---

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Exhibit 1.2

# AMENDED AND RESTATED
ARTICLES OF ASSOCIATION

# OF

# OPTIBASE LTD.

# (THE
COMPANY)

# CONTENTS

|Paragraph     | Subject                                                                    | Page
|------------- | -------------------------------------------------------------------------- | ----
|
|
|
|
|Chapter One   |                                                                            |     
|             
|1.            | Introduction                                                               | 3   
|2.            | Public Company                                                             | 5   
|3.            | The Company's Purpose                                                      | 5   
|4.            | The Company's Objects                                                      | 5   
|5.            | Limitation of Liability                                                    | 5   
|             
|Chapter Two   |                                                                            | 6   
|             
|6.            | The Share Capital                                                          | 6   
|7.            | The Issue of Shares and Other Securities and the repurchase of shares      | 7   
|8.            | Calls for Payment                                                          | 7   
|9.            | The Company's Register of Shareholders and the Issue of Share Certificates | 9   
|10.           | Transfer of the Company's Shares                                           | 10  
|             
|11.           | Lien                                                                       | 12  
|12.           | Alterations to the Share Capital                                           | 13  
|             
|Chapter Three |                                                                            | 15  
|             
|13.           | The General Meeting's Powers                                               | 15  
|14.           | Annual and Special General Meetings and Class Meetings                     | 16  
|15.           | Convening of General Meetings                                              | 17  
|16.           | The General Meeting's Agenda                                               | 18  



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|              |                                                                |   
|------------- | -------------------------------------------------------------- | --
|17.           | The Discussion at General Meetings                             | 18
|18.           | Voting by Shareholders                                         | 20
|19.           | The Appointment of a Proxy                                     | 22
|20.           | Voting Instrument                                              | 24
|             
|Chapter Four 
|             
|21.           | The Board of Directors' Powers                                 | 27
|22.           | The Appointment of Directors and Termination of Their Office   | 27
|23.           | The Directors' Acts                                            | 31
|24.           | Board of Directors' Committees                                 | 34
|25.           | The Board of Directors' Chairman                               | 35
|             
|Chapter Five  |                                                                | 37
|             
|26.           | The General Manager                                            | 37
|27.           | Secretary, Internal Auditor and Other Officials in the Company | 39
|28.           | Auditor                                                        | 40
|             
|Chapter Six   |                                                                | 41
|             
|29.           | Permitted Distribution                                         | 41
|30.           | Dividend and Bonus Shares                                      | 41
|31.           | Purchase of the Company's Shares                               | 44
|             
|Chapter Seven |                                                                | 45
|             
|32.           | Insurance of Officers                                          | 45
|33.           | Indemnity of Officers                                          | 35
|34.           | Exemption of Officers                                          | 46
|35.           | Insurance, Exemption and Indemnity - General                   | 46
|             
|Chapter Eight |                                                                | 47
|             
|36.           | Merger                                                         | 47
|38.           | Winding Up                                                     | 47
|39.           | The Sale of the Company's Assets                               | 47
|             
|Chapter Nine  |                                                                | 48
|             
|40.           | Notices                                                        | 48

2

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# CHAPTER ONE 
GENERAL

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

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

| | shareholder
 any person to whose credit a share is registered with a member of the Stock
Exchange (as defined in the Companies Law) and such share is included among the shares
registered in the shareholders register of the Company in the name of a registration
Company, or a person registered as a shareholder in the Companys register of
shareholders; financial statements  the financial statements
which the Company must prepare pursuant to the law;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | periodic
report  as defined in Chapter Two of the Securities (Periodic and
Immediate Reports), Regulations 5730-1970 or any securities regulations replacing them;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | law the
provisions of any law prevailing in the State of Israel;
| | -------------------------------------------------------------------

| | director as
defined in section 1 of the Companies Law, including an alternate or attorney;
| | ---------------------------------------------------------------------------------------------

| | the Companies Law  the Companies Law, 5759-1999;
| | ---------------------------------------------------

| | the Securities Law  the Securities Law, 5728-1968;
| | -----------------------------------------------------

| | business day - Sundays to Thursdays, other than religious and public holidays in the State
of Israel;
| | -------------------------------------------------------------------------------------------------------

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

| | office the
Companys registered office;
| | ------------------------------------------

| | securities shares,
debentures, capital notes, securities convertible into shares and rights to any of the
aforegoing, issued by the Company;
| | -----------------------------------------------------------------------------------------------------------------------------------------------

| | the Companies Ordinance  the Companies Ordinance (New Version), 5743-1983;
| | -----------------------------------------------------------------------------

3

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| | ordinary majority  a majority of more than half the votes of the shareholders
entitled to vote and voting themselves, by proxy or through a voting instrument;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | special majority  a majority of more than three quarters of the votes of the
shareholders entitled to vote and voting themselves, by proxy or through a voting
instrument;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | articles
 the Companys articles as formulated herein or as altered, expressly or
pursuant to the law;
| | ---------------------------------------------------------------------------------------------------------

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

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

| | personor
persons-Including a corporation.
| | ---------------------------------------------

| | year and
month-a Gregorian month or year.
| | ---------------------------------------------

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

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

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

| | The
headings in these articles are meant for the purpose of convenience only and shall not be
used for the interpretation of these articles
| | -------------------------------------------------------------------------------------------------------------------------------------------

| | Provisions
of the Companies Law which are dispositive shall apply to the Company, to the extent that
it is not otherwise provided in these articles and to the extent that there is no
contradiction between them and between the provisions of these articles.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4

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| | 1.3 | Amendment If
a resolution to amend these articles is recommended by the Board of Directors, such
recommended resolutions adoption in a General Meeting requires a simple majority.
In any other case a resolution adopted in a General Meeting approved by a special
majority is required to approve any amendment of these articles.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

