**Exhibit      4.36**

**SALE      AGREEMENT **

**Made      and entered into at Tel Aviv on the 2**
**nd**

**      day of August 2007**

**Between:**

**ELDAR      GIL & MAHONEY ASSETS LTD. **

**“the      Seller”**

**of      the one part**
**;**

**And:**

**KFAR      HASHA’ASHUIM CENTRAL WAREHOUSE LTD.**

**“the      Purchaser”**

**of      the other part**

| WHEREAS: | Naaman                Porcelain Ltd., Publ. Co. 52-004438-9 (**“the                Company”**)                is a public company whose securities include: (a) ordinary shares                of NIS 1                par value each and (b) Debentures (Series A) convertible into ordinary                shares of NIS 1 par value each, and (c) Warrants (Series 2) exercisable                for ordinary shares of NIS 1 par value each, all of which are traded                on                the Tel Aviv Stock Exchange Ltd.;                and |
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| WHEREAS: | The                Seller declares that at the date of signing of this Agreement it                is the                owner of the securities of the Seller and at the date of closing                it will                be the owner of the shares sold and of the warrants sold, and at                the date                of closing it will transfer control (as defined in the Securities                Law) in                the Company to the Purchaser against payment of the consideration                in                accordance with this Agreement; and |
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| WHEREAS: | The                Seller declares that simultaneous with its signing this Agreement                it has                entered into a legally binding agreement with the other shareholders                for                acquisition of the shares of the other shareholders, and the other                shareholders have undertaken directly to the Purchaser to sell and                transfer the shares of the other shareholders to the Seller in a                manner                whereby at the date of closing the Seller will be the owner of the                shares                sold (confirmation by the shareholders is attached to this Agreement                as                Appendix D), subject to payment of the consideration by the Purchaser;                and |
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| WHEREAS: | The                Seller wishes to sell and transfer control in the Company to the                Purchaser                by way of the purchase of the shares sold and the warrants sold,                and the                Purchaser wishes to purchase and receive transfer from the Seller                of                control in the Company by way of purchasing the shares sold and the                warrants sold, all on the conditions and subject to the provisions                of this                Agreement; and |
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| WHEREAS: | The                parties wish to stipulate and entrench in the scope of the provisions                of                this Agreement the legal relationship between them in connection                with the                transaction for the sale of the shares sold, as also of the warrants                sold,                all under the terms and conditions and subject to the provisions                of this                Agreement; |
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**Now      therefore it is agreed, declared and stipulated by the parties as      follows**
**:      **

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

|   | 1.1 | The                preamble and the appendices to this Agreement constitute an integral                part                hereof. |
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|   | 1.2 | The                division of this Agreement into clauses and the insertion of headings                to                the clauses have been done as place-finders and for sake of convenience                only and no use shall be made thereof for purposes of the interpretation                of this Agreement. |
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|   | 1.3 | In                this Agreement words appearing in the singular shall also include                the                plural, and *vice                versa*,                as the case may be, unless otherwise expressly                stated. |
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| 2. | **Definitions** |
|----|-----------------|

|   | **“Convertible                      debentures of the Company”:** |   | NIS                      14,205,760 par value Debentures (Series A) which were issued                      by the                      Company pursuant to a prospectus dated May 30, 2005. The debentures                      are                      convertible at a conversion rate of NIS 9.72 par value Debentures                      (Series                      A) for each ordinary share of NIS 1 par value of the                      Company. |
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|   | **“Material                      non-conformity”:**     |   | 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | A                      non-conformity in the equity capital reflected in the financial                      statements                      in a sum exceeding NIS 2,000,000. It is clarified and agreed                      as exclusive                      exceptions to what is stated at the head of this definition                      that                      adjustments that may be required by virtue of the due diligence                      examination in connection with (ii) the appraisal of value                      of Malibu Ltd.;                      (iii) liabilities of the Mayo family (as defined below) will                      not be                      included in the scope of the amount, of two million new shekels                      as                      aforesaid, and/or  |
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|   |                                                                |   | 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Tax                      exposure to a high degree of certainty, in the opinion of the                      arbiter, in                      an amount for payment to the tax authorities which exceeds                      NIS 3.25 (three                      and a quarter) million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | **“Non-material                      non-conformity”:** |   | 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | A                      non-conformity in the equity capital reflected in the financial                      statements                      in a sum lower than NIS 2,000,000. It is clarified and agreed                      as exclusive                      exceptions to what is stated at the head of this definition                      that                      adjustments that may be required by virtue of the due diligence                      examination in connection with (ii) the appraisal of value                      of Malibu Ltd.;                      (iii) liabilities of the Mayo family (as defined below) will                      not be                      included in the scope of the amount, of two million new shekels                      as                      aforesaid, and/or |
|   |                                                                |   | 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Tax                      exposure to a high degree of certainty, in the opinion of the                      arbiter, in                      an amount for payment to the tax authorities of less than NIS                      3.25 (three                      and a quarter) million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | **“Stock                      Exchange”:**              |   | The                      Tel Aviv Stock Exchange Ltd.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | **“The                      regulatory approvals”:**    |   | An                      approval from the Commissioner of Restrictive Trade Practices                      for a                      “merger of companies” pursuant to the provisions of the Restricted Trade                      Practices Law, 5748-1988 (hereinafter: **“the                      Commissioner’s Approval”**),                      and any other permit or approval of any other competent authority,                      if and                      to the extent that it is required according to the provisions                      of any law                      for purposes of implementing the sale transactions of the shares                      sold as                      well as of the options sold. |
|   |                                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | **“The                      financial statements”:**    |   | The                      audited annual financial statements of the Company and the                      consolidated                      financial statements as at December 31, 2006 and the quarterly                      reviewed                      and unaudited reports of the Company and the consolidated financial                      statements as at March 31, 2007 and as at June 30, 2007. The                      financial                      statements are attached to this Agreement as **Appendices                      A(1), A(2) and A(3)**.                      The financial statements as at June 30, 2007 will be attached                      on the date                      of closing.                                             |

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|   | **“The                      existing capital of the Company”:**                                              |   | The                      issued and paid-up share capital of the Company as at the date                      of signing                      of this Agreement, namely: 7,900,908 ordinary shares of NIS                      1 par value of                      the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
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|   | **“The                      Company’s capital on the basis of a full                      dilution”:** |   | The                      issued and paid-up share capital of the Company immediately                      after                      conversion of all the convertible debentures of the Company                      series A (if                      same are converted) and after exercise of all the warrants                      of the Company                      (if same are exercised), including taking cognizance of distributions                      which are mentioned in Clause 7.1 of the Agreement, in other                      words: the                      Company’s capital on the basis of a full dilution, including the existing                      capital of the Company plus all the shares that will be created                      as a                      result of the conversion of all the convertible debentures                      of the Company                      and exercise of all the warrants of the Company. For the sake                      of                      illustration, as at the date of signing of this Agreement,                      the Company’s                      capital on the basis of a full dilution is 9,813,512.9 shares                      of the                      Company. |
|   |                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | **“Obligations                      of the Mayo family”:**                                                   |   | Severance                      pay obligations according to law (over and above the moneys                      that have                      accumulated in the managers insurance in respect of the severance                      pay                      component, as stated in Clause 15.8 of the employment agreements                      dated                      April 18, 2005 between the Company and Israel (Ben Avraham)                      Mayo and                      Israel Mayo (Ben Itzhak), which do not receive full expression                      in the                      financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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|   | **“The                      mediator”:**                                                                     |   | An                      attorney whose identity will be determined with the written                      consent of the                      parties up to the date of closing, and in the absence of such                      agreement                      his identity will be determined by the Tel Aviv District                      Court.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
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|   | **“The                      index”:**                                                                        |   | The                      price index known by the name of “the Consumer Price Index” (the general                      index) including fruit and vegetables, which is published by                      the Central                      Bureau of Statistics and including such index even if it is                      published by                      another official body or institution, and including any official                      index                      that may come in its stead, whether or not it is structured                      on the same                      data as the data on which the existing index is                      structured.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

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|   | **“The                      arbiter”:**                  |   | Mr.                      Ronen Barel, C.P.A., of Kost, Fohrer and Gabbai, and if he                      is unable or                      unwilling for any reason to be an arbiter he will be replaced                      in his                      absence by Mr. Hagit Niv of Kost Fohrer and Gabbai.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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|   | **“The                      conditions precedent”:**     |   | The                      conditions precedent as stated in Clause 11 of this                      Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | **“The                      nominee company”:**          |   | The                      Bank Leumi le-Israel Nominee Company Ltd.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | **“The                      Companies Law”:**            |   | The                      Companies Law, 5759-1999.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | **“The                      Securities Law”:**           |   | The                      Securities Law, 5728-1968.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | **“Business                      day”:**                 |   | Mondays                      to Thursdays in each week provided they are not a Jewish holiday,                      festival, *hol                      hamoed*,                      festival eve and/or public holiday or a day on which no business                      is                      conducted in the normal course for any reason at banks in                      Israel.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | **“The                      Company’s warrants”:** |   | As                      at the date of signing of the Agreement, 451,107 Warrants (Series                      2), of                      which 151,107 were issued by the Company pursuant to a prospectus                      dated                      May 30, 2005, and 300,000 Warrants (Series 2) were issued by                      the Company                      to the Company’s employees by way of a private placement. The terms and                      conditions of the warrants that were issued pursuant to the                      prospectus and                      the terms and conditions of the warrants that were issued to                      the Company’s                      employees are identical. The Warrants (Series 2) are exercisable                      for                      shares of the Company up to May 31, 2009 in consideration for                      a sum of NIS                      7.78, linked to the index in respect of the month of April                      2005. |
|   |                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | **“The                      warrants sold”:**            |   | 77,302                      warrants of the Company which are exercisable for 77,302 shares                      of the                      Company which as at the date of signing of this Agreement represent                      approximately 0.78% of the Company’s capital on the basis of a full                      dilution.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

