| 1. | The      parties agree to purchase the “Property Sold” from the      “Sellers” (as      these terms are defined in the “Sale Agreements”, as      defined below), in equal shares between them (50% - 50% of the rights and      obligations), all in the manner, in the ways of incorporation and subject      to what is set forth below in this Document of  Principles. |
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| 2. | For      purposes of purchasing the Property Sold, the “Housing Company” and      “the Mall      Company”, as defined below, will contract with the Sellers under      the Sale Agreements, the Construction of Public Buildings Contract,      including the appendices thereto, in the text and on the conditions as      shall be agreed with the Sellers on the basis of the drafts attached      hereto as Appendix      A (the Construction Contract and the Sale Agreements will      henceforth be referred to as – “the Sale      Agreements”). |
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| 3. | Up      to the time of signing of the Sale Agreements the parties will establish      two companies: the one, which will purchase the “Residential Section”      (hereinafter – “the      Housing Company”) and the other which will purchase the “Commercial      Rights” (which will also be referred to below as “the Commercial Precinct”      or “the Commercial      Section” or “the      Mall”) (hereinafter – “the Mall      Company”).  Each of the parties will have one half (50%)      of the rights and obligations in each such company.  In      addition, the provisions of this Document of Principles will apply      respectively and as the case may be to the relationship between the      parties in each of the companies in a manner whereby everything stated in      relation to the joint company, in the absence of an express provision to      the contrary, means that it applies both in relation to the Housing      Company and also in relation to the Mall Company (each of the Housing      Company and the Mall Company will henceforth be referred to as – “the Company” or “the Joint      Company”).  The parties will act in such a manner that      the articles of each of the companies will be adapted to the provisions of      this Document of Principles.  In the case of a conflict between      the provisions of this Document of Principles and the articles of the      companies, the provisions of this Document of Principles shall      prevail. |
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| 4. | The      Joint Company: |
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|   | The      name of the Housing Company will be Lev Tel Aviv Towers Ltd. and the name      of the Mall Company will be City of Tel Aviv Mall  Ltd. |
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|   | 4.1 | The      object of the Joint Company will be: acquisition of the Property Sold (the      Mall Company with respect to the commercial rights and the Housing Company      with respect to the residential rights), the planning, development,      branding, construction, marketing and management thereof.  For      purposes of this clause marketing means – with respect to the residential      section, sale, and for purposes of the Commercial Precinct, leasing      only. |
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|   | 4.2 | 50%      of the shares and rights in the Housing Company and in the Mall Company      will be allotted to Blue Square and the same to  Gindi. |
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|   | 4.3 | Unless      otherwise stipulated in this document, decisions in the Joint Company      shall be passed by a majority vote of the  directors. |
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|   | 4.4 | The      board of directors of the Company shall formulate its      policy.  The board of directors shall be comprised of 4 members,      one half of whom will be appointed by Blue Square and the other half by      Gindi, and the same will apply to the replacement of such members and the      appointment of others in theirstead. |
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| 5. | Unanimous      resolutions |
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|   | The      parties hereby stipulate that there shall be no validity to any resolution      of the board of directors and/or any resolution of the general meeting      and/or of any of its committees on any of the matters described below,      unless such resolution is passed unanimously, provided that the holdings      of each of the parties at the time the resolution is passed shall not be      less than 25% of the issued and paid-up share capital of the relevant      company.  The following are the  subjects: |
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|   | 5.1 | A      resolution on the basic planning layouts – basic design concept of the      Project (which will serve as a basis for detailed planning) and a general      business and commercial plan including the indicative price lists, both      with respect to residential areas and also in relation to the      Mall.  In this connection it is clarified that under all      circumstances a closed mall will bedesigned. |
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|   | 5.2 | Approval      of a budget for the Housing Project or for the Commercial Project or for      the Public Buildings, whether annual or multi-annual, and whether the      amendment, increase or decrease of the budget, will be divided into two      subjects: one, direct building construction items (“the Construction      Items”) and the other the remaining subjects (“Other      Items”).  On each of the abovementioned subjects      unforeseen expenses will be fixed of 5% of the total costs on that      subject.  It is clarified that Gindi will be entitled to take      decisions on its own (without requiring the consent of Blue Square) in      each of the following cases: (a) in the case of a deviation of up to 2%      from the total construction costs item (including unforeseen expenses) and      5% of the total costs of the Other Items (including unforeseen expenses);      notwithstanding the foregoing, under no circumstances shall a budget item      exceed what was fixed with the consent of the parties by more than double;      (b) to reduce the revenues budget by a percentage of up to 5%, provided      that under no circumstances will residential units be sold at less than      90% of the price lists, except with unanimous consent.  It is      clarified that for purposes of this clause “costs” do not include the      costs of acquiring the land and Land Acquisition Tax.  It is      further agreed that the advertising and the marketing budget may be up to      6% of the total anticipated revenues of the  Project. |
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|   | 5.3 | Contractual      arrangements with a bank/s, credit institutions, under a finance and      construction loan agreement. |
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|   | 5.4 | Entering      into encumbrance agreements of alltypes. |
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|   | 5.5 | A      resolution regarding the raising of money from the shareholders and/or      from any third parties. |
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|   | 5.6 | Rights      of signature – the rights of signature in each company will be in      accordance with the rights of signature protocol which is attached hereto      as Appendix      B.  The rights of signature shall not be altered except      by way of a unanimous decision of the parties.  Gindi’s      representatives in the Company will have a right to sign any contractual      arrangement (excluding checks) of the Company, the extent or implications      of which do not exceed NIS 5 million and which is in accordance with the      budget referred to in Clause 5.2 above, and it will not require a      signature by Blue Square. |
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|   | 5.7 | Transactions      with interested parties or transactions with a third party in which either      of the parties has a personal interest, including transactions between the      Mall Company and the Housing Company and/or between the management      company, and except as stated in thisDocument. |
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|   | 5.8 | Appointment      / replacement / dismissal of: senior officers in the Company to the extent      that there is a necessity for their appointment and of a management and      supervision company for the Project and fixing of their      remuneration.  It is clarified that the contents of this clause      do not apply to the appointment or replacement of directors of the      Company, in relation to whom the contents of Clause 4.4 above will      apply. |
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|   | 5.9 | Any      financial contractual arrangement of the Company the extent or      implications of which exceeds NIS 5million. |
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|  | 5.10 | The      making of an offer and/or participation in the acquisition of rights in      “the Remainder of the      Project Lands”, as defined in the Sale Agreements.  A      party to this Document of Understanding shall not give and shall not      participate in, directly or indirectly, an offer and/or in initiating the      purchase of the remaining market rights in the Project Lands or any part      thereof, without the offer being brought for deliberation by the board of      directors of the Joint Company prior thereto and only if the Joint Company      should decide that it is not interested in purchasing those rights that      have been offered, will the party interested in doing so be entitled to      enter into a transaction in connection  therewith. |
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|  | 5.11 | Contractual      arrangements with companies for the management of the areas of the Mall,      the parking garages and the maintenance of the public    areas. |
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|  | 5.12 | Deciding      on the trade name for the commercial areas.  As opposed to that      the trade name of the residential project, including the name of the      Project on Plot No. 6 shall be decided byGindi. |
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|  | 5.13 | Any      alteration and/or amendment to the Sale Agreements and/or any other      document that has been signed and/or may be signed with the Sellers and/or      with the bank and/or with a third party where the original contractual      arrangement with such party requires the consent of both third      parties. |
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|  | 5.14 | Conversion      of the obligation for payment of “the additional consideration”, as      defined in the Sale Agreements (upside) and/or receiving an option for      such conversion. |
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|  | 5.15 | The      bringing in of an additional shareholder into the Company and/or any      transaction which in essence constitutes a merger or sale or allotment of      shares in the Company. |
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|  | 5.16 | A      decision with regard to the giving of discounts to buyers of apartments in      the residential section and/or an increase of selling prices of the      apartments of more than 10% of the prices specified in the “zero report”      that will be prepared for the Project and subject to the approval of the      bank, to the extent that it is required.  If at the time of      marketing the apartments there are no “zero report” that has been approved      by the bank, then the price lists that will be agreed by the parties prior      to the commencement of marketing will come in its  stead. |
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| 6. | The      parties agree that the Commercial Section of the Project will be operated      as a yield producing property and that there is no intention to sell      individual shops forming partthereof. |
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| 7. | Management      Services |