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

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

| | The
Companys purpose is according to its Amended and Restated Memorandum of
Association. If the memorandum is silent with regard to the Companys purpose, than
it will act pursuant to business considerations to make profits; however, the Company may
contribute a reasonable amount for an appropriate cause, even if the contribution is not
within the framework of the said business considerations.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

| | The
Company shall engage in any Lawful business.
| | ------------------------------------------------

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

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

5

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# CHAPTER TWO  THE
COMPANYS SHARE CAPITAL

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

| | 6.1 | The
Companys authorised share capital is NIS 3,900,000 divided into 30,000,000 ordinary
shares of NIS 0.13 par value each (hereinafter referred to as share, ordinary
share, shares or ordinary shares, as the case may be). The
Company may alter the authorised share capital in accordance with the provisions of the
Companies Law and of these articles.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

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

| | 6.4 | The provisions of these articles in respect of shares shall also apply to other securities
issued by the Company, mutatis mutandis.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------

|7. | The
Issue of Shares and Other Securities and the repurchase of shares
|-- | ---------------------------------------------------------------------

| | 7.1 | The Companys board of directors may issue shares and other securities of the
Company, up to the limit of the Companys authorised share capital. If the
Companys share capital includes a number of classes of shares and securities, shares
and securities exceeding the limit of the authorised share capital of such class shall not
be issued. In such regard, securities convertible or exercisable into shares shall be
deemed to have been converted or exercised on the date of their issue.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

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

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

6

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

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

| | 7.7 | The
Company may at any time and from time to time, subject to the Companies Law, purchase
back or finance the purchase of any shares or other securities issued by the Company, in
such manner and under such terms as the Board of Directors shall determine, whether from
any one or more shareholders. Such purchase shall not be deemed as payment of dividends
and no security holder will have the right to require the Company to purchase his
securities or offer to purchase securities from any other security holders.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

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

| | 8.2 | The
call shall determine the date by which the amount specified therein must be paid,
together with interest, linkage and the expenses incurred as a result of the non-payment,
at the rates and in the amounts prescribed by the board of directors. Such date shall not
be less than 14 days from the date of the call.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

| | 8.3 | Any
amount which pursuant to a shares allotment conditions is payable at the time of
the allotment or at a fixed time, on account of the amount of the share or for premium,
shall be deemed in respect of the articles a call duly made and notified, and the payment
date is the date fixed for payment. In the event of non-payment, all the paragraphs of
the articles dealing with the payment of interest, linkage and expenses, the forfeiture
of shares and the like and all the other paragraphs hereof relating to the matter shall
apply as though the said amount had been duly called and notified.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7

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| | 8.4 | The
board of directors may distinguish between the shareholders in relation to the amounts of
the calls and/or their payment times.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------

| | 8.5 | Joint
holders of a share shall be jointly and severally liable for payment of the calls made on
such share.
| | --- | -----------------------------------------------------------------------------------------------------------

| | 8.6 | Any
payment on account of a share shall first be attributed on account of the nominal value
and only thereafter on account of the premium in respect of any share.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.7 | A call may be cancelled or postponed to another date, as resolved by the board of
directors. The board of directors may waive all or any of the interest, linkage and
expenses.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.8 | The board of directors may accept from a shareholder willing to pay in advance payments on
account of his shares in addition to amounts actually called, and the board of directors
may pay such shareholder interest on the amounts paid in advance as aforesaid, or on such
part thereof as exceeds the amount called on account of the shares, in relation to which
the payment was made in advance, or come to any other arrangement with him which is such
as to compensate him for the advance payment.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.9 | A shareholder shall not be entitled to his rights as shareholder, including dividend,
unless he has paid all the amounts detailed in the calls made on him, together with
interest, linkage and expenses, if any, unless otherwise prescribed by the board of
directors.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.10 | The board of directors may sell, re-allot or otherwise transfer any share forfeited in
such manner as it resolves, including without consideration, provided that the Company is
paid the full nominal value in respect of such share.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.11 | The board of directors may, at any time prior to selling or otherwise transferring the
forfeited share, cancel the forfeiture on such conditions as it resolves.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.12 | A shareholder whose shares have been forfeited shall, notwithstanding the forfeiture, be
liable to pay the Company all the calls not paid in relation to such shares prior to the
forfeiture, together with interest, linkage and expenses up to the date of the payment as
though the shares had not been forfeited, and to comply with all the other claims and
demands enforceable by the Company in relation to the shares up to the date of the
forfeiture, without a deduction or discount for the value of the shares on the date of the
forfeiture. His obligation shall only come to an end after the Company has received the
full payment specified at the time of the shares issue.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

8

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| | 8.13 | The board of directors may collect the calls not paid in respect of the shares forfeited
or some of them, as it deems fit, but shall not be obliged to do so.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.14 | Share forfeitures shall result, at the time of the forfeiture, in the cancellation of any
right in the Company and any claim or demand vis-a-vis it in relation to the share, save
for those rights and obligations which are excluded from this rule pursuant to these
articles or which the law grants or imposes on the former shareholder.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

| | 9.1 | The
Company shall,  through its secretary,  keep a register of  shareholders  and register of
material                     shareholders.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------

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

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

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

| | 9.5 | If a share certificate is destroyed, spoiled, lost or damaged, the board of directors may
order the cancellation thereof and the issue of a new certificate in place thereof,
provided that the share certificate is delivered to the Company and destroyed by it, or
that it is proved to the satisfaction of the board of directors that the certificate has
been lost or destroyed and that the Company has received security to the satisfaction of
the board of directors against any possible damage. A reasonable sum as may be determined
by the board of directors from time to time shall be paid in respect of every certificate
issued pursuant to this article.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

