board of directors, or the      liquidators (in the case of winding up) may, if so permitted in a      resolution passed by the Company's general meeting by a special majority,      accept fully or partially paid shares, debentures or securities of another      company, Israeli or foreign, incorporated or about to be incorporated for      the purpose of purchasing the Company's property, or part thereof, and the      directors (if the Company's profits so permit) or the liquidators (in the      case of winding up) may distribute the shares or securities mentioned      above or any other property of the Company amongst the shareholders,      without realizing them or depositing them with trustees for the      shareholders. |
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|   | 35.2 | The      general meeting may, in a resolution passed by the Company's general      meeting by a special majority, resolve on a valuation of the securities or      property mentioned above at such price and in such manner as the general      meeting resolves, and all the shareholders shall be liable to accept any      valuation or distribution permitted as aforesaid and waive their rights in      such regard, save, where the Company is about to be wound up or is in      winding up proceedings, for those legal rights (if any) which pursuant to      the provisions of the law may not be altered or  qualified. |
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|   | CHAPTER      NINE - MISCELLANEOUS |
|--------|-----------------------------------|

| 36. | Notices |
|-----|---------|

|   | 36.1 | Subject      to the provisions of section 16.4 above, notice or any other document may      be sent by the Company to all the shareholders appearing in the Company's      register of shareholders personally or by registered mail to such      shareholder's address as entered in the register of shareholders or at the      address given by the shareholder to the Company in writing for the purpose      of sending notices. |
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|   | 36.2 | All      the notices which must be given to the shareholders shall be given, in      relation to shares which are jointly held, to the person whose name is      entered first in the register of shareholders and any notice given in such      manner shall be adequate notice to all the joint    shareholders. |
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|   | 36.3 | Subject      to the provisions of section 16.4 above, every shareholder entered in the      register of shareholders according to address, whether in Israel or      abroad, shall be entitled to have sent to him, at such address, any notice      which he is entitled to receive in accordance with the articles or the      provisions of the law. Save for the aforegoing, no person who is not      entered in the register of shareholders shall be entitled to receive any      notice from the Company. |
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|   | 36.4 | Any      notice or other document delivered or sent to a shareholder in accordance      with these articles shall be deemed to have been duly delivered and sent      in respect of all the shares held by him (alone or together with others),      even if such shareholder has passed away at such time, or become bankrupt,      or an order has been given for its winding up, or a trustee or liquidator      or receiver has been appointed for his shares (whether or not the Company      was aware thereof), until another person is entered in the register of      shareholders in his stead as the holder thereof, and the giving or      dispatch of a notice or document as mentioned above shall be deemed      adequate delivery or dispatch to any person who has a right in these      shares. |
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|   | 36.5 | any      notice or other document sent by the Company by mail in      accordance  with an   address in Israel shall be      deemed to have been delivered within 48 hours of the letter containing the      notice or document being mailed, or within 96 hours where the address is      abroad, and when coming to prove the delivery it shall be sufficient to      prove that the letter containing the notice or document was properly      addressed and mailed. |
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|   | 36.6   An      accidental omission in giving notice of a general meeting to      any      shareholder or non-receipt of      notice of a meeting or any other notice by a shareholder shall not cause      the cancellation of a resolution passed at such meeting or cancellation of      proceedings based on such notice. |
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|   | 36.7      Every      shareholder and every board of directors' member may waive his      right         to receive      notice or his right to receive notice within a particular time and may      agree that a general meeting of the Company or a board of directors'      meeting, as the case may be, be convened or take place despite the fact      that he has not received notice thereof, or despite the fact that the      notice was not received by him within the required time, subject to the      provisions of any law prohibiting such waiver or  consent. |
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|   | 37. | Amendment      to the articles ofassociation |
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|   | The      Company may amend its articles of association by a resolution adopted by a      majority of two thirds of the shareholders entitled to vote and voting      themselves, by proxy or through a voting instrument at a general meeting.      Abstentions shall not be included in thecount; |
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