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|   | 7.1 | The      Company hereby appoints Gindi to provide the Company with “the management      services” as defined below.  The period for the providing      of management services will be: in relation to the residential section      until delivery of the last building in the residential section or up to 5      years from the date of signing of the Sale Agreements, whichever is the      later, and in relation to the Commercial Precinct – up to one year from      the date of initial operation of the Mall (hereinafter – “the Management      Period”).  Gindi will have the right to extend the period      of overriding management of the Mall for an additional two years, without      any consideration. |
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|   | 7.2 | In      the framework of the management services and subject to the provisions of      this Agreement, Gindi will be responsible for and will have the full power      and authority on all aspects of the current, daily, basic and detailed      management of the Project, including, without limitation, design of the      Project (selecting professional consultants, managing the planning,      detailed planning, design, licensing etc.), marketing and sales of the      Project (including the selecting of the entities who will market and sell      the Project, managing them, laying down and implementing the marketing,      sales and advertising policy, etc.), structuring and managing the Project      budget, carrying out and constructing the Project, including in connection      with managing the construction of the Public Buildings in accordance with      the provisions of the Construction Contract (including choosing executing      contractors, issuing tenders and managing same, managing implementation,      etc.). (Everything stated in this clause will be referred to above and      below as “the Management      Services”). |
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|   | It      is hereby agreed that prior to any contractual arrangement in connection      with the construction of the Project, including, without limitation,      entrusting of contracting works, procuring of services of any sort and/or      procuring of goods, at least 2 quotations shall be obtained (to the extent      that it is possible to obtain two quotations).  The foregoing      will not apply to contractual arrangements the overall scope and extent of      which is less than a sum of NIS200,000. |
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|   | 7.3 | It      is hereby agreed that for purposes of constructing the Project, the Joint      Company and/or someone on its behalf will contract with the following      consultants: |
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|   | 7.3.1  | Architect      for the Housing Project:    Yashar      Architects. |
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|   | Commercial: | Yasky      or Zur |
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|   | 7.3.2 | Management      and supervision: Margolin Brothers or Waxman  Govrin. |
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|   | 7.3.3  | Traffic      Consultants:                                                     Dagesh |
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|   | 7.4 | Gindi      undertakes to provide the Management Services during the management period      through at least one of the following persons Manor Gindi and/or Uri Levi,      all for the period, on the conditions and for the consideration as      specified in this Document of Principles (hereinafter – “the Managers” / “the      Manager”).  Without derogating from Gindi’s commitment as      aforesaid, in any event that at least one of the Managers does not provide      the Management Services to the Company and/or in any event in which      control in Gindi is transferred to any third party, the Company will be      entitled to terminate the contractual agreement with Gindi in connection      with the providing of Management Services to the Company, and in such case      the management fees will be adjusted to the period in which the Management      Services were actually provided.  The formula for adjustment      will be decided upon in the scope of the detailed      agreement.  The Managers are not and will not be deemed to be      employees of the Company and their remuneration, as well as their social      conditions, will be given to them by Gindi and on its      responsibility.  The Company will not bear any expense and/or      social benefits in respect of the Managers.  Provisions which      guarantee this will be stipulated in the framework of the detailed      agreement. |
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|   | The      appointment of the Managers as aforesaid is a personal appointment and      cannot be assigned and/or endorsed either fully or    partially. |
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| 8. | Finance |
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|   | 8.1 | The      parties will finance the Project, including the purchase, out of their own      independent resources and by way of external banking / financial      construction loans.  The parties will take steps to maximize the      external financing element in the transaction to the greatest extent      possible.  In the absence of written agreement to the contrary,      each party will be responsible for and obliged to provide only its pro      rata share. |
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|   | 8.2 | Notwithstanding      the fact that the holdings of the parties in the Joint Company are equal      shares, Blue Square will provide the Joint Company for purposes of making      “First Payment”, “the Additional First Payment” and “the Later First      Payment”, as these terms are defined in the Sale Agreements (which will be      referred to below in this Document of Principles as – “the First Payment”) with      60% of any such payment and Gindi will provide 40% of the amount of each      such payment. |
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|   | 8.3 | The      parties will act together and in unison to obtain a line of frame, on a      guarantee by the owners in equal shares between them, for purposes of      financing the investments and expenses of the Joint Company, prior to the      giving of the banking construction loans, including payments to      consultants, real estate agents and other service providers that may be      required during the period from the date of making of the First Payment      and up to the time the banking construction loans are provided      (hereinafter: “the      Additional Expenses”).  The parties’ working assumption      is that they will not be required to pay Land Acquisition Tax before the      Second Payment and that this does not form part of the Additional      Expenses.  However, if the Company is obliged to make payments      of Land Acquisition Tax prior to the date of the Second Payment,      notwithstanding what is stated above, then this amount will also be taken      into account in the scope of the Additional Expenses and the situation      regarding the excess amount that will be provided by Blue Square as      aforesaid, will be deemed to be the same as the early payment and in a      manner that this will bear costs, interest and indexation differences from      the date on which it is provided. |
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|   | 8.4 | If      the Joint Company does not succeed in obtaining a line of credit as      aforesaid, for cover of the Additional Expenses or any part thereof, then      Blue Square will provide 60% of the Additional Expenses or of that part in      respect of which a line of credit as aforesaid was not obtained, and Gindi      40% of the amounts that have been paid / will be paid in excess of the      amount that was paid by Gindi, i.e.: 20% of the amount of the First      Payment and of the Additional Expenses as defined below by Blue Square      instead of Gindi as stated in Clauses 8.2 and 8.3 above, (hereinafter      referred to – “the      Anticipated Payment”). |
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|   | 8.5 | It      is agreed that the Anticipated Payment will be deemed to be a loan by Blue      Square in a manner that Gindi and Dirot Yukra will be guarantors for      reimbursement of one half of the amount that was anticipated (together      with linkage and interest, as specified in this Document of Principles),      if this is not repaid within 8 years from the date of this      document. |
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|   | 8.6 | The      Anticipated Payment shall, during the period from the date of the purchase      agreement and up to the time of making of the Second Payment, will bear      indexation differences and interest at the minimum rate required in      accordance with the Income Tax Regulations (linkage and the interest on      the Anticipated Payment will be referred to below as – “the Amount of the Costs in the      First Period”) and in respect of the period subsequent to making of      the Second Payment, will be linked to the Consumer Price Index and will      bear interest and costs as follows: if the source of financing of the      Anticipated Payment is from a loan which Blue Square has taken for such      purpose – then Blue Square will be entitled to receive its costs,      including interest at an identical rate to that it will be required to pay      the bank (back to back) and in a case in which Blue Square provides the      Additional Payment not by way of such loan, then the interest will be      fixed according to the cost of raising of a similar amount (debentures)      and on similar conditions (such as duration) which prevails for the time      being in a company having a similar rating to Blue  Square. |
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|   | 8.7 | Any      payment that may be required commencing from and including “the Second      Payment”, as defined in the Sale Agreements, including, but without      limitation, the expenses necessary for purposes of erecting and completing      the Project, including all the parts thereof, if same was not provided      within the scope of the construction loans, will be provided by the      parties themselves, in equalshares. |
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|   | 8.8 | Any      withdrawal of equity capital will be repaid according to the proportions      of the parties’ investments, including the interest and the indexation      differences that have accrued in respect of the equity capital, including      in respect of the Anticipated Amount as aforesaid, at the time of such      repayment of equity capital (if for example up to the date of withdrawal      of the equity capital, Blue Square invests 55% and Gindi 45%, then and at      that time Blue Square will receive 55% of such repayment of equity capital      and Gindi 45%). |
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|   | 8.9 | Each      party declares that it has the ability to meet its obligations in      accordance with this Document of Principles and the Sale      Agreements. |
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|   | 9.1 | In      consideration for Gindi’s Management Services, Gindi will be entitled to      receive Management Fees from the Housing Company at a rate equal to 16% of      “Profits of the Housing      Project”, as defined below and Management Fees from the Mall      Company at a rate equivalent to 16% of “the calculated profit of the      Company from the Commercial Precinct”, as defined      below. |
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|   | 9.2 | For      purposes of calculation and payment of the Management Fees to Gindi, the      terms and expressions set forth below will have the meanings set opposite      them: |
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|   | Cost of construction:      All expenses of whatsoever nature connected with constructing the Project      (the residential or the commercial areas, as the case may be), until the      full completion thereof, without exception, where such expenses do not      include V.A.T., including, without limitation, the costs of purchase of      the Property Sold (including “the Extra Consideration”, as defined in the      Sale Agreements), Land Acquisition Tax, building fees and levies,      investments in the leased premises, betterment levies and similar other      public impositions, management expenses (excluding the Management Fees to      Gindi) planning and coordinating supervision, financial expenses, building      construction, materials, marketing, real estate agency commission,      attorneys, registration and payment to the Municipality in respect of      registration and any other expense that is connected or demanded for      purposes of the Project, all as will be recorded in the books of the Joint      Company and subject to the provisions of this  document. |