9

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

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

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

| | 
| | 

| | Transferdeed
| | ------------

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

| | As witness our hands on ___________________.
| | --------------------------------------------

| |                                     |                                   
| | ----------------------------------- | ----------------------------------
|
|
|
|
| | The Transferor -                    | The Transferee -                  
| | Name:                               | Name:                             
| | Signature:                          | Signature:                        
| |                                    
| | Witness to Transferor's Signature - | Witness to Transferee's Signature-
| | Name:     , Adv.                    | Name:     , Adv.                  
| | License No.                         | License No.                       
| | Signature:                          | Signature:                        

10

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

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

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

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

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

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

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

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

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

11

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

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

|11. | Lien
|--- | ----

| | 11.1 | The Company shall have a first and paramount lien on all the shares not paid in full which
are registered in the name of any shareholder, and over the proceeds from the sale
thereof, in relation to monies (whether presently payable or not) called or payable at a
fixed time in respect of such shares.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

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

| | 11.2 | In order to realize the lien, the board of directors may sell the shares to which the lien
applies, or any of them, in such manner as it deems fit. No sale as aforesaid shall be
effected until after the date specified for payment and after written notice has been
given to the shareholder of the Companys intention to sell the shares, and the
amounts are not paid within 14 days of such notice.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.3 | The net proceeds from any such sale, after payment of the sale expenses, shall be applied
towards the discharge of the debts or obligations of such shareholder and the balance (if
any) shall be paid to him.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.4 | If shares are sold in order to realize a lien through prima facie use of the powers given
above, the board of directors may enter these shares in the register of shareholders in
the purchasers name, and the purchaser shall not be liable to check the legality of
the acts or the application of the purchase money. After the said shares are registered in
the purchasers name in the register of shareholders, no person shall be entitled to
appeal the validity of the sale.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

12

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|12. | Alterations
to the Share Capital
|--- | --------------------------------

| | The
general meeting may at any time resolve by an ordinary majority to do any of the
following acts.
| | ----------------------------------------------------------------------------------------------------

| | 12.1 | Increasing
the authorised share capital
| | ---- | ---------------------------------------

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

| | 12.2 | Classes
of shares
| | ---- | -----------------

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

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

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

| | 12.3 | Consolidation
of the share capital
| | ---- | ----------------------------------

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

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

13

---

---

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

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

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

| | 12.4 | Cancellation
of unallotted share capital
| | ---- | ----------------------------------------

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

| | 12.5 | Sub-division
of the share capital
| | ---- | ---------------------------------

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

14

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---

# CHAPTER THREE 
GENERAL MEETINGS

|13. | The
General Meetings Powers
|--- | ----------------------------

| | 13.1 | Matters
within the general meetings authority
| | ---- | ----------------------------------------------

| | The
Companys resolutions on the following matters shall be passed by the general
meeting:
| | ------------------------------------------------------------------------------------------

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

| | (b) | the
appointment or renewal of the appointment of the auditor, the termination of
                    his office or the non-renewal thereof and the determination of his
remuneration                     in accordance with the provisions of articles 14.1 (b)
and 28 below;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | the
appointment of directors, including external directors, and the termination
                    of their offices in accordance with article 22.3 below;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------

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

| | (e) | alterations
to the Companys share capital, in accordance with the
                    provisions of article 12 above;
| | --- | ----------------------------------------------------------------------------------------------------------------------

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

| | (g) | any
resolution which pursuant to the law or in accordance with these articles
                    requires to be adopted by resolution of a general meeting;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.2 | The
general meeting's authority to transfer powers between the organs
| | ---- | ---------------------------------------------------------------------

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

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

15

---

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|14. | Annual
and Special General Meetings and Class Meetings
|--- | ------------------------------------------------------

| | 14.1 | Annual
meetings
| | ---- | ---------------

| | The
annual general meeting shall be held every year by no later than the end of 15 months from
the last annual general meeting, at such time and place as may be determined by the Board.
These general meetings shall be called annual meetings.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

| | (1) | the
appointment of directors and the termination of their office in accordance
               with article 22 below;
| | --- | --------------------------------------------------------------------------------------------------------------------

| | (2) | the
appointment of the auditor or the renewal of his office and the board of
               directors authorisation to determine of his remuneration, subject to
the                provisions of article 28.3 below.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | The
annual meeting shall be convened in order to:
| | --- | -------------------------------------------------

| | (1) | discuss
the financial statements and the board of directors report                submitted
by the Company pursuant to the Securities Regulations as at 31st                December
of the calendar year preceding the year in which the general meeting is
               being held;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | receive
the board of directors report on the auditors remuneration,                as
provided in article 28.3 below.
| | --- | -----------------------------------------------------------------------------------------------------------------------

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

| | 14.2 | Special
meetings
| | ---- | ----------------

| | General
meetings of the Company which are not convened pursuant to article 14.1 above shall be
called special meetings.
| | -------------------------------------------------------------------------------------------------------------------------

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

| | 14.3 | Class
meetings
| | ---- | --------------

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

16

---

---

|15. | Convening
of General Meetings
|--- | -----------------------------

| | 15.1 | Convening
the annual meeting
| | ---- | ----------------------------

| | The
board of directors shall convene annual meetings in accordance with the provisions of
article 14.1 above.
| | -------------------------------------------------------------------------------------------------------------

| | 15.2 | Convening
a special meeting
| | ---- | ---------------------------

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

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

| | (b) | one
or more shareholders holding at least 5% of the voting rights in the           Company.
| | --- | -------------------------------------------------------------------------------------------

| | If
the board of directors does not convene a general meeting as aforesaid, the person
requisitioning the meeting, and where shareholders are involved  such part of them
as holds at least one half their voting rights in the Company, may convene the meeting
themselves, provided that it shall not be held more than three months after the date the
requisition was made, and the meeting shall be convened, insofar as possible, in the same
manner as meetings are convened by the board of directors.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

| | 15.3 | The
time for calling a special meeting pursuant to a requisition
| | ---- | ----------------------------------------------------------------

| | Where
the board of directors is requisitioned to call a special meeting, as provided in
paragraph 15.2 above, it shall do so within 21 days of the requisition being submitted,
for a date that shall not be later than 35 days from the date on which the notice of the
special meeting is published.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 15.4 | Notice
of a general meeting
| | ---- | ---------------------------

| | 15.4.1 | Unless
a shorter period is permitted by law, notice of a general meeting shall be given in the
manner hereinafter mentioned, to all shareholders entitled to attend and vote at such
meeting. No separate notice shall be given to registered shareholders of the Company.
Notices shall be given in accordance with Article 40.
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 15.4.2 | The
notice of the general meeting shall specify the type of meeting, the place and time at
which the meeting shall be convened, its agenda, a summary of the proposed resolutions,
the majority required to pass the resolutions and the date determining the shareholders entitlement
to participate in and vote at the general meeting according to paragraph 17.1 below.
| | ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