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|   | **“The                      closing date”:**                                  |   | Up                      to five (5) business days after the date on which all the conditions                      precedent are fulfilled, provided that the closing date shall                      not be later                      than 90 days from the date of signing of the Agreement, or                      any other date                      that may be agreed between the parties. However it is clarified                      that the                      Purchaser, in its sole discretion and at its election, may                      demand that the                      closing date shall under no circumstances be before the elapse                      of 50 days                      from the date of signing of this Agreement and the Seller undertakes                      to                      accept the Purchaser’s demand in this connection provided that the                      specific date will be coordinated in advance with the                      Seller. |
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|   |                                                                                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | **“The                      Company’s shares”:**                        |   | Ordinary                      shares of NIS 1 par value each in the issued and paid-up share                      capital of                      the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | **“The                      shares sold”:**                                   |   | A                      quantity of ordinary shares of NIS 1 par value each of the                      Company which                      together with the warrants sold (on the assumption that they                      will be                      exercised) will at the date of closing represent 51.5% of the                      Company’s                      capital on the basis of a full dilution. For the sake of illustration,                      on                      the date of signing of the Agreement 4,976,658 ordinary shares                      of NIS 1                      par value each of the Company which together with the warrants                      sold                      (77,302) constitute 51.5% of the Company’s capital on a the basis of a                      full dilution at the date of signing.                                                                                                                                              |
|   |                                                                                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | **“Purchase                      price” or “the consideration”:** |   | An                      amount of NIS 97,000,000 (ninety-seven million) in respect                      of the control                      in the Company which is being transferred by way of purchasing                      all the                      Shares Sold and all the Warrants Sold.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | **“Increment                      to consideration”:**                        |   | An                      amount of NIS 3,000,000 (three million), which will be paid                      subject to the                      fulfillment of the conditions set forth in Clause 6.2 below                      of this                      Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | **“Officer”:**                                                                |   | As                      this term is defined in the Securities Law and including the                      secretary of                      the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | **“Securities”:**                                                             |   | As                      this term is defined in the Securities                      Law.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

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|   | **“The                      Seller’s securities”:**        |   | 3,742,922                      ordinary shares of NIS 1 par value each of the Company, which                      as at the                      date of signing of this Agreement represent approximately 47.37%                      of the                      existing capital of the Company and 38.14% of the Company’s capital on the                      basis of a full dilution (on the date of signature) and 77,302                      warrants of                      the Company which are exercisable for 77,302 shares of the                      Company which                      as at the date of signing of this Agreement constitute approximately                      0.78%                      of the Company’s capital on the basis of a full                      dilution. |
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|   |                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | **“The                      other shareholders”:**               |   | Strauss                      Investments Ltd., Michael Strauss and Raya Strauss Ben-Dor,                      Itzhak                      Mayo.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | **“The                      shares of the other shareholders”:** |   | 1,389,813                      ordinary shares of NIS par value each of the Company, which                      as at the date                      of signing of this Agreement represent approximately 17.59%                      of the                      existing capital of the Company and 14.16 [%] of the Company’s capital on                      the basis of a dilution.                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | **“Free                      and clear”:**                       |   | With                      respect to securities – free and clear of any pledge, charge,                      attachment, debt, lien or any third party right and including                      same being                      free of any blockage arrangement and/or restriction in regard                      to                      transferability or marketability.                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | **“The                      Companies Ordinance”:**              |   | The                      Companies Ordinance [New Version], 5743-1983                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | **“Third                      party”:**                          |   | Any                      person or body corporate who is not a party to this                      Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | **“The                      interim period”:**                   |   | The                      period from the date of signing of this Agreement and up to                      the date of                      closing or up to the date of expiration of this Agreement,                      whichever is                      the earlier.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | **“Payment”:**                                                   |   | Any                      payment that requires to be made in accordance with this Agreement                      shall                      be paid up to the end of the relevant business                      day.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

| 3. | **Objects                of the Agreement** |
|----|---------------------------------------------|