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|   | Costs of construction of the      residential areas means the cost of construction within the meaning      thereof above and in relation to the Housing Project only.  This      will include the costs of constructing the open public areas, and in the      absence of a directive to the contrary from the Company’s auditors stating      that these expenses must be attributed  to the cost of      construction of the commercial section, also the cost of construction of      the Public Buildings. |
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|   | Costs of construction of the      Commercial Section: means the cost of construction within the      meaning thereof above in relation to the commercial project      only. |
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|   | Profits of the Housing      Project: the amount of proceeds (excluding V.A.T.) received from      the sale of residential units and the areas ancillary thereto (storerooms,      parking places and so forth), including any other amount that may be      received in the Housing Project (including legal expenses and/or      registration expenses), and in the absence of a directive to the contrary      from the Company’s auditors to the effect that these receipts must be      attributed to the calculated profit from the Commercial Precinct, also all      the revenues in respect of works for erecting the Public Buildings, less      the cost of construction of the residential  areas. |
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|   | The Company’s calculated profit      from the Commercial Precinct: The NOI that will be calculated at      the beginning of the fourth year from the opening of the Mall in respect      of the operation of the Mall in the third year after the opening of the      Mall multiplied by 10, less the costs of construction of the Commercial      Section. |
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|   | 9.3 | The      Management Fees that are due to Gindi from the Mall Company in accordance      with the provisions of Clauses 9.1 and 9.2 above are derived from the      Company’s calculated profit from the Commercial Precinct (hereinafter –      “the Mall Management      Fees”) shall be paid together with V.A.T. as prescribed by law      against a tax invoice, in the eight equal and successive annual payments      on a basis that Gindi will be entitled to the first payment at the time of      opening of the Mall and in the manner described below.  Subject      to the approval of the lending bank, Gindi will be entitled to receive an      advance payment on account of the Mall Management Fees, at the time of      opening of the Mall and likewise at the end of one year and at the end of      two years from the time of opening of the Mall, where the NOI for purposes      of calculating such advance, shall be done according to the revenues      expected by the Mall Company, in the first year of lease from the date of      opening of the Mall and as arising from the lease agreements and an      assessment of the anticipated expenses in respect of the first year of      lease.  Amounts of the advance payment (both the aforesaid      advance payment as well as the advance payment mentioned in Clause 9.9      below) which will pay to Gindi up to such time shall be deducted from the      Mall Management Fees, where such advance payments are linked to the index      from the date of payment thereof to Gindi and up to the date of the      set-off as aforesaid (hereinafter – “the Balance of the Management      Fees”). The Balance of the      Management Fees will be paid together with linkage differences to the      Consumer Price Index where the basic index is the index that was known at      the time of fixing the amount of the Mall Management Expenses, and this      shall be done in five equal annual payments from the date of calculation      of the Management Fees.  In the event of a sale of the      Commercial Section or in the case of refinancing of the Commercial      Project, then upon receipt of the consideration in respect of the sale or      receipt of refinance and release of the equity capital (including the      Anticipated Payment) to the shareholders in the Mall Company, the Balance      of the Mall Management Fees which have not yet been paid shall be paid to      Gindi at such time by the MallCompany. |
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|   | 9.4 | Calculation      and total of the amounts mentioned in this Clause 9 above, both with      respect to its expenses and also in regard to proceeds, as well as with      respect to construction costs and in regard to a definition of the      relevant profit, shall be done in values linked to the Consumer Price      Index, from the known index at the time of the charge, expense, payment,      receipt of proceeds, as the case may be, and as against the known index at      the time of the accounting. |
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|   | 9.5 | For      purposes of calculating the amount of the construction costs or any      calculation deriving from the costs of construction, of both of the      Commercial Project and also of the Housing  Project: |
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|   | a. | No      depreciation of any sort and at any percentage will be taken into account,      whether or not actuallyrecorded. |
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|   | b. | Expenses      that are considered and recorded from the aspect of the tax laws and as      revenue expenses, and not as capital expenses, will also be taken into      account. |
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|   | 9.6 | The      Company will record in its books direct expenses as the case may be, i.e.      – those which belong to the residential areas will be recorded to the      Housing Project and those which belong to the Commercial Project will be      recorded to the Commercial Project.  With respect to mixed      expenses the parties will act in accordance with the directives of      whomever the parties may appoint for this  purpose. |
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|   | 9.7 | Payment      of the Management Fees deriving from the profit on the residential areas,      will be paid to Gindi immediately after and subject to fulfillment of the      following cumulative conditions: |
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|   | 9.7.1 | The      Anticipated Payment as referred to in Clause 8.4 above will be repaid in      full to Blue Square together with all the interest that has accrued up to      such time. |
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|   | 9.7.2 | Repayment      of the full equity capital that was furnished by the parties together with      financial costs and simultaneous with the distribution of the balance of      the profits due to theshareholders. |
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|   | 9.7.3 | Approval      of the lending banks is given to the payment of such Management      Fees. |
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|   | 9.8 | Calculation      of the calculated profit from the Commercial Precinct and the profits of      the Housing Project and Gindi’s Management Fees in respect thereof, shall      be made only in accordance with the contents of Clause 9 and all the      sub-clauses hereof, notwithstanding any other existing or future      accounting instruction and/orstandard. |
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|   | 9.9 | Gindi      will be entitled to receive from the Company, once each year commencing      from the date of signing of the Sale Agreements, an advance payment on      account of the Management Fees in an amount of NIS 3 million per annum      plus V.A.T. as prescribed by law, where such amount is linked to the index      commencing from the known index at the time of signing of the Sale      Agreements, during a period of 5 years only, and with regard to the      Commercial Section during a period of 5 years or until the opening of the      Mall whichever is the earlier, at which time payment of the advance      payments shall cease.  That is to say, altogether – not more      than NIS 15 million plus V.A.T. as prescribed by law.  Out of      the aforesaid amount, NIS 7.5 million plus V.A.T. as prescribed by law,      where same is linked to the index as aforesaid, will be deemed to be an      advance payment on account of the Management Fees from the Housing      Company, and NIS 7.5 million plus V.A.T. as prescribed by law where same      is linked to the index as aforesaid, will be deemed to be an advance      payment on account of the Mall Management Fees.  The parties      will take steps to obtain approval for this payment by the lending bank in      the scope of the construction loan agreement.  Only upon the      lending bank’s approval will cumulative amounts of the advance payments to      which Gindi is entitled in respect of the period commencing from the date      of signing of the Sale Agreements and up to the date of actual payment be      paid and from that date onwards the amounts of the advance payments will      be paid until the full payment of the amount of the advance payment, all      in accordance with the bank’s approval.  It is hereby expressly      clarified that if eventually the Housing Project and/or the Commercial      Project does not have profits, then Gindi will not be entitled to any      Management Fees in respect of such Project (the Housing or the Commercial      Project as aforesaid), but the amount of the advance payment in respect of      such Project will not berefunded. |
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|  | 9.10 | It      is further clarified that commencing from the date of Gindi’s entitlement      to payment of the advance payment stipulated in Clause 9.3 above, only one      advance payment will be paid to Gindi in respect of the commercial areas,      being either the advance payments specified in Clause 9.3 above or that      which is specified in this clause, whichever is the  higher. |
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|  | 9.11 | Gindi      will be entitled to a bonus in an amount which is equivalent to “the total      costs in the first period”, as defined in Clause 8.6 above, less an amount      equivalent to the indexation differences in respect of the Anticipated      Payment, all in relation to the period from the date of the purchase      agreement and up to the making of a Second Payment.  The amounts      that will be due to Gindi as aforesaid will be paid at the time      at  which the amount of costs in the first period, as defined      above, are paid to Blue Square. |
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|  | 9.12 | In      the event of a dispute regarding calculation of the Management Fees, the      matter will be decided by Ronen Barel C.P.A. or another senior partner of      the Kost office who will be appointed by him, all in accordance with the      provisions of this Document of Principles (hereinafter – “the Arbiter      Accountant”).  His status will be that of an expert      arbiter and not the status of an arbitrator and his decision shall be      final and it shall be made on the basis of the provisions of this document      only.  The Management Fees shall be paid out of the company’s      resources – in other words, during the construction stage in the scope of      the construction loans and later on out of  profits. |
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|  | 9.13 | A      tax invoice according to law shall be delivered against payment of the      Management Fees. |
|--|------|-----------------------------------------------------------------------------------------------------|