17

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|16. | The
General Meetings Agenda
|--- | ----------------------------

| | 16.1 | The
general meetings agenda shall be prescribed by the board of directors and shall
also include matters in respect of which a special meeting is required as provided in
article 14.2 above, and matters obliged in accordance with the provisions of article 16.2
below.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 16.2 | One or more shareholders holding at least 1% of the Companys share capital may ask
the board of directors to include a matter on the agenda of a general meeting to be held
in the future. The board of directors shall include such a matter on the agenda provided
that in its discretion such matter is suitable for discussion at a general meeting of the
Company.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 16.3 | A request as aforesaid in Article 16.2 above shall be lodged with the Company at least
seven days prior to the giving of notice of the convening of the general meeting, and
there shall be attached thereto a draft of the resolution proposed by the shareholder.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 16.3 | The
general meeting may only pass resolutions on the matters on its agenda.
| | ---- | ---------------------------------------------------------------------------

| | 16.4 | So long as not otherwise obliged by the law, the general meeting may pass or defeat a
proposed resolution that was on the general meetings agenda the text or a summary
description of the main points of which was published by the Company, including with
slight changes; however, it may not pass a resolution materially different from the
proposed resolution.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17. | The
Discussion at General Meetings
|--- | ----------------------------------

| | 17.1 | Entitlement
to participate in a vote
| | ---- | ------------------------------------

| | Subject
to the provisions of section 182(c) of the Companies Law, the shareholders who are
entitled to participate in and vote at a general meeting shall be the shareholders on the
date prescribed in the resolution to call the general meeting, provided that such date is
not more than forty (40) days nor less than four (4) days prior to the date of the
general meeting (or any longer or shorter period permitted by law, including regulations
promulgated pursuant to the Companies Law).
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 17.2 | Quorum
| | ---- | ------

| | No
discussion may be commenced at a general meeting unless a quorum is present at the time of
a discussion. Two shareholders present in person or by proxy, or who have sent the Company
a voting instrument indicating the way in which they are voting, and holding or
representing at least thirty three and one third percent of the voting rights in the
Company, shall constitute a quorum.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

18

---

---

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

| | 17.3 | The
general meeting's adjournment in the absence of a quorum
| | ---- | ------------------------------------------------------------

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

| | 17.4 | The
general meetings chairman
| | ---- | ------------------------------

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

| | The
meetings chairman shall not have an additional or casting vote (without derogating,
however, from the rights of such meetings chairman to vote as a shareholder or proxy
of a shareholder if, in fact, he is also a shareholder or such proxy).
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 17.5 | Adjourned
meeting
| | ---- | -----------------

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

19

---

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|18. | Voting
by Shareholders
|--- | ----------------------

| | 18.1 | Passing
a resolution
| | ---- | --------------------

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

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

| | 18.2 | Examining
the majority
| | ---- | ----------------------

| | 18.2.1 | The
majority shall be examined through a poll, each shareholder being entitled at the time of
voting to one vote in respect of each share held by him which has been fully paid or the
calls in respect of which have been fully paid.
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.2.2 | The
chairmans declaration that a resolution at the general meeting has been passed or
defeated, unanimously or by a particular majority, shall constitute prima facie evidence
of that stated therein.
| | ------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.3 | Right
to participate and vote
| | ---- | -----------------------------

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

| | 18.4 | Confirmation
of title
| | ---- | ---------------------

| | A
shareholder in whose favor a share is registered with a stock exchange member and such
share is included amongst the shares entered in the register of shareholders in the name
of a registration company may not participate in and vote at a general meeting unless he
has given the Company confirmation of title as prescribed by the board of directors at
least two business days prior to the date of the general meeting.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.5 | Personal
interest in resolutions
| | ---- | --------------------------------

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

20

---

---

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

| | 18.6 | Disqualification
of voting instruments
| | ---- | --------------------------------------

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

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

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

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

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

| | 18.7 | Voting
by a legally incapacitated person
| | ---- | ----------------------------------------

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

| | 18.8 | Voting
by joint shareholders
| | ---- | ----------------------------

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

| | 18.9 | Minutes
of the general meeting
| | ---- | ------------------------------

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

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

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

21

---

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| | 18.10 | A defect in convening or conducting the general meeting, including a defect deriving from
the non-fulfillment of any provision or condition laid down in the Law or the
Companys articles, including with regard to the manner of convening or conducting
the general meeting, shall not disqualify any resolution passed at the general meeting and
shall not affect the discussions which took place thereat.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|19. | The
Appointment of a Proxy
|--- | --------------------------

| | 19.1 | Voting
through a proxy
| | ---- | ----------------------

| | A
shareholder who is entered in the register of shareholders may appoint a proxy to
participate and vote in his stead, at a particular general meeting or at general meetings
of the Company in general, personally or through a voting instrument, provided that the
proxy appointment instrument is given to the Company at least two business days prior to
the date of the general meeting. In the event that the proxy appointment instrument is not
for a particular general meeting, a proxy appointment instrument deposited prior to one
general meeting shall also be valid for subsequent general meetings. Notwithstanding the
aforesaid, the chairman of the meeting may, at his discretion, accept such proxy
appointment after such time if he so deems fit at his discretion. If the proxy appointment
is not received as aforesaid in this article, it shall not be valid at such meeting
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

| | A
proxy need not be a shareholder of the Company.
| | -------------------------------------------------

| | 19.2 | The
proxy appointment instruments form of wording
| | ---- | --------------------------------------------------