|   | The                objects of the Agreement are to stipulate and entrench the legal                relationship between the parties in connection with the transaction                for                the sale of the Shares Sold as well as of the Warrants                Sold. |
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| 4. | **Declarations                and undertakings of the                Seller** |
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|   | The                Seller hereby declares and undertakes to the Purchaser                that: |
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|   | 4.1 | The                Company is a public company, which was duly incorporated on July                30, 1972                as a private company in accordance with the Companies Ordinance,                and                commencing from November 1999 all the Company’s securities are traded on                the Stock Exchange. A copy of the updated memorandum and articles                of                association of the Company are attached to this Agreement as **Appendices                B(1) and B(2)**,                respectively. |
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|   | 4.2 | As                at the date of the signing of this Agreement the authorized capital                of the                Company is NIS 20,000,000, divided into 20,000,000 ordinary shares                of NIS                1 par value each, and the issued and paid-up capital of the Company                as at                the date of signing of this Agreement is NIS 7,900,908 divided into                7,900,908 ordinary shares of NIS 1 par value each. The entire issued                capital of the Company has been fully paid                out. |
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|   | 4.3 | In                2005 the Company issued NIS 32,000,000 par value debentures (Series                A)                which are convertible into shares of the Company, as well as 1,175,000                warrants (Series 2) which are exercisable for shares of the                Company. |
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|   | 4.4 | As                at the date of the signing of this Agreement there are NIS 14,205,760                par                value debentures (Series A) of the Company (which have not yet been                repaid) that are convertible into 1,461,497.9 shares of the                Company. |
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|   | 4.5 | As                at the date of signing of this Agreement there are 451,107 warrants                of the                Company (that have not yet been exercised) which are exercisable                for                451,107 shares of the Company. |
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|   | 4.6 | All                the Company’ securities1,                including the shares sold and the warrants sold are duly listed for                trading and are traded on the Stock Exchange and there is no restriction                and/or prohibition and/or bar according to the provisions of any                law,                regulations of the Stock Exchange and its directives to the sale                and                transfer of the Shares Sold and the Warrants Sold to the Purchaser,                or to                the Purchaser of any additional securities in the Company, and the                Sellers                are not aware of any intention and/or grounds for expunging the Company’s                securities from trading on the Stock Exchange and/or preventing continued                trading in the Company’s                securities. |
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|   | 4.7 | The                Company has properly regulated accounting – and it keeps books as                required according to any law. The financial statements are drawn                according to accepted accounting principles and standards, which                are                applied consistently, on the basis of all the accounting statements                and                the accounting standards that are in force and in accordance with                the                Securities Regulations, and same fully, correctly and properly reflect                the                condition of the Company, including the state of its liabilities,                assets                and rights as at the date on which they were                drawn. |
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| 1 | Except                300,000 warrants (Series 2) which were issued to employees of the                Company                in the scope of a private placement report dated August 30, 2005,                which                are registered warrants. |
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|   | 4.8 | To                the best of its knowledge, the full provisions in relation to liabilities                in respect of the Company’s employees and/or service providers have been                made in accordance with and pursuant to accepted accounting principles                and                standards, which are consistently applied, on the basis of all the                accounting statements and the accounting standards which are in force                and                in accordance with the Securities Regulations, and there are no                liabilities in connection with the Company’s employees which do not                receive full expression in the financial statements, apart from                liabilities of the Mayo family as defined above. For the avoidance                of                doubt it is clarified that if the Purchaser is of the opinion that                provisions should be made in respect of the obligations of payments                to                Itzhak Mayo, to Israel Mayo (before Avraham) and Israel Mayo (Ben                Itzhak)                in connection with the undertaking for non competition upon termination                of                the employer-employee relationships in accordance with Clause 11.2                of an                agreement with Itzhak Mayo and Clause 16.3 of the employment agreements of                Israel Mayo (Ben Avraham) and Israel Mayo (Ben Itzhak), then without                derogating from the remaining provisions of this Agreement, the matters                aforesaid will not constitute a breach of the representations stated                in                this clause. |
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|   | 4.9 | To                the best of its knowledge, the full tax and the other payments that                have                been demanded from the Company by the tax authorities up to the date                of                this Agreement or which the Company is liable for according to returns                and                reports it has lodged, have been paid in full, except for payments                in                respect of the 2006 tax year. The returns and reports that have been                lodged by the Company with the various tax authorities were lodged                on due                date and are, to the best of its knowledge, true and                accurate. |
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|   | 4.10 | The                last annual return that was lodged by the Company with the income                tax                authorities relates to the 2005 tax year. Final tax assessments have                been                issued to the Company in respect of income tax up to and including                the                year 2001. |
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|   | 4.11 | Commencing                from March 31, 2007, and except as stated in **Appendix                C**,                the Company acted in all its activities in accordance with and in                the                course of its ordinary business and to the best of its knowledge,                except                as stated in Appendix C, according to any law and/or agreement which                applies to it, and there has not                been: |
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|   | 4.11.1 | A                material change in its assets, liabilities, condition (financial                or                otherwise) or in its businesses as compared with what is reflected                in the                financial statements; |
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|   | 4.11.2 | Any                damage or loss, whether or not covered by insurance, which have a                materially adverse effect on the assets, the property, the condition                (financial or otherwise), on the business results or on its prospects                or                businesses; |
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|   | 4.11.3 | Any                waiver by the Company of a valuable right or of a material debt which                is                owed to the Company; |
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|   | 4.11.4 | Any                attachment, charge or claim, or a waiver of payment that is due to                the                Company, except those that were made in the ordinary course of business                and which do not, separately or cumulatively, adversely affect the                assets,                property, condition (financial or otherwise), the business results                or the                businesses of the Company; |
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|   | 4.11.5 | Any                change or amendment to a material agreement or arrangement under                which the                Company or any asset or other property thereof is bound or to which                same                are subject; |
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|   | 4.11.6 | Any                material change in any payment arrangement or agreement with any                employee                or officer; |
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|   | 4.11.7 | Any                loans the Company has given to its directors, employees, officers                or                consultants; |
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|   | 4.11.8 | Any                sale, transfer or lease (except in the ordinary course of business),                pledge or charge of any asset of the                Company; |
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|   | 4.11.9 | Any                event or circumstances that are likely to have a materially adverse                effect                on the assets, the property, the condition (financial or otherwise),                of                the Company, or on the business results, the prospects or the businesses                of the Company. |
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|   | 4.12 | Simultaneous                with the signing of this Agreement it entered into a binding agreement                with the other shareholders for the purchase of the shares of the                other                shareholders, and the other shareholders have undertaken directly                to the                Purchaser to sell and transfer the shares of the other shareholders                to the                Seller in a manner whereby on the date of closing the Seller will                be the                owner of the Shares Sold and the Seller would be able to fulfill                its                obligations to the Purchaser, including with regard to the sale of                control                in the Company to the Purchaser (confirmation by the shareholders                is                attached to this Agreement as **Appendix                D****);** |
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|   | 4.13 | The                Seller is the owner of the Seller’s securities and up to the date of                closing and the completion thereof it will be the owner of the Shares                Sold                and the Warrants Sold, which will on the date of closing constitute                at                least 51.5% of the Company’s capital on the basis of a full dilution. It                is clarified that the number of Shares Sold and the Warrants Sold                includes                the quantity of the Seller’s                securities. |
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|   | 4.14 | The                Seller’s securities are free and clear and will be in such condition as                on                the date of closing, apart from a charge of Excellence Nessuah Stock                Exchange Services Ltd. (hereinafter: “**Excellence**”).                An approval from Excellence to release the charge is attached to                this                Agreement as **Appendix                E**.                The Seller undertakes that at the date of closing the Shares Sold                as also                the warrants will be free and clear. The Seller has no obligation                to sell                and/or to transfer the Shares Sold and/or the Warrants Sold, in whole                or                in part, to any third party, and the Seller has not granted and will                not                grant a right to purchase the Shares Sold and/or the Warrants Sold,                in                whole or in part, to any third party, and no third party has a right                of                first refusal in connection with the purchase of the Shares Sold                and/or of                the Warrants Sold, in whole or in part, apart from a right of first                offer,                a tag-along right and a tag-along obligation which the Seller granted                in                accordance with the shareholder’s agreement, as described below. As at the                date of signing of this Agreement the Seller is not conducting any                negotiations in regard to the sale and/or transfer of the Seller’s                securities, in whole or in part, to any third                party. |
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|   |   | Included                in this, the Seller declares and undertakes that as at the date of                closing, the Agreement entered into between Keren and Adi Properties                Ltd.,                Eitan Eldar, Roy Gil and Itzhak Mayo (hereinafter: “**Mayo**”)                on April 18, 2005, as amended on September 18, 2005, which is attached                as                **Appendix                F**                (**“the                Shareholders Agreement**”)                will lapse and become duly null and void, and therefore the Shares                Sold                and the Warrants Sold will not be subject to a right of first offer,                a                tag-along right and a tag-along obligation which were granted in                the                Shareholders Agreement to Mayo. |
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|   | 4.15 | The                Company has delivered to all the authorities, including the Securities                Authority and the Stock Exchange, all the financial statements, the                periodic reports, the immediate reports and any other report and/or                information it was obliged to deliver to these authorities in accordance                with any law, and did so on the date on which it was obliged to do                so, and                the information contained in each of the aforesaid reports that were                delivered by the Company was correct and full at the date on which                it was                delivered. |
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|   | 4.16 | Subject                to the fulfillment of all the conditions precedent, there is no                restriction and/or prohibition and/or bar according to the documents                of                incorporation of the Seller and/or pursuant to the provisions of                an                agreement or any law in regard to its entering into the framework                of the                provisions of this Agreement and in regard to the performance of                its                obligations pursuant to the provisions hereof, and that its entering                into                the framework of the provisions of this Agreement and performance                of its                obligations pursuant to the provisions hereof have been duly approved                by                all its competent organs and same do not constitute and will not                constitute a breach of an undertaking, prohibition or any restriction                on                the Seller and/or its shareholders and/or its                officers. |
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|   | 4.17 | To                the best of its knowledge, the Company’s activities are in accordance with                the provisions of any law which applies to it, and the Company complies                with the provisions of any law which applies to it, including taking                cognizance of the fact of it being a public company, including the                Securities Law and being the regulations thereunder and it complies                with                all the instructions of the Tel Aviv Stock Exchange, except as described                in Appendix C, and apart from breaches which do not have a material                effect                on the Company’s activities. In this regard it is agreed that a breach                which constitutes a contravention of a statute shall be deemed to                be a                breach which does have a material effect on the Company’s                activities. |
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|   | 4.18 | Except                as described in Appendix C, there is no shortfall in any license                and/or                permit and/or approval that are required by the Company for purposes                of                its lawful activities which could have a materially adverse effect                on the                Company’s activities. In this regard the Seller declares that the Company                has an approval from the Fire Brigade Authorities for the Company’s                warehouse in Ramle and that the Company has applied orally to the                Ramle                Municipality with a request to receive a business license for the                warehouse as it has been told verbally that in accordance with the                provisions of the law there is no necessity for a business license                for the                warehouse. |
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|   | 4.19 | The                Company has rights of lease in respect of the land as described in                **Appendix                G**                to                this Agreement (hereinafter: “**the                Lease Agreements**”).                Apart from the Lease Agreements mentioned above, the Company does                not have                rights of any nature in land. The Lease Agreements are in force.                No                warning has been received about a breach of the agreements on the                part of                the Company and the Company is not aware of any reason or ground                for the                cancellation of the Lease Agreements by any of the parties thereto,                except                as described in Appendix C. |
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|   | 4.20 | A                list of all the material agreements and arrangements to which the                Company                is a party is attached to this Agreement as **Appendix                H**.                Apart from the agreements mentioned in Appendix H, the Company and/or                the                Seller is not a party to an agreement, correspondence, arrangement                or                understanding, verbal or in writing, of whatsoever nature the effect                of                which on the business of the Company is material or is likely to                have such                effect thereon, and all the agreements described as aforesaid are,                as at                the date of signing of the agreement, in full force. The Company                and/or                the Seller have not breached any of them and to the best of the Seller’s                knowledge there are no grounds for the cancellation or termination                thereof. |
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|   | 4.21 | All                the agreements and/or arrangements of whatsoever nature to which                the                Company or subsidiaries are a party and which are likely to be affected                as                a result of the change of control in the Company in accordance with                this                Agreement, or which necessitate the consent of any third party to                a change                in control in the Company according to this Agreement are: (a) Those                that                are particularized in Clause 11.1.3 and 11.1.4 below; (b) Some of                the                Lease Agreements require the consent of the lessor to transfer of                control;                (c) The business license in Ramle which will lapse on the date of                transfer                of control to the Seller; (d) The Company’s holdings in Domo, which on the                date of transfer of control in the Company to the Blue Square Group                or to                any interested party therein or to the Supersol Group or any interested                party therein, the obligation will mature of Tiv Taam to purchase                the                Company’s holdings in Domo. |
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|   | 4.22 | The                intellectual property rights of any sort that are owned by the Company,                including patents, designs, trademarks and copyrights, whether registered                or in the process of registration, are set forth in the schedule                attached                to this Agreement as **Appendix                I**. |
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|   |   | To                the best of the Seller’s knowledge and except as stated in the printout                from the Register of Companies in respect of the Company, the Company                is                the owner of the full rights in all the Company’s assets and these assets                are free and clear of any charge and/or attachment and/or any third                party                right, and there are no allegations by any third party in regard                to the                Company’s rights as aforesaid and the force and validity thereof. To the                best of the Seller’s knowledge, there is no impediment to the continued                existence and operations of the Company’s material assets after the date                of closing. The Seller declares that if is claimed by any of the                state                authorities in regard to the obligations secured by charge No. 5                which                appears in the printout from the Registrar of Companies in respect                of the                Company, the Company has been given indemnity in respect thereof                by Koor                Industries Ltd. and Koor Chemicals Ltd. For the avoidance of doubt                it is                clarified that the inability to expunge charge No. 5 which appears                in the                Registrar of Companies printout will not constitute a non-fulfillment                of                the Seller’s undertaking and/or non-cooperation as referred to in the last                part of Clause 6.4 below. |
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|   | 4.23 | The                Company’s assets and its liabilities are covered by insurances which, to                the best of the Seller’s knowledge, are, in the circumstances of the                matter, full and adequate. |
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|   | 4.24 | There                are no legal proceedings or claims of any sort which are pending                against                the Company, no judgments have been given against it which have not                been                executed and no attachments have been imposed on its assets, and                the                Sellers are not aware of any specific cause of action for the institution                of a claim against the Company and/or to involve the Company in legal                proceedings, except as described in **Appendix                J**                and to the best of the Seller’s knowledge no letters of demand have been                received at the Company, except as stated in **Appendix                J**. |
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|   |   | Likewise,                the Company is not a party to any arbitration proceedings, and as                at the                date of signing of this Agreement no legal proceedings are pending                that                were taken by the Company or claims that were instituted by it, except                as                described in **Appendix                J**.                For purposes of this sub-clause “legal proceedings” – includes civil                proceedings, criminal proceedings, private complaints, administrative                proceedings, arbitrations and quassi-judicial proceedings of any                sort. To                the best of its knowledge, no investigations and other examinations                are                being conducted against the Company or the Seller and/or the officers                of                the Company, by competent authorities which pertain to the affairs                of the                Company, and no proceedings are pending against the Seller which                could                affect the Company’s business. |
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|   |   |   |
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|   | 4.25 | To                the best of its knowledge, the officers of the Company and the                corporations controlled by the officers, have no allegations and/or                demands and/or claims of any sort against the Company, directly or                indirectly. The Company is not indebted to the Seller, to the officers                therein, or to corporations controlled by them, for any amounts,                save and                except in accordance with the employment agreements and the counseling                agreements which are mentioned in Appendix                H. |
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|   |   | 4.26 | All                the agreements, whether verbal or in writing, between the Company                and any                of its shareholders or a corporation controlled by any of its                shareholders, or the directors of the Company, or the officers of                the                Company, are as described in Appendix H to this Agreement. It is                clarified                for the avoidance of doubt that the agreements mentioned in Appendix                H                above, include all the payments which are payable by the Company                to any of                its shareholders in respect of services of any sort that are provided                to                the Company by such shareholder. Apart from the matters stated above,                there are no additional agreements or additional understandings,                verbal or                in writing, between the Company and any of its shareholders. The                Seller                declares that as at the date of the signing of this Agreement, it                has                received everything due to it from the Company as at the date of                signing                of the Agreement and it has no monetary or other allegation or claim                in                connection with the providing of services to the Company in excess                of the                payments that are due to it according to the counseling agreement                attached                hereto in Appendix H to this Agreement, up to the date of                closing. |
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|   |   | 4.27 | A                list of all the franchise agreements to which the Company is a party                as at                the date of signing of this Agreement, whether verbal or in writing,                is                attached to this Agreement as **Appendix                K**.                Apart from the aforesaid contracts and agreements, the Company is                not a                party to an agreement or understanding, verbal or in writing, in                connection with the grant or receipt of a franchise, of whatsoever                nature.                The Seller is not aware of any breach, or anticipated breach of any                of the                franchisee agreements or on any impediment and/or difficulty of any                of the                franchisees to comply with their obligations to the Company which                could                lead to a termination of the contractual arrangement with the franchisee                or to a substantial financial loss for the                Company. |
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|   |   | 4.28 | All                the representations set forth above in Clauses 4.7, 4.8, 4.9, 4.15,                4.17,                4.18, 4.24, 4.25 and 4.26 also apply to the Company’s subsidiary                companies, in all respects, *mutatis                mutandis*.                Without derogating from the foregoing, the list of the Company’s                subsidiaries and the Seller’s declarations in regard to them are as set                forth in Appendix                K1. |
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|   |   | 4.29A | To                the best of the Seller's knowledge and examination, all the                representations pursuant to this Agreement are correct, full and                accurate                and there is no misleading particular in                them. |
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|   |   | 4.29B | There                is no material information in the possession of the Seller and/or                the                Company which the Seller and/or the Company have failed to devolve                to the                Purchaser. |
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|   |   | 4.30 | Prior                to the date of the shareholder’s agreement (i.e., April 18, 2005) the                Seller held more than 45% of the voting rights in the                Company. |
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|   |   | 4.31 | The                shareholders agreement was ratified and duly                reported. |
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|   |   | 4.32 | The                shareholders agreement is in full force commencing from the date                of its                signature and will continue to be in force up to the date of                closing. |
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|   |   | 4.33 | It                and Itzhak Mayo (hereinafter – “**Mayo**”)                are the holders (as the term holding is defined in the Securities                Law)                jointly of shares in the Company, and that at the date of signing                of this                Agreement and up to the date of closing the Seller, either jointly                with                Mayo (and/or his relatives – this term is defined in the Companies                Law and/or his nephew) or itself, (by virtue of acquisition of Mayo’s                shares) will uninterruptedly hold more than 45% of the voting rights                in                the Company and will not fall below this percentage. It is clarified                that                if a transfer is made of Mayo’s holdings to his relative and/or to his                nephew, such transfer will be subject to the agreement of the transferee                that the provisions of the shareholders agreement will apply to him                and he                will be deemed to be a party to the shareholders                agreement. |
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|   | All                the declarations and undertakings set forth in this Clause 4, except                those                mentioned in sub-clauses 4.2, 4.4 and 4.5, which are likely to change                solely by virtue of changes which arise (if same arise) from the                conversion of the Company’s convertible debentures (if same are converted)                and/or from the exercise (there is an exercise) of the Company’s warrants                (which will be updated at the date of the closing), will also be                correct                as at the date of closing. |
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| 5. | **Declarations                and undertakings by the                Purchaser** |
|----|----------------------------------------------------------------------------------|