|  | 9.14 | If      the execution of the Management Services necessitates the engaging of      office bearers, then such persons will be appointed by Gindi and will be      employed by the Company and at its expense.  If what are      involved are senior office bearers, their appointment and the terms of      their employment will be according to consensus agreement of both the      parties.  However, use of a base (platform) comprising, inter      alia, employees and the equipment of Gindi and/or of Blue Square, as the      case may be, will not impose on the Company and will not entitle the      provider to any participation in the costs of such relevant base or      platform. |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 9.15 | For      the removal of doubt it is hereby clarified that the Housing Company and      the Mall Company will, with the consent of both the parties, appoint      management and maintenance companies whose function will be to attend to      the current and ongoing care of the commercial areas and the residential      areas, as the case may be, and that the Management Services do not include      these services, but they do include overriding management of the suppliers      of such services, and this will apply until the end of the relevant      management period of Gindi’s Management  Services. |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10. | Management      of monies and bookkeeping andaccounting |
|-----|---------------------------------------------------------|

|  | 10.1 | The      Company’s ongoing accounting, including, without limitation, maintaining      of bank accounts, suppliers’ accounts, issue of checks, issue of invoices,      issue of accounts, issue of receipts, V.A.T. reports, social payments and      various reports, work with the banking system (apart from current and      ongoing work vis-à-vis the bank for purposes of implementing the      construction loan agreement, which will be under Gindi’s      responsibility,  nothing in the foregoing shall derogate from      the provisions of Clause 5 and the sub-clauses thereof), current monthly      reports to real estate appraisers and quarterly reports will be under the      responsibility and the authority of Blue Square.  For purposes      of performing this task the Company shall employ employees      (comptroller,  bookkeeper and so forth) as necessary, who will      be appointed by Blue Square and will be under its supervision and      responsibility.  The remuneration of such employees shall be      paid by the Company. |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.2 | The      Company’s accountants will be Kesselman and Kesselman or any other firm      that may be recommended by BlueSquare. |
|--|------|------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.3 | The      Company’s financial statements shall be drawn in accordance with the      Securities Regulations and in the format necessitated by the fact of the      Company being a subsidiary of public companies and according to the      accepted standards practiced by theparties. |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.4 | It      is clarified that the Company will be obliged to deliver its statements to      the parties for purposes of being attached to the financial statements of      the parties and for the publication thereof as required by the law      enforcement authorities. |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.5 | The      board of directors of the Company shall convene to consider and approve      the Company’s financial statements in the following manner: the annual      statements – 45 days before the last date required for approving of      financial statements by public companies whose shares are traded on the      Tel Aviv Stock Exchange Ltd., and quarterly reports – 30 days before the      last date is required for approving of quarterly reports by public      companies whose shares are traded on the Tel Aviv Stock Exchange      Ltd. |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | Advertising |
|-----|-------------|