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

22

---

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# Proxy Appointment
Instrument

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

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

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

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

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

| |  | ___________________Signature
| |  | ----------------------------

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

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

| | 
| | 

| | 19.3 | Voting
pursuant to a proxy appointment instrument shall be legal even if prior thereto the
appointor dies or becomes legally incapacitated or bankrupt, or in the case of a
corporation  is liquidated or cancels the proxy appointment instrument or transfers
the shares in relation to which it is given, unless written notice is received at the
Companys office prior to the meeting that such an event has occurred.
Notwithstanding the aforesaid the chairman of the meeting may, at his discretion, accept
such a notice also during the meeting if he shall so deem fit at his discretion.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

23

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---

| | 19.4 | The proxy appointment shall state the class and number of shares in respect of which it is
given. If the proxy appointment does not state the number of shares in respect of which it
is given or states a number of shares which exceeds the number registered in the name of
the shareholder, the proxy instrument shall be deemed to have been given in respect of all
the shares of the shareholder according to the registration in the Companys
register.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 19.5 | If the proxy appointment is given in respect of a number of shares which is less than the
number of shares registered in the name of the shareholder, the shareholder shall be
deemed not to have participated in the voting in respect of the excess shares and the
proxy appointment shall be valid in respect of the number of shares stated therein.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20. | Voting
Instrument
|--- | -----------------

| | 20.1 | A shareholder may vote at the general meeting through a voting instrument on the matters
specified below, unless the Company is legally entitled to a full or partial exemption
from the sending of voting instruments in general or in particular circumstances. This
paragraph shall only enter into force on the entry of sections 87-89 of the Companies Law
into force.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | the
appointment and dismissal of directors;
| | --- | -------------------------------------------

| | (b) | approving
acts with interested parties;
| | --- | ---------------------------------------

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

| | (d) | a
merger pursuant to section 320 of the Law;
| | --- | --------------------------------------------

| | (e) | any
matter which the articles provide may be voted upon through a voting
                    instrument;
| | --- | --------------------------------------------------------------------------------------------------------

| | (f) | any
additional matter specified in the law.
| | --- | -------------------------------------------

| | 20.2 | The
voting instruments form of wording
| | ---- | ---------------------------------------

| | The
voting instrument shall be in the following form of wording, so long as the law does not
prescribe another binding form of wording, in which case this form of wording shall apply
mutatis mutandis. The Companys secretary or anyone authorised by the Companys
board of directors to call the meeting may adapt the form of wording of the voting
instrument in accordance with the resolutions on the agenda.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

24

---

---

# Voting Instrument

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

| | To [Companys Name] [Company's Address]
| | --------------------------------------

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

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

| | I
   the    undersigned,    ___________________,     Identity/Registration    No.
   __________,    of ____________________,  registered  holder/holder of a suitable proxy
 appointment  instrument which is annexed hereto (*) of __________  (**) shares  ordinary
of NIS _____n.v.  each hereby give notice that my vote at the meeting of the  Company
 and at any  adjourned  meeting of that  meeting  thereof is as follows:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|No. of Resolution on the
Agenda | Subject of theResolution | The Vote (***) | Shareholder's PersonalInterest in the Resolution(****)
|------------------------------- | ------------------------ | -------------- | ------------------------------------------------------
|
|                                |                          |                |                                                       
|                                |                          |                |                                                       
|                                |                          |                |                                                       

| | (*) | If
the shares are held through a registration company, confirmation of title
                    must be annexed.
| | --- | -----------------------------------------------------------------------------------------------------------------

| | (**) | If
the shareholder wishes to vote differently for any part of his shares, a
                    separate voting instrument must be submitted for every quantity of
shares in                     respect of which he votes differently.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (***) | X
must be marked in accordance with the relevant choice. If more than one choice
                    is selected for a particular resolution, the vote on such resolution
shall be                     disqualified.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (****) | In
resolutions the majority required to pass which includes the votes of persons
                    who do not have a personal interest in the approval, X must be marked
in the                     appropriate place  whether there is or is not a personal
interest as                     aforesaid. If X is not marked  the vote on such
resolution shall be                     disqualified.
| | ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

25

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| | 20.3 | Sending
a voting instrument
| | ---- | ---------------------------

| | The
voting instrument shall be sent by the Company to the shareholders entered in the Companys
register of shareholders and entitled to vote at the general meeting, together with the
notice of the general meeting.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | If
notice of the general meeting is published in a newspaper or in any other manner that is
not personal notice to the shareholders through the mail, the voting instrument shall be
sent immediately upon the notices publication.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
voting instrument shall be sent by the Company at its expense.
| | ------------------------------------------------------------------

| | 20.4 | The
manner of using a voting instrument
| | ---- | ---------------------------------------

| | A
voting instrument reaching the Companys registered office at least two business days
prior to the date of the general meeting and not disqualified by the Companys
secretary shall be considered participation and voting by the shareholder who sent it for
all intents and purposes, including for the purpose of the quorum.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | A
voting instrument received by the Company as provided in this article in respect of a
particular matter not voted upon at the general meeting shall be considered abstention for
the purpose of the resolution on the meetings adjournment and shall be reckoned at
the adjourned meeting in accordance with the way of voting appearing therein.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 20.5 | Notice
of position
| | ---- | ------------------

| | The
board of directors and anyone on whose due requisition a special meeting is convened may
send the shareholders a notice of position in order to persuade the shareholders to vote
in a certain way on the matters to be voted upon in the voting instrument. The notice of
position shall be sent at the Companys expense together with the voting instrument.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | If
a general meeting is called on one of the matters enumerated in article 20.1 above, a
shareholder may approach the Company with a request that it send a notice of position on
his behalf to the Companys other shareholders. Unless otherwise provided in the law,
a notice of position as aforesaid shall be sent at the expense of the shareholder and
shall only be sent if delivered to the Companys registered office at least 10 days
prior to the general meeting.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