|   | The                Purchaser hereby declares and undertakes to the Seller                that: |
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|   | 5.1 | It                has the financial ability and monetary means which enable it to abide                by                all its obligations pursuant to the provisions of this Agreement                and that                its obligations pursuant to the provisions of this Agreement will                remain                in full force without any reference to any change in the Purchaser’s                commercial condition. |
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|   | 5.2 | It                is aware that Sheshet Chain of Stores for Household Utensils Ltd.                (a                subsidiary of the Purchaser) is at the date of signing of this Agreement                a                material customer of the Company, and that the company Sheshet Chain                of                Stores for Household Utensils Ltd. has been engaged in the field                of                household utensils for some 7                years. |
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|   | 5.3 | The                Purchaser is aware that the Seller is entering into this Agreement                with it                in reliance on the Purchaser’s representations, declarations and                obligations as set forth in this                Agreement. |
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|   | 5.4 | Subject                to the fulfillment of all the conditions precedent, there is no                restriction and/or prohibition and/or impediment according to the                Purchaser’s corporation documents and/or according to the provisions of an                Agreement or any law with regard to its contracting in the scope                of the                provisions of this Agreement and with respect to performing its                obligations pursuant to the provisions                hereof. |
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|   | 5.5 | The                Purchaser’s obligations under this Agreement do not constitute and will                not constitute a breach of an undertaking, prohibition or any restriction                on the Purchaser and/or the shareholders and/or its                officers. |
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|   | 5.6 | 14                days from the signing of this Agreement, the Purchaser’s entering into the                Agreement and performing its obligations pursuant hereto will be                brought                for due approval by its competent organs and this Agreement is subject                to                such approval. |
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|   | 5.7 | Subject                to obtaining the approvals as mentioned in Clause 5.6 above, this                Agreement will constitute a binding and valid legal undertaking of                the                Purchaser, and will be enforceable against it in accordance with                the terms                and conditions hereof. |
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|   | 5.8 | All                the declarations and undertakings set forth in this Clause 5 will                also be                correct as at the date of closing. |
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**The      sale transaction and the consideration**

|   | 6.1 | On                the date of closing and subject to fulfillment of all the conditions                precedent, the Seller undertakes to sell and transfer to the Purchaser,                and the Purchaser undertakes to purchase and to accept transfer from                the                Seller of all the Shares Sold and all the Warrants Sold, including                any                right and/or benefit connected with the Shares Sold and with the                Warrants                Sold, where same are free and clear, which will be against payment                of the                consideration. |
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|   | 6.2 | If                it should become apparent according to the Company’s consolidated and                audited financial statements for the year 2007 that in the period                commencing from July 1, 2007 until December 31, 2007, the Company’s gross                profit exceeded a sum of NIS 27,000,000 (hereinafter – “**the                Total Gross Profit**”),                the Purchaser will pay the Seller an increment to the consideration                within                30 days from publication of the Company’s consolidated and audited                financial statements for the year 2007. If it should become apparent                according to the aforesaid statements that the gross profit for the                aforesaid period (commencing from July 1, 2007 until December 31,                2007)                did not exceed the Total Gross Profit, the Purchaser will not be                entitled                to receive the increment to the consideration and/or any other increment.                It is agreed that in the event of a war during the aforesaid period,                the                arbiter will neutralize the effect of the war and will rule on what                would                have been the Total Gross Profit had it not been for the                war. |
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|   | 6.3 | For                the avoidance of doubt it is clarified that the amount of the                consideration and/or the increment to the consideration are not linked                to                the index and/or to any other linkage                mechanism. |
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|   | 6.4 | The                parties will act in good faith and in cooperation in order to agree                on a                precise mechanism for the encumbrance of the Shares Sold and/or the                Warrants Sold against payment of the consideration, in the course                of                taking cognizance of the demands of the financial institution on                behalf of                the Purchaser in the event that same are demanded. Notwithstanding                the                foregoing, the obtaining of financial funding will not have the effect                of                releasing the Purchaser from its obligations to purchase the Shares                Sold                and the Warrants Sold and/or have the effect of postponing the date                of                closing (beyond what is stipulated in the definition of the date                of                closing), unless receipt of the finance was delayed and/or prevented                by                virtue of the non-fulfillment of the Seller’s obligations under this                Agreement and/or its refusal to cooperate with the demands of the                financial institution. |
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**Dividends      and other distributions**

|   | The                Seller undertakes in its capacity as controlling shareholder in the                Company that the Company will not distribute dividends or make any                other                distribution during the course of the interim period, save and except                the                distribution of the dividend of May 10, 2007, and the amount of the                distribution in accordance with the approval of distribution dated                July                19, 2007, as described in Appendix C to this Agreement, which will                be                declared not later than within 15 days from the signing of this Agreement.                It is clarified that the making of the distribution in accordance                with the                approval for the distribution as aforesaid will not lead to a reduction                in                the amount of the consideration. |
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|   | For                the avoidance of doubt it is clarified that nothing in the foregoing                shall                derogate from the Seller’s undertaking to sell the Shares Sold to the                Purchaser on the date of closing, which will constitute 51.5% of                the                Company’s capital on the basis of a full                dilution. |
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| 8. | **Due                diligence** |
|----|----------------------------------|