|  | 11.1 | Gindi      shall report regularly to Blue Square about advertisements it intends to      publish by various forms of media in connection with the      Project.  If any obligation should arise according to law for      Blue Square to report on such advertising, the advertising will be      coordinated in advance between theparties. |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 11.2 | In      every advertisement of the Project and in any media, including, without      limitation, adverts in the press, billboards, advertising in newspapers,      television, Internet and so forth, to the extent that this is dependent on      Gindi or on Blue Square, the names of the parties as the promoters of the      Project shall be exhibited equally. |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12. | Dilution |
|-----|----------|

|  | 12.1 | Subject      to the contents of this Document of Principles, including and in      particular Clause 8.2 above, each party shall provide its share of      investments in the equity capital, in guarantees and in collateral for      purposes of planning, development, construction and marketing of the      Project.  The providing of the share of each party shall be done      in accordance with decisions that will be taken from time to time and/or      as necessitated by the budget and/or as called for under the Sale      Agreements and the obligations of the Company to a third      party. |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | 12.2 | If      either of the parties (hereinafter – “the Defaulting Party”)      does not furnish the Joint Company with the finance required up to the      date required for the purpose (hereinafter – “the Date of Payment”),      then the other party which has furnished the financing required to the      extent of its share (hereinafter – “the Complying Party”)      will have the possibility, in its sole discretion, also to provide the      share in the necessary financing of the Defaulting Party (hereinafter –      “the Additional      Financing”) on its own, subject to giving the Defaulting Party      prior written notice of at least 15 days from the Date of the      Payment.  If during the aforesaid period the Defaulting Party      also fails to provide its share of the necessary financing, on its own,      the Complying Party will be entitled to give the Defaulting Party written      notice that it has decided to provide the Additional Financing for the      Defaulting Party as a loan.  This amount, to the extent that it      is actually provided as aforesaid and together with interest linked to the      Consumer Price Index at an annual rate (or pro rata portion) of 12% plus      V.A.T. in respect of the interest and the indexation differences, if any      (hereinafter – “the      Additional Financing Loan”) shall be repaid as a first repayment on      account of the shareholders’ loans, before any payment and/or distribution      of profits and before the Management Fees to Gindi, and subject to the      obligations to the lending bank.  The calculation and charging      of the interest shall be on a quarterlybasis. |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.3 | The      Defaulting Party will have the right to rectify the breach during 60 days      from the date on which the Additional Financing Loan was provided by the      Complying Party.  After the elapse of 60 days from the date on      which the Additional Financing Loan was provided, without having been      repaid in full by the Defaulting Party, the Complying Party will be      entitled, without derogating from any other remedy according to law, to      dilute the share of the Defaulting Party in the relevant company, in      accordance with the provisions set forthbelow: |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      percentage holdings of  the Complying Party after the dilution      in the Housing Company or in the Mall Company, as the case may be, will be      determined as follows: a multiplication by 150% of the amount of the      investment made by the Complying Party in lieu of the Defaulting Party,      where this amount is divided by the total investments of the parties in      that company.  For example: at the time of the initial      investment each party invested NIS 500 in the relevant      company.  The parties were called upon to provide an additional      NIS 100 to the Mall Company (each party NIS 50).  The Complying      Party paid its share and the Defaulting Party did not.  The      Complying Party wishes to provide the Defaulting Party’s share, against      dilution of the Defaulting Party’s share.  Calculation of the      percentage dilution is: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 50/1100      x 150%  = 6.8% |
|--------|---------------------------------------|

|   | Shares      to an extent of 6.8% will be allotted to the Complying Shareholder against      the furnishing of the aforesaid amount instead of the Defaulting      Shareholder. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.4 | Calculation      of the dilution according to the above principles will be done      by  the  Arbiter Accountant in accordance with the      above principle.  His determination will be made in writing,      shall be delivered to the parties and shall be deemed to be a decision of      an expert arbiter and his decision will be final and absolute      (hereinbefore and hereinafter – “the Percentage      Dilution”).  Determining of the Percentage Dilution shall      be binding on the attorneys as stated in Clause 14.7 [12.6]      below. |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | 12.5 | The      validity of the dilution shall be commencing from the date on which the      Complying Party notified the Defaulting Party about the dilution in      accordance with this Document of Principles and after determination of the      percentage dilution has been delivered to the parties.  Once      such dilution has been made, the Defaulting Party will no longer be      treated as a debtor in respect of the amount of the Additional Financing      Loan, but this amount shall be recorded in the Company’s books as a      shareholder’s loan to the Company from the Complying  Party. |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.6 | It      is hereby agreed that at the time of signing of this Document of      Principles, or at the latest within 7 days from the date of signing of      this Document of Principles, the parties will lodge with the attorneys of      the law office of M. Firon & Co. and the attorneys of the law office      of Goldfarb, Levy, Eran, Meiri, Tsafrir & Co. (hereinafter – “the Attorneys”) the      following documents as security for implementation of such dilution:      minutes authenticated by an attorney and an irrevocable power of attorney      in the text attached to this Document of Principles as Appendix      C, duly and properly signed, empowering the Attorneys to perform      any act in the name and on behalf of the parties and/or to sign any      document that may be required for purposes of performing dilution      operations as described in this clause.  The signature of the      parties to this Document of Principles shall be tantamount to an      authorization to the Attorneys to complete whatever is required in the      Documents (for example, the Percentage Dilution, in accordance with the      determination of the ArbiterAccountant). |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.7 | Without      derogating from the foregoing if either parties should object by act      and/or omission, directly and/or indirectly, itself and/or through someone      on its behalf, to a dilution of its share, notwithstanding that such      dilution was made in accordance with the provisions of this Document of      Principles, it will be deemed to have committed a material breach of this      Document of Principles and in that case that portion of its shares in the      Joint Company and in “the Management Company”, as defined below, which are      equivalent to the Percentage Dilution, will – upon a demand by the other      parties – be deemed to be someone whose rights in respect thereof have      been absolutely and fully deferred, and same will be without any rights      including, but without limitation, the right to receive notice of a      general meeting of any class and the right to receive a pro rata share in      a winding-up of the Joint Company. |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.8 | On      the demand of the party demanding dilution, the Attorneys shall be obliged      to act to implement the dilution in accordance with the provisions of this      clause above.  The signature by the parties to this Document of      Principles is tantamount to the giving of an irrevocable instruction to      the Attorneys to act as aforesaid.  The Attorneys shall confirm      to the parties in writing immediately after the signing of this Document      of Principles that they will actaccordingly. |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.9 | Until      such time as it is otherwise agreed between the parties, monies that will      be provided by either of the parties to the Company shall be recorded as      shareholders loans.  The loans will bear interest from the date      on which they were given to the Company and up to the date of actual      repayment thereof at a rate which is 1% higher per annum than the rate of      interest prevailing for the time being in respect of a deposit of an      identical amount and for an identical period at the lending      bank. |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 13. | Restrictions      on transfer rights |
|-----|--------------------------------------|