26

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# CHAPTER FOUR  THE
BOARD OF DIRECTORS

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

| | 21.1 | The
board of directors' powers are as specified in the law and the provisions of these
articles.
| | ---- | ------------------------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

| | The
number of directors in the Company shall be not less than three (3) nor more than nine
(9) including the external directors, unless the general meeting otherwise resolves.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 22.2 | The
directors identity
| | ---- | -----------------------

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

| | 22.2.2 | A
corporation  may hold office as a director in the Company,  subject to the provisions of
                                article 22.6 below.
| | ------ | ----------------------------------------------------------------------------------------------------------------------------------------------

27

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

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

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

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

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

| | (d) | The
provisions of paragraphs 22.3(a) to (c) above shall not apply to the
                    appointment and tenure of external directors, in respect of whom the
provisions                     of the Companies Law shall apply.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | No
person other than a person who officiated as a director up to the annual
                    meeting, shall be appointed as a director at the annual meeting,
unless                     recommended for appointment by the board, or unless a
shareholder of the company                     who wishes to propose a candidate shall
have lodged at the office of the                     Company, not later than within seven
days after the notice of the meeting has                     been given, a document in
writing signed by the shareholder notifying his                     intention to propose
such candidate for appointment as a director, to which                     document there
shall be attached the consent of the candidate to officiate as a
                    director and his/her resume.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

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

28

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

| | A
director may from time to time appoint an alternate for himself (hereinafter referred to
as alternate), dismiss such alternate and appoint another alternate instead of
any alternate whose office has been vacated for any reason, for a particular meeting or on
a regular basis, provided however that such alternate is approved in a resolution approved
by at least a majority of the Companys directors. A person who is not qualified to
be appointed as a director and a person holding office as a director or alternate shall
not hold office as an alternate.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 22.6 | Attorney
of a corporation holding office as director
| | ---- | ----------------------------------------------------

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

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

| | Each
director and each alternate director may appoint a representative to participate and vote
on his behalf in any Board or Boards committee meeting. Such appointment can be
either general or for particular meeting or for several meetings. In case the director or
the alternate attended such meeting, the empowered representative can not vote in place of
his appointer. Such appointment shall be valid in accordance with its terms or until
terminated by the appointer.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 22.8 | The
manner of appointing or dismissing an alternate or attorney of a corporation holding
office as a director
| | ---- | -------------------------------------------------------------------------------------------------------------

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

29

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| | 22.9 | Various
provisions in respect of alternates and attorneys of corporations holding office as
directors
| | ---- | -----------------------------------------------------------------------------------------------------

| | The
following provisions shall apply in respect of the attorneys of directors, where the
directors are corporations, and in respect of alternates:
| | --------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | any
person, whether or not he is a director, may serve as the attorney of a
                    corporation holding office as a director, and one person may serve as
the                     attorney of several corporations holding office as directors;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | the
attorney of a corporation holding office as director shall have  in
                    addition to his own vote if he himself is a director  a number
of votes                     equal to the number of corporations holding office as
directors for whom he is                     attorney;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | an
alternate and the attorney of a director which is a corporation shall have
                    all the powers vested in the director for whom he is serving as
alternate or                     attorney. Notwithstanding the aforesaid, an alternate or
attorney shall not have                     the power to vote at such meetings at which
the director himself is present;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | the
office of an alternate or attorney of a director which is a corporation
                    shall automatically be vacated if the office of the director for whom
or which                     he is acting as alternate or attorney is vacated.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 22.10 | Termination
of the office of a director
| | ----- | ---------------------------------------

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

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

| | (b) | if
he is declared bankrupt or settles with his creditors within the framework of
               bankruptcy proceedings;
| | --- | -----------------------------------------------------------------------------------------------------------------------

| | (c) | if
he is declared legally incapacitated;
| | --- | ----------------------------------------

| | (d) | on
his death, and in the case of a corporation  if a resolution is passed
               to wind it up voluntarily or if a liquidation order is given in respect of
               thereof;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | if
he is dismissed from his office following a resolution passed by the
               Companys general meeting, before the end of his term of office;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) | if
he is convicted of an offence as mentioned in section 232 of the Companies
               Law;
| | --- | -------------------------------------------------------------------------------------------------

| | (g) | if
his office is terminated by the board of directors, in accordance with the
               provisions of section 231 of the Companies Law.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------

30

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| | 22.11 | The
implications of the termination of a director's office on the board of directors'
operation
| | ----- | -----------------------------------------------------------------------------------------------

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

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

| | 22.12 | The
board of directors members remuneration
| | ----- | ---------------------------------------------

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

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

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

|23. | The
DirectorsActs
|--- | ------------------

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

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

| | (b) | The
board of directors chairman shall convene the board of directors
                    pursuant to the Companys requirements and at least once a year,
in a                     manner enabling the Company to comply with the provisions of the
law.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

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

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

31

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

| | 23.2.1 | Notice
of a board of directors meeting may be given orally or in writing, provided that
the notice is given at least three business days prior to the date fixed for the meeting,
unless all the members of the board of directors or their alternates or attorneys agree
to a shorter time.
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