|   | The                parties hereby confirm that the Purchaser has not yet performed a                due                diligence accounting examination (including a tax examination) of                the                Company and of all the Company’s subsidiaries (hereinafter –                “**the                Due Diligence Examination**”)                and it is agreed that the Purchaser will complete the performance                of the                Due Diligence Examination as aforesaid within 30 days from the date                of                signing of this Agreement. The Seller undertakes to cooperate with                the                Purchaser in all matters connected with performing the Due Diligence                Examination, and to furnish the Purchaser and its professional consultants                with any document or information which may be requested from it for                purposes of performing the Due Diligence Examination, but subject                to the                provisions of any law and to the obligation for confidentiality as                set                forth in Clause 30 below. |
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| 9. | **Adjustments                in respect of non-conformity in the financial                statements** |
|----|--------------------------------------------------------------------------------------------------------|

|   | 9.1 | In                the event that the Purchaser should find in the Due Diligence Examination                a non-material non-conformity, the amount of the consideration will                be                reduced to an extent equivalent to a multiplication of the difference                between the equity capital reflected by the financial statements                and the                equity capital found in the Due Diligence Examination, multiplied                by the                percentage which the Shares Sold constitute of the Company’s issued and                paid up capital on a full dilution. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.2 | If                the Purchaser finds a material non-conformity in the course of performing                the Due Diligence Examination, each party will be entitled to demand                that                this Agreement be annulled and voided and in such case neither party                will                obtain any right or cause of action by virtue thereof. If the parties                elect to perform the Agreement, the amount of the consideration will                be                reduced to an extent equivalent to a multiplication of the difference                between the equity capital reflected by the financial statements                and the                equity capital which is found in the Due Diligence Examination multiplied                by the percentage which the Shares Sold constitute of the Company’s issued                and paid up capital on a full                dilution. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.3 | If                the parties fail to agree on the amount of the material non-conformity                or                the non-conformity which is not material, and/or for purposes of                determining whether there was a deviation between the equity capital                reflected by the financial statements and the actual situation and/or                whether there is an exposure to tax as stated in the definition of                a                material non-conformity or a non-conformity which is not material,                the                arbiter will determine whether there has been a material non-conformity                or                a non-conformity which is not material, and he shall fix the amount                and                the extent of the non-conformity. |
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| 10. | **The                Sellers’ obligations during the Interim Period** |
|-----|-----------------------------------------------------------------------------|

|   | 10.1 | It                will not exercise the Warrants                Sold. |
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|   | 10.2 | In                   its capacity as a holder of securities of the Seller it will act                in order                that the Company be managed and conducted in the ordinary course                of                business according to law and in keeping with the Company’s policy prior                to the signing of this Agreement, that no material resolutions will                be                passed in the Company which have the effect of materially altering                the                state of affairs of the Company as compared with the conditions on                the                date of signing of this Agreement (including and without derogating                from                the generality of the foregoing, extending an agreement of sublease),                that                it will not perform any act which is not in the ordinary course of                the                Company’s business, including and *inter                alia*                and without derogating from the generality of the foregoing, a                distribution of dividends, bonus shares or other rights, apart from                completing the operations as described in Appendix C, provided that                the                best interests of the Company will not be adversely affected by virtue                of                this undertaking (but in relation to this last qualification, without                this                derogating from the obligations of the Seller and from the rights                of the                Purchaser pursuant to this                Agreement). |
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|   | 10.3 | In                its capacity as a shareholder they [sic] will take steps in order                that the                Company will not materially alter its cadre of employees or the terms                of                their employment. |
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|   | 10.4 | The                Company will not pay any payments (a) to their shareholders or to                interested parties therein (except in accordance with the provisions                of                the existing agreements with them at the date of signing of this                Agreement) and (b) to the officers (except according to the provisions                of                the existing agreements with them at the date of signing of this                Agreement). |
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|   | 10.5 | In                its capacity as a shareholder it will act in order that no change                will                take place in the structure of the Company’s capital (apart from an                allotment of shares as a result of a conversion of the convertible                debentures or as a result of the exercise of warrants and except                pursuant                to the approval for distribution dated July 19, 2007 as described                in                Appendix C to this Agreement), unless this is required by virtue                of the                provisions of a law. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.6 | It                will continue to pass on to the Purchaser all the information, the                data,                the documents and the material particulars required by the Purchaser                in                order to verify that between the date of signing of this Agreement                and the                Date of Closing there have been no materially adverse changes and                the                activities of the Company or in its financial and/or business condition                and/or in the Seller’s rights in and to the Shares Sold and/or in and to                the Warrants Sold. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.7 | It                will not conduct negotiations with any third party for executing                a                transaction which conflicts with the transaction which is the subject                of                this Agreement and will not enter into any contractual arrangement                which                has the effect of preventing consummation of the transaction which                is the                subject of this Agreement. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 10.8 | It                will take steps in order to obtain the consents of third parties                which are                required for the transfer of control in the Company, including consents                of                lessors to the extent necessary. It is clarified that the failure                to                obtain consents from lessors shall not be deemed to be a breach of                this                Agreement, except the failure to obtain the consent of the lessor                Shmei                Bar (F.R.) 1993 Ltd. and Nesher Israel Cement Works Ltd. pursuant                to an                agreement dated September 20, 2000 and the addendums thereto, which                will                constitute a material breach. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10A | The                parties undertake to file merger notices for purposes of the obtaining                the                approval of the Commissioner to the transaction that is the subject                of                this Agreement by not later than August 16, 2007, provided that the                conditions precedent specified in Clause 11.1.7 is fulfilled, and                without                this constituting an extension of the time prescribed in that                clause. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | **Conditions                precedent** |
|-----|-----------------------------------------|

|   | 11.1 | The                validity of this Agreement is contingent upon the fulfillment of                all the                conditions precedent set forth in this Clause 11, as follows: |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.1.1 | No                material non-conformity (as defined above) will be discovered in                the due                diligence examination which the Purchaser will                conduct. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.1.2 | Obtaining                of all the regulatory approvals, which will not be contingent upon                conditions or exceptions. If the Commissioner’s approval is made subject                to conditions, the parties will act in order to fulfill the conditions,                provided that compliance with such conditions shall not adversely                affect                or alter the businesses of any of the parties and/or of their obligations                to third parties. For these purposes the Purchaser’s side will also be                deemed to include the group to which the Purchaser belongs or any                of the                bodies corporate included in that group. If the transaction is approved                by                the Commissioner subject to qualifications, which do not have the                effect                of materially altering this transaction or of adversely affecting                or                altering the businesses of any of the parties and/or of their obligations                to third parties, the parties will perform this Agreement subject                to such                conditions or qualifications. If the approval is made subject to                conditions which in the opinion of the Purchaser are onerous on the                parties or on the Company, then and in such event the parties will                do                their best to achieve the cancellation of such onerous conditions,                which                shall be done by not later than the deferred date for fulfillment                of the                conditions precedent. If the parties do not succeed in canceling                the                onerous conditions by not later than the deferred date for fulfillment                of                the conditions precedent, then and in such event, this Agreement                shall be                treated as null and void and none of the parties will derive any                right or                cause of action on the strength of this                Agreement. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 11.1.3 | Written                approval has been received from Bank Otzar Hahayal Ltd. and the Israel                Discount Bank Ltd. for the transfer of control in the                Company. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.1.4 | Written                approval has been obtained from Excellence for removal of the charge                from                the Shares Sold and from the Warrants Sold which are owned by                Assets. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.1.5 | Obtaining                consent of the Lessor Shmei Bar (F.R.) 1993 Ltd. and Nesher Israel                Cement                Works Ltd. pursuant to an agreement dated September 20, 2000 together                with                the addendums thereto, for the transfer of control in the Company                in                accordance with this Agreement. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.1.6 | No                adverse material change has occurred in the business of the Company                and/or                in its assets and/or in its activities (hereinafter: “Adverse Material                Change”) of the existence of which the Purchaser, after the matter has                been brought to its attention by the Seller, has not pardoned. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.1.7 | Obtaining                due approval of the Purchaser’s competent organs to its entering into this                Agreement and performing its obligations in accordance with the provisions                hereof, at the latest within 14 days from the date of signing of                this                Agreement. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.2 | The                parties will act diligently and industriously in order to obtain                the                approvals set forth in sub-clauses 11.1.1 – 11.1.6 above within sixty                (60) days from the date of signing of this Agreement (hereinafter:                **“the                Date for Fulfillment of the Conditions Precedent”**). |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.3 | Notwithstanding                the contents of Clause 11.1.7 above, if confirmation in writing is                not                delivered to the Seller stating that approval has been obtained from                the                Purchaser’s competent organs to its entering into this Agreement and                performing its obligations pursuant to the provisions hereof within                14                days from the date of the signing of this Agreement, then the Agreement                will be cancelled and no party will have any complaint and/or demand                against the other. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 11.4 | If                notwithstanding the efforts of the parties all the conditions precedent                are not fulfilled up to the Date for Fulfillment of the Conditions                Precedent, then and in that event the Date for Fulfillment of the                Conditions Precedent will be postponed for an additional period of                thirty                (30) days (**“the                Deferred Date for the Fulfillment of the Conditions Precedent                ”**). |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.5 | If                notwithstanding the efforts of the parties all the conditions precedent                are not fulfilled up to and not later than the Deferred Date for                the                Fulfillment of the Conditions Precedent, then and in such event,                this                Agreement shall be treated as null and void and none of the parties                will                obtain any right or cause of action on the strength of this Agreement.                Notwithstanding the foregoing, in the case of a conflict between                the                Deferred Date for the Fulfillment of the Conditions Precedent and                the Date                of Closing, and *vice                versa*,                this Agreement will lapse on the later of the aforesaid                dates. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12. | **Actions                by the parties on the Date of Closing** |
|-----|------------------------------------------------------------------|