|   | Right of first      refusal |
|--------|-----------------------------|

|  | 13.1 | A      party wishing to transfer and/or sell any of its rights and obligations in      the Joint Company, including an assignment and/or grant of any other right      to a third party, including, without limitation, by way of an allotment      and/or by way of realizing an encumbrance [except to the lending bank]      whether for consideration or otherwise (hereinafter – “the Offered Object for      Sale”) (hereinafter – “the Seller” and/or      “the Offeror”),      will be obliged first to offer the entire Object offered for sale to the      other party at the price and on the conditions (including with regard to      collateral security, terms of payment and so forth) which are being      offered to him in binding fashion in writing by third party (hereinafter:      “the Offeree,      “the Offer”, as      the case may be), in the followingmanner. |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.2 | The      Offer shall be made by giving written notice of sale, containing details      regarding Object Offered for Sale, the price thereof, the terms of      payment, the identity of the third party, including – if the third party      is a legal entity – the identity of any controlling shareholder therein up      to the private ultimate controlling shareholders therein, all as are known      to it, or if the third party wishes to purchase the Object Offered for      Sale as a trustee for another person or body in any manner, the identity      of the beneficiary and the private ultimate controlling shareholder      therein, all to the extent known to it, and the remaining terms and      conditions of the sale (hereinafter – “the Notice of      Sale”).  A binding offer by the third party shall be      attached to the Notice of Sale.  The Offeree shall keep      confidential the matters stated in the Notice of Sale, except to the      extent required to realize its rights in accordance with this Document of      Principles.  In addition a comfort letter from one of the five      largest banks in Israel shall be attached to the Notice of Sale stating      that the third party has the ability to raise the monies and the      collateral security for financing the purchase of the Joint Company or the      relevant share. |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.3 | The      Offeree will be entitled to notify the Offeror in writing, within thirty      (30) days from the date of the Notice of Sale (hereinafter – “the Notice of the Acceptance      Period”) that it accepts the Offer and wishes to purchase the      rights which are offered at the price stated in the Notice of Sale, on the      conditions of the Notice of Sale and subject to obtaining any approval      required at law for purposes of the sale transaction coming into force, if      and to the extent that same is required (hereinafter – “Notice of the      Acceptance”). |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.4 | Where      Notice of Acceptance has been given by the Offeree, the Offeree shall      purchase the Object Offered for Sale from the Offeror within fourteen (14)      business days from the date of the Notice of the Acceptance (hereinafter –      “the Period for      Realization of the Notice of Acceptance”), subject to obtaining any      approval required at law for purposes of the sale transaction coming into      force, if required, in consideration for payment of the price specified in      the Notice of Sale, and on the conditions set forth in the Notice of      Sale. |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.5 | If      no Notice of Acceptance is given within the Notice of the Acceptance      Period, or if a notice is given to the effect that the Offeree does not      accept the Notice of Sale, or accepts on conditions that differ from the      Notice of the Acceptance, or if the Offeree fails to sign the sale      agreement and to make payment in accordance therewith within the Period of      Realization of the Notice of Acceptance, the Offeror will be entitled to      sell the Object Offered for Sale to a third party at a price and on      conditions that are not less favorable than those specified in the third      party’s offer as was attached to the Notice of Sale, provided that the      sale agreement between the Offeror and the third party shall be signed      within sixty (60) days from the date of termination of the Notice of the      Acceptance Period or from the end of the Period for Realization of the      Notice of the Acceptance, if there is such – and subject to the condition      that the third party shall, prior to the effecting of the transfer and as      a pre-condition for the execution thereof and for its validity, sign an      undertaking pursuant to which it unconditionally assumes, with the      approval of the lending bank, all the Offeror’s obligations and rights      pursuant to this Document of Principles, and will agree to become a party      to this Document of Principles for all intents and purposes, as if it had      from the outset signed this Document in place of and/or together with the      Offeror, as the case may be.  If the Offeree so demands from the      Offeror, the Offeror shall disclose to the Offeree and to an accountant      who will be appointed for this purpose by the Offeree, the full set of      agreements between it and the third party in connection with the sale of      the Object Offered for Sale. |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | 13.6 | Without      derogating from the foregoing, a sale and/or transfer and/or allotment      and/or realization of shares in the Joint Company in accordance with this      Clause 13 above will be of no validity, unless approved in accordance with      the provisions of the Sale Agreements and the party who acquires the      rights as aforesaid shall, with the approval of the lending bank, step      into the shoes of the selling party (back to back) in all respects,      including vis-à-vis the Sellers, third parties and in accordance with this      Document of Principles and the co-ownership agreements, and shall produce      an approval thereto from the lending bank and shall cause the release of      all (or a pro rata portion, as the case may be) of the collateral security      the selling party has furnished to the lending bank and/or to the Sellers,      all of which shall be at the time of payment of the consideration and      against transfer of substitute collateral security to whatever extent may      be required. |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.7 | If      an agreement is not signed for the sale of the Object Offered for Sale to      a third party within 60 days from the end of the Notice of the Acceptance      Period or from the end of the Period for Realization of the Notice of      Acceptance, if there was such, the Offeror will not be entitled to sell      the Object Offered for Sale to the third party until after having given a      fresh right of first refusal as described above, including the giving of a      new notice of sale. |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.8 | It      is clarified that there shall be no validity to any sale, unless the      lending bank has delivered written approval to the effect that this is      being done with its acquiescence and with its knowledge and that the buyer      has furnished all the necessary collateral security and undertakings in      place of the Seller. |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14. | Tag-Along      right |
|-----|----------------------|

| 14.1 | In      the event that either of the parties should wish to sell and/or to      transfer and/or to allot, directly or indirectly, any of its shares in the      Company to third parties and the right of first refusal described in      Clause 13 above has not been exercised in connection with such sale, the      aforesaid sale – transfer – allotment shall be subject to the right of the      other party to join in the sale to a third party in accordance with the      provisions set forth below. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2 | The      party wishing to transfer (hereinafter – “the Offeree Seller”) its      shares in the Company (hereinafter – “the Shares being Sold”)      to any third party (hereinafter – “the Offeror Buyer”)      shall be obliged, prior to such sale, to send in writing the offer of the      Offeror Buyer to purchase the Shares being Sold to the other party in      writing (hereinafter – “the Other Party”), which      shall include the identity of the third party, including, in the event      that the third party is a legal entity, the identity of all the      controlling shareholders therein up to and including the ultimate private      controlling shareholders therein, as are known to it, or if the third      party wishes to buy the shares as a trustee for another person or body in      any way, the identity of the beneficiary and the ultimate private      controlling shareholders therein, as far as are known to it, as well as      the consideration offered to it by a third party for the purchase of the      Shares being Sold and the terms of payment thereof, and the remaining      terms and conditions of the proposed transaction for the sale of all the      Shares being Sold. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 14.3 | The      Other Party will be entitled, within 30 (thirty) days from the date on      which details of the Offeror Buyer’s offer are received by it, to give      notice in writing to the Offeree Seller of its desire to participate in a      sale to the Offeror Buyer of the Shares being Sold under the conditions      set forth in the details of the Offeror Buyer’s offer which has been      received by him as aforesaid (hereinafter – “Tag-Along Notice” and      “Tag-Along Notice      Period”, respectively).  Where such Tag-Along Notices      have been given and an agreement has been signed for the sale of the      Shares being Sold between the Offeror Seller, the Other Party who served a      Tag-Along Notice in time and the Offeror Buyer, within fourteen (14)      business days from the end of the Tag-Along Notice Period (hereinafter –      “the Period for Exercise      of the Tag-Along Notice”), the sale of the Shares being Sold will      be divided between the Offeree Seller and the Other Party according to the      proportion of the holdings of each of the foregoing in the share capital      of the Joint Company, but under no circumstances not more than one share      against each share sold. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.4 | If      no Tag-Along Notices as aforesaid are given within the Tag-Along Notice      Period, or if a Tag-Along Notice is given stating that the party giving      the notice confirms its participation on conditions that differ from those      set forth in the offer of the Offeror Buyer, or the party who delivers the      Tag-Along Notice fails to sign the agreement for sale of the Shares being      Sold within the period of exercise of the Tag-Along Notice, the Offeree      Seller will be entitled to sell all the Shares being Sold to the Offeror      Buyer in accordance with the details of the offer as was sent to the Other      Party, provided that an agreement for the sale of the Shares being Sold to      the third party shall be signed between them within 60 days from the end      of the Tag-Along Notice Period or from the end of the period for exercise      of the Tag-Along Notice, if there wassuch. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.5 | Subject      to the foregoing, the shareholders shall cooperate and shall sign any      document that is required in order to implement a sale of the Shares being      Sold and the shares of the Other Party which are offered for sale to a      third party in good time. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.6 | In      addition to the foregoing, it is hereby expressly agreed that a sale of      the shares been sold and/or the shares of the Other Party that are offered      for sale, to any third party, is conditional upon the third party assuming      all the rights and obligations of the Offeree Seller (and of the Other      Party who delivered a Tag-Along Notice as aforesaid, if there was such) in      accordance with this Document of Principles and the Sale Agreements, and      it shall agree to become a party to those Agreements in all respects, as      if it had signed same from the outset instead of and/or together with the      Offeree Seller and/or the parties to whom a Tag-Along offer was made, as      the case may be. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.7 | It      is clarified that no sale and/or transfer and/or allotment will be of any      validity, unless the lending bank has given written approval pursuant to      which this is being done with its knowledge and consent and that the Buyer      has furnished all the necessary collateral and undertakings instead of the      Seller. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15. | Prohibition      on transfer of rights |
|-----|----------------------------------------|

| 15.1 | Notwithstanding      any other provision in this Agreement, it is agreed that none of the      parties will be entitled to transfer or sell or to confer means of      control, directly or indirectly, which are cumulatively greater than 20%      of that party’s portion of the issued share capital, including by way of      an allotment of any of the companies until completion of the Project (in      other words the obtaining of Form 4 for the residential buildings and the      commercial areas). |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 16. | General |
|-----|---------|