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

| | 23.2.2 | Where
an alternate or attorney has been appointed, notice shall be sent to the alternate or the
attorney, unless the director has given notice that he wishes the notice to be sent to
him as well.
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 23.2.3 | The
notice calling the meeting shall include the place and date of the board of directors meeting,
arrangements with regard to the manner of conducting the meeting (where media are being
used) and details of the matters on the agenda, and any other material which the board of
directors chairman wishes to attach to the notice of the meeting.
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 23.2.4 | Notwithstanding
anything to the contrary herein, failure to deliver notice to a director of any such
meeting in the manner required hereby may be waived by such director, and a meeting shall
be deemed to have been duly convened if such defective notice, or failure to deliver such
notice is waived prior to action being taken at such meeting, by all directors entitled
to participate at such meeting to whom notice was not duly given as aforesaid. Without
derogating from the foregoing, no director present at the commencement of a meeting of
the board of directors shall be entitled to seek the abolishment of any proceedings or
resolutions adopted at such meeting on account of any defect in the notice of such
meeting relating to the time or the place thereof.
| | ------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

32

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

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

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

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

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

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

| | The
quorum for meetings shall be a majority of the members of the board of directors who are
not legally prevented from participating at the meeting, or any other quorum prescribed by
a majority of the members of the board of directors from time to time.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 23.5 | Holding
a meeting by media
| | ---- | --------------------------

| | The
board of directors may hold the board of directors meeting through the use of any
media, provided that all the directors participating may hear each other simultaneously.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

| | 23.6 | Voting
by the board of directors
| | ---- | --------------------------------

| | Issues
arising at board of directors meetings shall be decided by a majority of votes of
the directors present (or participating, in the case of voting by media) and voting, each
director having one vote, subject to the provisions of article 22.9(b) above with regard
to alternates and attorneys of directors which are corporations.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 23.7 | Passing
resolutions without convening
| | ---- | -------------------------------------

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

| | In
case such resolutions were passed, as aforesaid, the chairman of the board shall write the
resolutions protocol and indicate specifically that it was agreed upon by all directors in
writing, orally or by other means of media.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

33

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| | 23.8 | Resolution
approved by media
| | ---- | ----------------------------

| | A
resolution approved by media by the directors shall be treated as a resolution duly passed
at a meeting of the board of directors, and the provisions of paragraph 23.6 above shall
apply thereto.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

| | 23.9 | Validity
of the directors acts
| | ---- | -------------------------------

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

| | 23.10 | Minutes
of board of directors meetings
| | ----- | ---------------------------------------

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

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

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

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

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

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

34

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

| | 24.3 | The meetings and discussions of the board of directors committees shall be governed
by the provisions regarding the meetings of the directors, mutatis mutandis, so long as
other provisions are not prescribed by the directors in such regard, and provided that the
quorum for meetings of such committees shall be at least two members.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 24.4 | A resolution passed or an act done by a board of directors committee shall be
treated as a resolution passed or act done by the board of directors, unless expressly
otherwise prescribed by the board of directors for a particular matter or in respect of a
particular committee.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

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

| | (a) | The
board of directors shall elect one of its members to serve as its chairman
                    and shall specify, in the appointment resolution, the term for which
he shall                     hold office.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | If
not otherwise provided in the resolution appointing him, the board of
                    directors chairman shall be elected each calendar year at the
first board                     of directors meeting held after the annual meeting
at which the                     Companys directors are appointed.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | So
long as the board of directors chairman holds office as a director of
                    the Company, he shall continue to serve in such capacity until
someone else is                     appointed in his stead.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | If
the board of directors chairman ceases to hold office as a director of
                    the Company, the board of directors shall elect a new chairman at the
first                     board of directors meeting held thereafter, who shall
serve in such                     capacity for the term specified in the appointment
resolution, and if no term is                     specified  until the appointment
of a chairman as provided in paragraph                     25.1(b) above.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | If
the board of directors chairman is absent from a meeting, the board of
                    directors shall elect one of its members to conduct the meeting and
to sign the                     discussion minutes; however, the person elected shall not
have an additional or                     casting vote in the board of directors votes.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

35

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

| | (a) | The
board of directors chairman shall conduct the board of directors                    meetings
and shall sign the discussion minutes.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------

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

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

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

| | (a) | The
board of directors chairman shall not serve as the Companys
                    general manager, unless appointed in accordance with the provisions
of article                     26.2 below.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

36

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# CHAPTER FIVE 
OFFICERS OF THE COMPANY, WHO ARE NOT DIRECTORS, AUDITOR

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

| | 26.1 | The
appointment and dismissal of the general manager
| | ---- | ----------------------------------------------------

| | (a) | The
board of directors shall appoint a general manager for a fixed term or for
                    an unlimited term.
| | --- | ---------------------------------------------------------------------------------------------------------------------

| | The
board of directors may appoint more than one general manager.
| | -----------------------------------------------------------------

| | (b) | Determining
the general managers remuneration and employment terms shall                     be
subject to the approval of the board of directors, in such manner as it deems
                    fit. Where the general managers remuneration is considered an
                    exceptional transaction, and in case of an exemption,
insurance,                     indemnity undertaking or indemnity pursuant to permission
is given to the                     general manager, the board of director resolution
as aforesaid requires                     the prior approval of the audit committee.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | The
board of directors may from time to time remove or dismiss the general
                    manager from his office and appoint another or others in his stead.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 26.2 | The
board of directors chairman as general manager
| | ---- | ---------------------------------------------------

| | (a) | The
Companys general meeting may authorise the board of directors                    chairman
to fill the position of general manager or to exercise his powers,
                    provided that in counting the votes of the majority at the general
meeting at                     least two thirds of the votes of shareholders who are not
the Companys                     controlling shareholders or persons on their
behalf, present at the vote, shall                     be included. In counting the votes
of the shareholders, the votes of those                     abstaining shall not be taken
into account.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

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

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

37

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| | 26.3 | The
general manager's powers and his subordinacy to the board of directors
| | ---- | --------------------------------------------------------------------------