|   | 12.1 | On                the Date of Closing at 10:00 a.m. the parties will meet at the office                of                attorneys Confino, Luchtenstein & Co., at Azrieli Center,                38th                floor of the Circular Tower, and will at one and the same time act                to                perform all the following                operations: |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.1.1 | All                the approvals referred to in Clause 11 above will be exhibited to                the                parties. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------|

|   | 12.1.2 | A                calculation shall be made of the Shares Sold in order to verify that                they                represent 51.5% of the Company’s capital on the basis of a full                dilution. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.1.3 | The                shareholders agreement as mentioned in Clause 4.14 above will be                cancelled                and a confirmation of the parties to the shareholders agreement to                the                effect that the shareholders agreement has been cancelled shall be                exhibited. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.1.4 | A                non-competition undertaking of Itzhak Mayo in the text of **Appendix                M**                to                this Agreement shall be delivered. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.1.5 | The                Seller shall cause a situation that the Shares Sold will be transferred                from the Seller’s securities account to the Purchaser’s securities account                the details of which it will furnish to the Seller not later than                three                (3) days before the Date of                Closing. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.1.6 | The                Purchaser shall pay the Seller the amount of the Consideration by                way of a                bank check or a bank transfer (confirmed) to the Seller’s bank account,                the details of which the Seller will furnish to the Purchaser not                later                than three (3) days before the Date of                Closing. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 12.1.7 | The                Seller shall deliver to the Purchaser and the Purchaser shall deliver                to                the Seller resolutions of its competent                bodies. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.1.8 | The                Seller shall furnish a written approval regarding cancellation of                the                management agreement between it and the Company dated January 1,                2005,                commencing from the Date of Closing, which contains confirmation                in regard                to there being no claims and demands in connection with the aforesaid                agreement. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.1.9 | All                the directors, apart from the external directors, shall resign from                their                office as members of the board of directors of the Company and shall                confirm in writing that they do not have and will not have claims                or                allegations of any sort against the Company, and directors who will                be                proposed by the Purchaser will be appointed in their stead to the                Company’s board of directors. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.1.10 | The                Seller shall deliver to the Purchaser a document in the text of                **Appendix                L**                pursuant to which the Seller will confirm and declare that to the                best of                its knowledge no adverse material changes have taken place in the                Company                and/or in its businesses and/or in its activities and/or in its financial                condition and/or in its assets in the period from the date of signing                of                this Agreement and up to the Date of Closing, and that all the Seller’s                representations are correct as at the Date of Closing as if given                at that                date. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | 12.1.11 | All                the relevant notices and reports which the parties and the Company                are                obliged to file in accordance with the provisions of any law will                be                submitted. The text of the notices will be coordinated in advance                by the                parties. |
|--------|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.2 | All                the acts that will be performed on the Date of Closing will be deemed                to                have been performed simultaneously. No separate act will be deemed                to have                been perfected, and no single document will be deemed to have been                delivered, until all the acts at that time have been completed and                all the                documents delivered. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13. | **Indemnity                obligation** |
|-----|-----------------------------------------|

|   | 13.1 | The                Seller undertakes to indemnify the Purchaser and/or the Company and                to                hold them harmless in respect of any damage and/or loss and/or shortage                and/or deficit and/or expenses that may be incurred by the Purchaser                and/or the Company, as the case may be, with this being after the                obtaining of an absolute judgment on which there is no appeal                (hereinafter: **“Damage”**)                (where the identity of the indemnified party will be according to                the                Purchaser’s decision in writing) in respect of one or more of the                following events: |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | **General                breach of                representations** |
|--------|--------|---------------------------------------------------------------------|

|   | 13.1.1 | Any                breach and/or inaccuracy in any of the representations and/or the                declarations of the Seller. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------|

|   |   | **Breach                of financial statements                representations** |
|--------|--------|----------------------------------------------------------------------------------|

|   | 13.1.2 | In                every case in which it transpires, but not later than the end of                33 months                from the Date of Closing and subject to Clause 13.5 below, that the                financial statements and/or the financial statements of the Company’s                subsidiaries (hereinafter: **“the                Expanded Financial Statements”**)                are incorrect and/or are inaccurate and/or are incomplete according                to the                law and in accordance with the accounting principles which applied                / apply                at the time they were drawn up, and excluding adjustments that will                be                made in the Expanded Financial Statements for purposes of their being                drawn up in accordance with international accounting standards (IFRS),                and                including in an event in which monetary debts and/or monetary payments                have been imposed on the Company which originate and/or the cause                of                action for which preceded the Date of Closing and in respect of which                full                provision was not made in the Expanded Financial Statements or there                was                no separate express disclosure thereof in this Agreement or in the                appendices hereto. The principle for indemnity in accordance with                this                sub-clause shall be restoration of the Company (on a consolidated                basis)                and/or the Purchaser to the position in which they would have been                had the                Expanded Financial Statements been correct and                complete. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.1.3 | If                the parties do not agree on the amount of the deviation, and for                purposes                of determining whether a conflict exists between the Expanded Financial                Statements and the actual situation and the extent thereof, the arbiter                shall decide whether there is a non-conformity as between the Expanded                Financial Statements and the Expanded Financial Statements that there                ought to have been, and if there was such non-conformity, the monetary                extent thereof and the financial significance of each non-conformity                shall                be calculated separately, and the cumulative amounts of the deviation                shall be referred to above and below as **“Amount                of the Deviation”**. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**General**

|   | 13.2 | The                amounts of the indemnity that will be paid to the Purchaser and/or                to the                Company in respect of Damage and/or loss and/or shortage and/or deficit                and/or an expense incurred by the Purchaser and/or the Company, shall                be                paid according to the Purchaser’s *pro                rata*                percentage holdings of the issued and paid-up share capital of the                Company                at the Date of Closing. In addition, if as a result of any grounds                for                indemnity as set forth above, the Purchaser is obliged to compensate                and/or indemnify third parties to whom the Purchaser has transferred                shares in the Company, the Sellers shall, severally and not jointly,                indemnify the Purchaser in addition in the full amount of the indemnity                to                the third parties. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|

|   | 13.3 | The                Seller declares and undertakes that under all circumstances it will                not be                entitled to any right of recourse against the Company with any claim                and/or allegation in respect of the indemnity required from it in                accordance with the provisions of this Clause                13. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.4 | It                is agreed that in the event that any of the amounts of indemnity                for which                the Seller is liable pursuant to this Agreement is covered and/or                actually                paid by an insurance company and/or any third party, the Seller will                not                be required to pay those portions which are actually paid by an insurance                company and/or any third party, provided that the Seller has not                conferred                on the insurance company and/or the third party a right of subrogation                or                of recourse to the purchasing party and/or the Company. The amount                of the                indemnity as stated in this Agreement is an additional layer to the                insurance cover. It is agreed, that prior to an approach being made                to the                Seller pursuant to this Agreement, the Seller and/or the Company                will                apply to the insurance company for purposes of their damage being                made                good, but it shall be sufficient for the Seller’s claim being rejected by                the insurance company in order to enable the Seller [sic – the                Purchaser] to demand indemnity from the Seller without the necessity                for                conducting legal proceedings against the insurance                company. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.5 | It                is agreed that if the cumulative damage does not exceed NIS 500,000,                the                Purchaser will not be entitled to any payment in accordance with                this                clause. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.6 | It                is hereby clarified that the validity of the Seller’s representations                above will be in force for a period of 33 months only from the Date                of                Closing. After the elapse of this period, this clause will not apply                to                such representations, and the Purchaser will derive no right to indemnity                in respect thereof. Notwithstanding the foregoing, the validity of                the                Seller’s representations in Clauses 4.1, 4.6, 4.12, 4.13, 4.16, 4.25,                4.29B, 4.30, 4.31, 4.32 and 4.33 all the Seller’s remaining                representations will be in force according to any                law. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 13.7 | Notwithstanding                anything stated in this Clause 13, it is clarified that the amounts                of                indemnity that will be paid to the Purchaser (if and to the extent                that                same are paid) by the Seller, shall under no circumstances exceed                the                amount of the Consideration. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14. | **Insurance                arrangements and indemnity** |
|-----|---------------------------------------------------------|

|   | 14.1 | Commencing                from the Date of Closing, the Purchaser in its capacity as the holder                of                control in the Company and subject to the provisions of any law,                shall                cause a situation that during a period of up to the end of seven                (7) years                from the Date of Closing, the officers as defined in the Companies                Law who                have served in the Company at any time during the 7 years which preceded                the Date of Closing (**“Officers                who have Retired”**)                will be insured in the scope of the officers liability insurance                in                respect of claims that are instituted for the first time against                any of                them during the insurance period (“claims made”) in connection with acts                performed by them in the scope of their function as officers during                a                period of seven years preceding the Date of Closing in a valid policy                for                insurance of liability of officers (**“the                Insurance Policy”**),                or in a run-off insurance policy, at the election of the Company,                the                extent of the cover pursuant to which shall not be less than the                extent of                the insurance cover in the policy for insurance of liability of officers                that exists at the date of signing of this Agreement or to an extent                of                cover which is not less than the extent of the insurance cover which                will                be effected in respect of the liability of officers who serve in                the                Company after the Date of Closing – at the election of the Company                (provided that the limits of liability in the insurance that will                be                effected shall not be less than 5,000,000 US dollars), including                cover for                a retroactive period of seven (7) years previous. At the Seller’s request                copies of the Insurance Policies will be delivered to                it. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 14.2 | Commencing                from the Date of Closing, the Purchaser, in its capacity as holder                of                control in the Company and subject to the provisions of any law,                undertakes to cause a situation that the deeds of indemnity that                have been                given by the Company to Officers who have Retired, will not be altered                and                will not be cancelled and that the Company will act in accordance                with the                provisions of the deeds of indemnity, to the extent that same relate                to                events that occurred prior to the Date of                Closing. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 14.3 | The                status of the provisions of this Clause 14 shall have the status                of the                creation of a right in favor of a third party, namely: the Officers                who                have Retired. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15. | **Agreed                compensation** |
|-----|----------------------------------------|