| 16.1 | Without      derogating from the contents of Clause 15.1 above, it is hereby clarified      that in every case of the party who transfers its rights, in whole or in      part, to another/others in accordance with the mechanisms that are the      subject of this Document of Principles, the transferor party undertakes,      as a pre-condition to the validity of the transfer of rights, as      follows: |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.2 | To      cause a situation that the buyer/s or the transferee/s take upon      himself/themselves as against the remaining party the obligations pursuant      to this Document of Principles, in accordance with the Sale Agreements,      and in accordance with any contractual arrangements of the parties with      third parties, including the lending bank, prior to the date of transfer      of the Object Offered for Sale to such buyer/s or transferee/s and shall      sign this Document of Principles with the remaining party, and the lending      bank shall approve such transfer (such approval is a pre-condition to the      validity of the transfer) as also releasing the selling party from its      obligations to the lending bank, in whole or in part, as the case may      be. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.3 | To      pay all its debts to the Joint Company and to the remaining party up to      the date of transfer of the rights, if there are  such. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------|

| 16.4 | To      remove any encumbrance that is registered over its portion of the Joint      Company and to release the other party from such encumbrance and to give      the other party a written declaration stating that it has reported the      fact of the sale and/or transfer to any entity required according to any      law. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.5 | The      provisions of Clauses 13 and 14 above shall apply, mutatis mutandis, also      in a case in which any of the parties wishes to sell and/or transfer      and/or allot and/or to realize an encumbrance (“Transfer of Rights”) any      of its shares in the Company which are held directly or indirectly, in the      Mall Company and/or in the Housing Company, except in companies the      securities of which are traded on the Stock Exchange, but same will not      apply to a Transfer of Rights of any of the parties to a corporation under      the direct and/or indirect control of the transferor party or of the      controlling shareholders in the transferor and/or the controlling      shareholders in the controlling shareholder (hereinafter – “Controlled      Corporation”), or to a corporation under the control of the      controlling shareholders in the transferor (hereinafter – “a Sister Corporation”),      or to a corporation which directly or indirectly controls the transferor      (hereinafter – “Controlling      Corporation”), provided that the Controlled Corporation or the      Sister Corporation or the Controlling Corporation, as the case may be, is      under the full control (100%) of the controlling shareholder therein and      that the Controlling Corporation shall confirm in writing that it is      stepping into the shoes of the transferor in all respects connected with      this Document of Principles, and shall sign this Document of Principles      and shall undertake to abide by the provisions hereof and of the Sale      Agreements, the co-ownership agreement and any existing agreement with a      third party. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.6 | If      the shares in the Management Company are registered directly in the names      of the parties, then wherever in this Document of Principles a transfer      and/or sale and/or allotment of shares in the Joint Company is referred to      this shall also mean the Management Company, all in the same      ratio. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 17.  | Handling      of legal matters |
|-----------|--------------------------------|

| 17.1 | It      is agreed that handling of the legal aspects connected with “the      residential precinct” shall be entrusted to the law office of Goldfarb,      Levy, Eran, Meiri, Tsafrir & Co., in accordance with the fees      agreement attached to this Document of Principles as Appendix      C and the handling of the legal aspects connected with the      Commercial Precinct will be entrusted to the attorneys who will be decided      by Blue Square in accordance with a fees agreement that was attached to      this Document of Principles and Appendix      D. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18. | Liability      and indemnity |
|-----|------------------------------|

| 18.1 | Each      party will be liable on its own for the fulfillment of all its obligations      under this Document of Principles, in full and punctually on due      date. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.2 | Each      party (in this clause below – “the Indemnifying Party”)      shall indemnify the other party and/or the Joint Company, as the case may      be (hereinafter in this clause – “the Indemnified Party”),      in respect of any damage and/or loss and/or expense that may be incurred      by the Indemnified Party in respect of a claim and/or demand the      Indemnified Party has been ordered to pay and which arises from an act      and/or omission of the Indemnifying Party, which constitutes a material      breach by that party of this Document of Principles and/or of the Sale      Agreement and/or of the Co-ownership Agreement, which has not been cured,      provided that the Indemnified Party delivered written notice to the      Indemnifying Party with regard to the claim and/or the demand as      aforesaid, immediately same was received by it, and gave the Indemnifying      Party a fair opportunity of defending it, and did not compromise without      the written consent of the Indemnifying Party, or a judgment was granted      which ordered such payment in favor of such third party, the execution of      which has not been stayed. Without derogating from the foregoing, if an      attachment is imposed over the assets and/or rights of the Indemnified      Party, the Indemnifying Party shall attend to the immediate removal of the      attachment, including by way of furnishing collateral security and      guarantees to the third party who requests the attachment, upon the      fulfillment of conditions which oblige the Indemnifying Party to indemnify      the Indemnified Party in accordance with the  foregoing. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19. | Reimbursement      of expenses for payment toconsultants |
|-----|----------------------------------------------------------|

| 19.1 | The      Company shall bear the full expenses that are incurred by the parties,      plus V.A.T. as prescribed by law, which were disbursed up to and prior to      the date of signing of this Document of Principles, all against vouchers      and receipts, and shall do so not later than 20 business days from the      date of signing of this Document of Principles. The foregoing shall      include the Company bearing the full expenses mentioned in Appendix      E to this Document ofPrinciples. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20. | Letting      of areas |
|-----|-----------------------|

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| 20.1 | The      Mall Company will let to Blue Square or to any member of the Blue Square      Group, an area of 400 sq.m., whether as one unbroken area on floor minus      one or on the commercial level of the fabric building (for residential      purposes) or in two sections on the above-mentioned levels, all at the      election of Blue Square, for purposes of a supermarket / convenience      stores / organic products store, against rentals per gross sq.m. that will      be equivalent to the average rentals per gross sq.m. of five (5) AM-PM      branches whose rentals per sq.m. are the highest of the branches of the      aforesaid chain in Tel Aviv. The lease period will be for a long term and      will be renewed from time to time at Blue Square’s request, but not for      more than 24 years and eleven months, and in each period which renews as      aforesaid the rentals will be fixed afresh according to the format      specified above. Blue Square’s aforesaid right will remain in      force so long as the shops have not been let to third parties. The parties      agree that no supermarket or convenience store of a similar type to the      stores of the type operated by the Blue Square Group shall be operated in      the Commercial Precinct, except those of the Blue Square      group. |
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| 20.2 | It      is further agreed that if Blue Square or any one on its behalf should      request to hire areas that exceed the abovementioned areas but under no      circumstances more than 1,500 sq.m. gross (which include the areas      mentioned in Clause 20.1 above), then and in that event Gindi will have a      corresponding right to hire areas (up to 1100 sq.m.) in the same area, and      location and on identical conditions. This right will be available to Blue      Square subject to the condition that areas remain both for Blue Square as      well as for Gindi.  In such case Gindi will have the right to      let such areas to any third party who may wish to hire same and all the      revenues in respect of such areas shall belong to Gindi    alone. |
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| 20.3 | It      is agreed that the supply of gas to units in the Residential Precinct and      in the Commercial Precinct shall be performed by Dorgas at competitive      prices that shall be agreed upon withit. |
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| 21. | Guarantees |
|-----|------------|

| 21.1 | Blue      Square shall cause a situation that Blue Square Real Estate Ltd. (Blue      Square Real Estate) shall, subject to the fulfillment of the conditions      precedent, sign a guarantee for the performance of the obligations of Blue      Square pursuant to this Document of Principles. In addition, Blue Square      shall sign the guarantees that are required from it in the scope of the      Purchase Agreements and in the scope of the contractual arrangement with      the Lending Bank. |
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| 21.2 | Gindi      shall cause a situation that Gindi Investments 1 Ltd., and Dirot Yukra      Ltd., shall, subject to the fulfillment of the conditions precedent, sign      a guarantee for the performance of the obligations of Gindi pursuant to      this Document of Principles in a manner whereby Gindi Investment 1 Ltd.,      shall guarantee one half (50%) of the obligations of Gindi, and Dirot      Yukra will guarantee the full (100%) of the obligations of Gindi. In      addition Gindi Investments 1 Ltd. and Dirot Yukra shall sign the      guarantees that are required from them in the scope of the Purchase      Agreements and in the scope of the contractual arrangement with the      Lending Bank, according to the aforesaid  division. |
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| 21.3 | If      guarantees that have been given by Blue Square Real Estate or by Dirot      Yukra and Gindi Investments 1, or by any one on their behalf, as the case      may be, be realized, then the guarantor whose guarantee has been realized      shall be indemnified by the other in an amount equivalent to one half of      the amount of realization plus expenses incurred in the matter and      together with interest at a rate of prime plus 6% per annum in respect of      the realized amount from the date of the realization and up to the date of      actual payment. It is hereby agreed that the failure of either of the      parties to abide by the provisions of this clause shall be deemed to be a      material breach and in such case the provisions of Clause 14 (dilution)      shall apply, mutatis mutandis. |
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| 22. | Conditions      precedent |
|-----|---------------------------|

| 22.1 | The      signing of the Sale Agreements with the Sellers and the fulfillment of the      conditions precedent. If this condition precedent is not fulfilled, then      the provisions of this Document of Principles the time for fulfillment of      which is not contingent upon the Sale Agreements coming into force will      apply, such as: each party bearing one half of the expenses which have      been incurred and/or which may be incurred by the  parties. |
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| 22.2 | Approval      by the authorized organs of Blue Square to entering into this Document of      Principles. |
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| 22.3 | Approval      by the authorized organs of Gindi to entering into this Document of      Principles. |
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| 23. | Full      extent of obligations |
|-----|---------------------------------|

| 23.1 | This      document fully reflects, on an updated basis, everything that has been      agreed between the parties and cancels any prior document. All the      documents made between the parties or anyone on their behalf prior to this      document are null and void as if never made and in particular the document      dated January 20, 2010. |
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| 23.2 | This      document shall not be deemed to be an agreement in favor of a third      party. |
|------|-------------------------------------------------------------------------------------------|

| 24.  | Resolution      of disputes |
|-----------|-----------------------------|

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| 25. | The      parties will be prohibited from encumbering their rights, directly or      indirectly, pursuant to the Sale Agreements and/or this Agreement and/or      their rights in the Property Sold, except in favor of the Lending Bank      only and subject to the provisions of this Document of      Principle.  Notwithstanding the foregoing it is agreed that in a      situation in which either of the parties to this Agreement requests to      provide the companies with loans together with the Lending Bank, then and      in that event, subject to obtaining the consent of the Lending Bank, the      parties will be entitled to encumber their rights as aforesaid in favor of      such party, under an encumbrance ranking pari passu with the Lending Bank,      or by a second ranking encumbrance which ranks behind the Lending Bank,      provided that the encumbrance shall conform, mutatis mutandis, with the      construction loan documents that will be signed with the Lending      Bank. |
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| 26. | The      parties shall act in such a way that within 60 days a detailed agreement      will be signed between them which regulates the relationship between the      parties on the basis of the principles set forth in this Document of      Principles and until such time as the aforesaid detailed agreement is      signed, the provisions of this Document of Principles shall apply to and      be binding on the parties. |
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| 27. | Interpretation |
|-----|----------------|

|   | This      document shall be interpreted and construed solely according to what is      stated herein. Drafts and/or documents that were made and/or exchanged      between the parties prior to this document shall be deemed never to have      been made and it shall not be possible to make use thereof for purposes of      interpretation of this document. |
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| /s/ Dror Moran, Zeev Stein |   | /s/   |
|----------------------------|--------|-------|
| Blue      Square           |   | Gindi |

|   | 1. | That      the declarations and the undertakings that have been given by Gindi Trade      Tel Aviv Ltd. and Gindi Housing Tel Aviv Ltd. (hereinafter – “Gindi”) in the scope of      this Document of Principles are true and correct and are up to      date. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | We      are fully conversant with the provisions of this Document of Principles      and we declare and undertake that we have the capability of complying with      all the obligations of Gindi under this Document of Principles, in      accordance with the contents of Paragraph 3  below. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | We      are guarantors to Blue Square for the fulfillment of all Gindi’s      obligations under this Document of Principles, including payment of all      the payments which Gindi is obliged to pay in accordance      therewith. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | Our      abovementioned obligations are absolute, irrevocable and unconditional,      and included in this nothing in our undertakings to Blue Square is      contingent upon a prior reference by Blue Square to Gindi and/or the      exhausting of any proceedings and/or remedies that are available to Blue      Square pursuant to the Document of Principles and/or according to any      law. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 5. | The      parties waive their rights under Sections 5, 6 and 7 of the Guarantee Law      and the necessity for prior reference to them as  aforesaid. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------|

| /s/                  |
|----------------------|
| Dirot      Yukra Ltd |

| /s/ Yitzhak Cobos        |
|--------------------------|
| Yitzhak      Cobos, Adv. |

|   | 1. | That      the declarations and the undertakings that have been given by Gindi Trade      Tel Aviv Ltd. and Gindi Housing Tel Aviv Ltd. (hereinafter – “Gindi”) in the scope of      this Document of Principles are true and correct and are up to      date. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | We      are fully conversant with the provisions of this Document of Principles      and we declare and undertake that we have the capability of complying with      all the obligations of Gindi under this Document of Principles, in      accordance with the contents of Paragraph 3  below. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | We      are guarantors to Blue Square for the fulfillment of all Gindi’s      obligations under this Document of Principles, including payment of all      the payments which Gindi is obliged to pay in accordance      therewith. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | Our      abovementioned obligations are absolute, irrevocable and unconditional,      and included in this nothing in our undertakings to Blue Square is      contingent upon a prior reference by Blue Square to Gindi and/or the      exhausting of any proceedings and/or remedies that are available to Blue      Square pursuant to the Document of Principles and/or according to any      law. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 5. | The      parties waive their rights under Sections 5, 6 and 7 of the Guarantee Law      and the necessity for prior reference to them as  aforesaid. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------|

| /s/                           |
|-------------------------------|
| Gindi      Investments 1 Ltd. |

| /s/ Yitzhak Cobos        |
|--------------------------|
| Yitzhak      Cobos, Adv. |

|   | 1. | That      the Declarations and Undertakings that were given by Blue Square Real      Estate Tel Aviv Market Residential Ltd. and Blue Square Real Estate Tel      Aviv Market Housing Ltd. (hereinafter – “Blue Square”) in the      scope of this Document of Principles are true and correct and are up to      date. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | We      are fully conversant with the provisions of this Document of Principles      and we declare and undertake that we have the capability of complying with      all the obligations of Gindi under this Document of Principles, in      accordance with the contents of Paragraph 3  below. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | We      are guarantors to Blue Square for the fulfillment of all Gindi’s      obligations under this Document of Principles, including payment of all      the payments which Gindi is obliged to pay in accordance      therewith. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | Our      abovementioned obligations are absolute, irrevocable and unconditional,      and included in this nothing in our undertakings to Blue Square is      contingent upon a prior reference by Blue Square to Gindi and/or the      exhausting of any proceedings and/or remedies that are available to Blue      Square pursuant to the Document of Principles and/or according to any      law. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | The      parties waive their rights under Sections 5, 6 and 7 of the Guarantee Law      and the necessity for prior reference to them as  aforesaid. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------|

| /s/ Dror Moran, Zeev  Stein       |
|-----------------------------------|
| Blue      Square Real Estate Ltd. |

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| /s/ Yael Avner        |
|-----------------------|
| Yael      Avner, Adv. |

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