**“the      Agreed Damages”**

| 16. | **General                undertaking to perform acts and to sign documents** |
|-----|------------------------------------------------------------------------------|

| 17. | **Taxes** |
|-----|-----------|

|   | 17.1 | Any                tax or other levy, if and to the extent that same applies by virtue                of the                provisions of any law on a seller of securities, shall be borne by                the                Seller. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 17.2 | Any                tax or other levy, if and to the extent that same applies by virtue                of the                provisions of any law on a buyer of securities, shall be borne by                the                Purchaser. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18. | **Good                faith** |
|-----|-------------------------------|

----

| 19. | **Headings                to clauses** |
|-----|----------------------------------------|

| 20. | **Drafts                and deletions** |
|-----|-----------------------------------------|

|   | 20.1 | Drafts,                charts, presentations, declarations and other documents that have                been                exchanged between the parties prior to signing of this Agreement                shall be                deemed never to have been made and shall not serve in any manner                or form                as evidence or support for interpretation and/or for a                claim. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 20.2 | If                there are deletions in any of the provisions of this Agreement alongside                which the parties have signed, the words that are the subject of                the                deletions shall be deemed never to have been written and it shall                not be                possible in any circumstances, conditions and situation, to rely                on the                words that are the subject of the deletions, including for purposes                of                interpreting this Agreement. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21. | **Non-waiver                of rights** |
|-----|-----------------------------------------|

| 22. | **Alteration                and amendment of the Agreement** |
|-----|--------------------------------------------------------------|

----

| 23. | **The                arbiter** |
|-----|--------------------------------|

| 24. | **Mediation** |
|-----|---------------|

|   | 24.1 | Any                disputes that may arise between the parties in connection with the                interpretation, implementation, performance, validity, voidness,                enforcement of this Agreement and anything arising from this Agreement                which has not been referred for the decision of the arbiter, and                prior to                the parties referring to traditional tribunals, the parties will                take                steps to achieve a resolution of the disputes that may arise between                them                through the mediator. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 24.2 | The                parties undertake to cooperate with the mediator, to act in the ordinary                course and in good faith and to do everything in their power to achieve                an                agreed resolution of the disputes through the                mediator. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 24.3 | If                the parties do not succeed in reaching an agreed resolution of the                disputes through the mediator, the parties will be entitled to refer                to                the competent court as mentioned in Clause 25 below, which will have                sole                and exclusive jurisdiction to adjudicate and decide on the                lawsuit. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 24.4 | It                is clarified that referral by the parties to mediation and/or the                fact of                one of the parties applying to the court (in the event that the mediation                process is unsuccessful as aforesaid) does not release the parties                from                performance of their obligations in accordance with this                Agreement. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25. | **Jurisdiction** |
|-----|------------------|

| 26. | **Deductions                of tax at source**  |
|-----|------------------------------------------------------|

----

| 27. | **Entire                agreement** |
|-----|-------------------------------------|

| 28. | **Intertwined                stipulations** |
|-----|---------------------------------------------|

| 29. | **Prohibition                on transfer of rights and obligations** |
|-----|----------------------------------------------------------------------|

| 30. | **Confidentiality** |
|-----|---------------------|

|   | 30.1 | The                Purchaser undertakes, in the period until the Date of Closing, that                it,                its employees and anyone acting on its behalf, will not at any time                make                any use of any know-how or information of whatsoever nature, including                professional and/or trade secrets, which are connected with the Company,                except for the benefit of the                Company. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 30.2 | The                parties undertake to keep absolutely confidential all the conditions,                stipulations, agreements, restrictions, rights and obligations contained                in this Agreement, provided that each party will be entitled to disclose                same to its consultants and advisors. Notwithstanding the contents                of this                clause, the parties will be entitled to pass on and/or to disclose                any                know-how or information if they require same for purposes of instituting                legal proceedings and/or if they are called upon to do so in accordance                with the provisions of any law and in particular in accordance with                the                provisions of the Securities Law and/or if they are called upon to                do so                by a competent authority according to law, including the Securities                Authority and/or the Stock Exchange, all in relation to information                or                particulars required according to the provisions of the law and/or                which                are demanded from the party concerned by such authority, and to the                extent                to which it has been called upon to furnish or disclose                same. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 30.3 | Each                of the parties undertakes that if the contractual arrangement covered                by                this Contract is cancelled, then it, its employees and representatives                will maintain absolute secrecy and will refrain from divulging and/or                exhibiting and/or transferring in any manner, directly or indirectly,                whether themselves or through others, including anyone acting on                their                behalf, any professional, trade or other information, which is not                part of                the public domain and/or has not passed into the public domain, in                connection with the activities of the other party and/or any information                about the other party, and will not make any use of the aforesaid                information in any way whatever, unless disclosure of the information                is                demanded by virtue of the provisions of any law or according to a                demand                of a competent authority. In addition, all the documents, the                correspondence and any information of any sort that has been transferred                between the parties within the scope of this contractual arrangement,                shall be returned by each party to the other within 7 days from                cancellation of the contractual arrangement for any                reason. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31. | **Non-competition** |
|-----|---------------------|

|   | 31.1 | The                Seller undertakes that commencing from the Date of Closing and until                the                elapse of a period of two years from that date, it will not compete,                directly or indirectly, with the activities of the Company and/or                with any                of its businesses and/or with any of its activities as same apply                at the                date of signing of this Agreement. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Without                derogating from the contents of Clause 31.1 above, the Seller undertakes                that commencing from the Date of Closing and until the elapse of                three                years from that date, it will not contract, directly or indirectly,                with                Passabache and/or Vidro Ecologico for the supply of their products                in                Israel and that it will deliver to the Purchaser an identical undertaking                on the Date of Closing (with respect to Clause 31.2 only) as against                the                Company from Mr. Itzhak Mayo which will be attached to this Agreement                as                **Appendix                M**. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32. | **Notices** |
|-----|-------------|

| 33. | **Addresses                and changes** |
|-----|------------------------------------------|

----

**In      witness whereof the parties have hereunto signed**

**at      the place and on the date mentioned at the head hereof:**

| **The                Seller:** |   | **(                - )**  **(                - )**             |   | **The                Purchaser:** |   | **(                - ) Kfar Hasha'ashuim****Central                Warehouse Ltd.** |   |
|--------------------------------|--------|--------------------------------------------------------------------------|--------|-----------------------------------|--------|-------------------------------------------------------------------------------------|--------|
|                           |   | **Eldar                Gil & Mahoney****Assets                Ltd.** |   |                              |   | **Kfar                Hasha'ashuim****Central                Warehouse Ltd.**       |   |

----

**ADDENDUM          TO AGREEMENT DATED AUGUST 2, 2007**

**MADE          AND ENTERED INTO AT TEL AVIV ON THE 25**
**TH**

**          DAY OF SEPTEMBER 2007**

**BETWEEN:**

**ELDAR          GIL & MAHONEY ASSETS LTD.**

**Eldar          Assets**
**the          Seller**

**KFAR          HASHA'AHUIM CENTRAL WAREHOUSE LTD.**

**the          Purchaser**

| **WHEREAS** | on                    August 2, 2007, the Seller and the Purchaser (hereinafter collectively:                    “**the                    Parties**”)                    signed an agreement pursuant to which the Seller would sell to                    the                    Purchaser control in the company Naaman Porcelain Ltd., Publ.                    Co.                    520044389 (hereinafter: “**Naaman**”                    and “**the                    Basic Agreement**”)                    and |
|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **WHEREAS** | the                    condition precedents for implementation of the Basic Agreement                    which are                    set forth in this Addendum have been fulfilled as at the date                    of signing                    of this Addendum; and |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **WHEREAS** | the                    Purchaser has completed the performance of the due diligence                    examination                    (as this term is defined in the Basic Agreement);                    and |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **WHEREAS** | in                    accordance with the foregoing and subject to fulfillment of all                    the                    conditions precedent and the provisions set forth in this Addendum,                    there                    is no bar or impediment to the consummation of the sale transaction                    and                    fixing the date of closing; and |
|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **WHEREAS** | the                    parties wish to specify the conditions precedent and the actions                    which                    remain to be performed at the date of closing and to add a number                    of                    provisions to the existing provisions in the Basic Agreement,                    as more                    fully described below in this Addendum (hereinafter: “**the                    Addendum**”); |
|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Now          therefore it is agreed, declared and stipulated by the parties as          follows:**

| 1.     | **Preamble**                                                                                      |
|--------|---------------------------------------------------------------------------------------------------|
|   |                                                                                              |      |
|   | 1.1                                                                                               | The                    terms appearing in this Addendum will have the same meaning ascribed                    to                    them in the Basic Agreement. |
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|   | 1.2                                                                                               | The                    provisions of the Basic Agreement will continue to apply to the                    parties                    and to the binding on them strictly according to the letter thereof,                    except to the extent that same have been expressly altered in                    this                    Addendum and to the extent so altered. |
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| 2.     | **Due                    Diligence Examination**                                                  |
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|   | 2.1                                                                                               | The                    Purchaser declares that it has completed the carrying out of                    the due                    diligence examination and it did not discover any material non-conformity,                    but according to its contention it did discover a non-conformity                    which is                    not material, and the Purchaser waives the rights conferred on                    it under                    Clause 9.1 of the Basic Agreement in connection with the aforesaid                    non-conformity which is not material. |
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|   | 2.2                                                                                               | Since                    as stated in Clause 2.1 no material non-conformity was found                    and the                    Purchaser waives its rights in accordance with Clause 9.1 of                    the Basic                    Agreement in relation to the non-conformity which is not material                    that was                    found by it according to its contention, in the due diligence                    examination,                    the parties absolutely and irrevocably waive their rights as                    set forth in                    Clause 9 of the Basic Agreement. |
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| 3.     | **Additional                    interest - purchase of additional                    securities** |
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|   | 3.1                                                                                               | In                    addition to payment of the consideration, the Purchaser undertakes                    to pay                    interest at a rate equivalent to the rate of interest in the                    finance                    agreement between the Purchaser and an entity which provides                    it with                    finance for purposes of payment of the consideration (**“the                    Finance Agreement**”)                    in respect of the amount of the consideration (NIS 97,000,000),                    for the                    period from the date of signing of this Addendum and up to the                    date of                    closing (hereinafter: “**Addition                    of Interest**”).                    Notwithstanding the foregoing, it is agreed that if it is stipulated                    in                    the Finance Agreement that the finance will be linked to an index                    and the                    index goes down in the period from the date of signing of this                    Addendum                    and up to the date of closing, the Addition of Interest will                    not be                    effected thereby - in other words, the Addition of Interest will                    be linked                    to the index only if the index                    rises. |

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|   | 3.2                                                           | In                    addition and subject to the Purchaser’s notice that will be given not                    later than 3 days before the date of closing, the Purchaser is                    given an                    option to purchase from the Seller an additional quantity of                    123,646                    ordinary shares of NIS 1 par value and 14,046 warrants (Series                    2)                    (hereinafter: “**the                    Additional Securities**”)                    in consideration for payment of a sum of NIS 2,753,840 (hereinafter:                    “**the                    Option Consideration**”),                    all within the time and on the conditions set forth in this Addendum                    (hereinbefore and hereinafter: “**the                    Option**”). |
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| 4.     | **The                    sale transaction and consideration** |
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|   | 4.1                                                           | On                    the date of closing the Seller undertakes to sell and transfer                    to the                    Purchaser and the Purchaser undertakes to purchase the quantity                    of the                    Shares Sold, including any right and/or benefit connected with                    the                    quantity of the Shares Sold, where same are free and clear, with                    this                    being against payment of the consideration and the Addition of                    Interest.                                                                                                                                                                                                                                                                                                                                            |
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|   | 4.2                                                           | If                    the Purchaser exercises the option, then on the date of closing                    the Seller                    undertakes to sell and transfer to the Purchaser, and the Purchaser                    undertakes to purchase the quantity of the Shares Sold and the                    Additional                    Securities, including any right and/or benefit connected with                    the quantity                    of the Shares Sold and the Additional Securities, where same                    are free and                    clear, against payment of the consideration, the Option Consideration                    and                    the Addition of Interest.                                                                                                                                                                                   |
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| 5.     | **Fulfillment                    of conditions precedent**    |
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|   | 5.1                                                           | The                    conditions precedent for implementation of the Basic Agreement                    as set                    forth below have been fulfilled at the date of signing of this                    Addendum,                    and are attached as appendices to this Addendum in accordance                    with the                    following details:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
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|   | 5.1.1                                                         | As                    stated in Clause 2 above, no material non-conformity was discovered                    in the                    due diligence examination carried out by the Purchaser.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
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|   | 5.1.2                                                         | The                    Purchaser declares that due approval has been obtained from the                    competent                    organs of the Purchaser for its entering into the Basic                    Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
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|   | 5.1.3                                                         | Approval                    from the Commissioner which is contingent upon the sale of all                    Naaman’s                    holdings in Domo Ltd. (“**Domo**”)                    is attached as **Appendix                    A1**.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
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|   | 5.1.4                                                         | Written                    approval of Bank Otsar Hahayal Ltd. to the transfer of control                    in Naaman,                    is attached as **Appendix                    A2**.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

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|   | 5.1.5                                                                                                                                                                                            | Written                    approval of Excellence to the removal of the charge over the                    Shares Sold                    and over the Warrants Sold which are owned by the Seller, is                    attached as                    **Appendix                    A3**.                    In regard to this approval and implementation of the matters                    stated                    therein the parties will also act as stipulated in Clause 6.4                    of the Basic                    Agreement. |
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|   | 5.1.6                                                                                                                                                                                            | Consent                    of the lessor Shmei Bar (F.R.) 1993 Ltd. and Nesher Israel Cement                    Works                    Ltd. in accordance with an agreement dated September 20, 2000,                    and the                    addendums thereto, to the transfer of control in Naaman, is attached                    as                    **Appendix                    A4**.                                                                                                                                               |
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|   | 5.1.7                                                                                                                                                                                            | A                    letter of consent regarding cancellation of the shareholders                    agreement                    mentioned in Clause 4.14 of the Basic Agreement, is attached                    as                    **Appendix                    A5**.                                                                                                                                                                                                                                                                           |
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|   | 5.1.8                                                                                                                                                                                            | An                    undertaking for non-competition from Yitzhak Mayo valid from                    the date of                    closing, is attached as **Appendix                    A6**.                                                                                                                                                                                                                                                                                                                                                      |
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|   | 5.1.9                                                                                                                                                                                            | Confirmation                    regarding cancellation of the management agreement between the                    Seller and                    Naaman, in force from the date of closing, is attached as **Appendix                    A7**.                                                                                                                                                                                                                                                                                                         |
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|   | 5.1.10                                                                                                                                                                                           | A                    resolution of the board of directors of the Seller is attached                    as                    **Appendix                    A8**.                                                                                                                                                                                                                                                                                                                                                                                      |
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| 6.     | **The                    conditions precedent required to be fulfilled up to the date                    of closing                    and actions by the parties at the date of closing**  |
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|   | The                    conditions precedent, the actions and the obligations which remain                    to be                    performed at the date of closing are as follows:           |
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|   | 6.1                                                                                                                                                                                              | The                    Seller shall exhibit to the Purchaser written confirmation from                    Naaman                    evidencing the sale of all its holdings in Domo as required under                    the                    Commissioner’s approval.                                                                                                                                                                                                                                                                        |
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|   | 6.2                                                                                                                                                                                              | The                    Seller shall exhibit to the Purchaser confirmation from the Seller’s                    attorneys that “Naaman” as defined in the Commissioner’s approval has                    complied with the conditions set forth in the Commissioner’s                    approval.                                                                                                                                                                                                                       |
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|   | 6.3                                                                                                                                                                                              | The                    Purchaser shall exhibit to the Seller written confirmation that                    commencing                    from the date of closing, in its capacity as controlling shareholder                    in                    “Naaman”, it will comply with the conditions set forth in the                    Commissioner’s approval.                                                                                                                                                                     |
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|   | 6.4                                                                                                                                                                                              | A                    calculation shall be made of the Shares Sold as specified in                    Clause 12.1.2                    of the Basic Agreement.                                                                                                                                                                                                                                                                                                                                                                                         |

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|   | 6.5    | An                    approval shall be furnished from Israel Discount Bank Ltd. (**“Discount**”)                    for transfer of control in Naaman, within the framework of which                    there                    will be no restriction in connection with the Shares Sold, including                    in                    restriction on pledging of Shares Sold and consent will be given                    to the                    pledging thereof to another entity, except in the event that                    at the date                    of closing Naaman does not have accounts at Discount and the                    deeds of                    undertaking of Naaman and the Seller to Bank Discount will not                    be in force                    accordingly at the date of closing.                                                                                                                                                                                                                                                                                                                                                                                                                                              |
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|   | 6.6    | The                    Purchaser shall pay the Seller the consideration, the Addition                    of Interest                    and if it exercises the Option then the Option Consideration                    will be                    payable, as stated in Clause 3 and 4 above. The payments will                    be effected                    by way of a deposit to account 44309 of the Seller which is conducted                    at                    Excellence Nessuah Stock Exchange Services Ltd.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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|   | 6.7    | The                    Seller will cause a situation that the quantity of the Shares                    Sold and the                    Additional Securities (to the extent that the Purchaser exercises                    the                    Option as aforesaid) will be transferred from the Seller’s securities                    account to the securities account of the Purchaser, the details                    of which                    the Purchaser will notify the Seller by not later than October                    28,                    2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
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|   | 6.8    | All                    the directors, apart from the external directors, shall resign                    from their                    office as members of the board of directors of Naaman and will                    confirm in                    writing that they do not have and will not have claims or allegations                    against the Company, and in their place the directors who will                    be proposed                    by the Purchaser will be appointed to the board of directors                    of Naaman                    (hereinafter: “**the                    Proposed Directors**”).                    Without derogating from the foregoing, and in addition, the Purchaser                    undertakes that after performing of the closing, it will act                    in its                    capacity as controlling shareholder in the Company so that the                    agenda of                    the general meeting (as this term is defined in the Companies                    Law,                    5759-1999) which will be called for the first time after the                    date of                    closing, will include the appointment of the Proposed                    Directors. |
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|   | 6.9    | The                    Seller will deliver to the Purchaser a document in the text of                    **Appendix                    L**                    to                    the Basic Agreement (no adverse changes in Naaman).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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|   | 6.10   | All                    the relevant notices and reports which apply to the parties will                    be given                    by way of prior co-ordination.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

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**Date          of closing**

**In          witness whereof the parties have hereunto signed**

**at          the place and on the date written above.**

| (-)                                                        |                     | (-)                                              |
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|                                                       |      |                                             |
| __________________________________                         |                     | _____________________                            |
| **Eldar                    Gil & Mahoney Assets Ltd.** |                     | **Kfar                    Hasha'ashuim Central** |
|                                                       |                     | **Warehouse                    Ltd.**            |