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

| | The
general manager shall have all the management and execution powers not vested by the law
or the articles in another organ of the Company, and he shall be under the supervision of
the board of directors and subject to its guidelines.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
general manager shall appoint and dismiss the Companys officers, save for the
directors and general manager, and shall determine the terms of their employment, unless
otherwise prescribed by the board of directors.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

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

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

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

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

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

| | The
general manager shall report to the board of directors chairman, on his demand, on
matters relating to the Companys business and the proper management thereof as
mentioned in article 22.1 above.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

38

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

| | The
general manager may, with the board of directors approval, delegate any of his
powers to another, who is subordinate to him; however, the delegation of powers as
aforesaid does not exempt the general manager from liability for the aforegoing.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

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

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

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

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

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

| | 27.2.1 | The
 Company's  organizational  superior  over  the  internal  auditor  is  the  board  of
                                directors' chairman.
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------

| | 27.2.2 | The
internal auditor shall submit a proposal for an annual or periodic work plan to the board
of directors, which shall be approved by the board of directors, with such changes as it
deems fit.
| | ------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 27.3 | Other
officials in the Company
| | ---- | ------------------------------

| | The
board of directors may resolve that in addition to the general manager and the secretary,
other officials shall be appointed by it, in general or in a particular case. In such
case, the board of directors shall appoint the official, define his position and powers
and determine his remuneration and employment terms.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

39

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

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

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

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

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

40

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# CHAPTER SIX 
SAFEGUARDING THE COMPANYS CAPITAL AND THE DISTRIBUTION THEREOF

|29. | Permitted
Distribution
|--- | ----------------------

| | 29.1 | Definitions
| | ---- | -----------

| | In
this chapter the following expressions shall bear the meanings attributed to them in
sections 1 and 302 of the Companies Law: distribution, purchase,
profits, profit criterion, adjusted financial
statements, surpluses.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 29.2 | Distribution
from profits alone
| | ---- | -------------------------------

| | The
Company shall not effect any distribution except from its profits, provided that there is
no reasonable apprehension that the distribution will deprive the Company of the ability
to perform its existing and expected obligations, when the time comes to perform them.
Notwithstanding the aforegoing, the Company may effect a distribution that is inconsistent
with the profit criterion if it receives the courts approval therefor.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 29.3 | Allotment
for a consideration lower than the nominal value
| | ---- | ----------------------------------------------------------

| | Where
the Company resolves to allot shares which have a nominal value for a consideration lower
than their nominal value, including bonus shares, it must convert into share capital part
of its profits, from premium on shares or from any other source included in its equity,
which are mentioned in its last financial statements, in an amount equal to the difference
between the nominal value and the consideration.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Notwithstanding
the aforegoing, the Company may, with the courts approval, allot shares for a
consideration lower than their nominal value.
| | --------------------------------------------------------------------------------------------------------------------------------------------

|30. | Dividend
and Bonus Shares
|--- | -------------------------

| | 30.1 | Right
to dividend or bonus shares
| | ---- | ---------------------------------

| | 30.1.1 | The
Companys shareholders have a right to receive dividend or bonus shares, if the
Company resolves thereon as provided in paragraph 30.2 below, in accordance with the
rights attached to any class of shares in such regard.
| | ------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 30.1.2 | Dividend
or bonus shares shall be distributed amongst anyone entered in the Companys
register of shareholders on the date of the resolution on the distribution or at a later
date, if another date is prescribed therefor in such resolution (hereinafter referred to
as the determining date).
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

41

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| | 30.1.3 | If
the Companys capital contains shares of different nominal values, dividend or bonus
shares shall be distribution pro rata to the nominal value of each share.
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 30.1.4 | Subject
to the special rights granted to special shares pursuant to their issue conditions, the
Companys profits, in respect of which a resolution was passed to distribute them as
dividend or bonus shares, shall be paid pro rata to the amount paid or credited as paid
on account of the nominal value of the shares held by the shareholder.
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 30.1.5 | If
not otherwise provided in the shares issue conditions or in the general meetings
resolution, all the dividends and bonus shares on shares which are not fully paid within
any period in respect of the dividends or bonus shares are payable shall be paid pro rata
to the amounts paid or credited as paid on the nominal value of the shares during any
part of the said period (pro rata temporis).
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 30.2 | The
Company's resolution to distribute dividend or bonus shares
| | ---- | ---------------------------------------------------------------

| | 30.2.1 | The
Companys resolution to distribute dividends, bonus shares or interim dividends on
account of future dividends, as it deems fit in accordance with the state of the Companys
profits and the terms and conditions thereof, shall be passed by the Companys board
of directors.
| | ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 30.2.2 | Funds
| | ------ | -----

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

| | 30.3 | Payment
of the dividend
| | ---- | -----------------------

| | 30.3.1 | Manner
of payment
| | ------ | -----------------

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

42

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

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

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

| | 30.3.2 | Unclaimed
dividend
| | ------ | ------------------

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

| | 30.3.3 | Dividend
in specie
| | ------ | ------------------

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

| | 30.4 | The
capitalisation of profits and the distribution of bonus shares
| | ---- | ------------------------------------------------------------------

| | 30.4.1 | Subject
to the provisions of paragraph 30 above, the Companys undistributed profits, or
premium on shares, or funds created from a revaluation of the Companys assets, or
funds created on an equity basis from the profits of affiliated companies, or from a
revaluation of the assets of affiliated companies and capital redemption funds  may
be capitalised and distributed amongst the entitled shareholders, pursuant to paragraph
31.1 above, to be held by them as capital, and all or any of the money from this
capitalisation shall be used in the name of such shareholders for the full payment, at
the nominal value or with such premium as the resolution prescribes, of shares
distributed in accordance therewith, and such distribution or payment shall be accepted
by such shareholders as full consideration for their benefit in the aforementioned
capitalised amount, as prescribed by the board of directors.
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
provisions of this chapter shall also apply to a distribution of debentures.
| | --------------------------------------------------------------------------------

43

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| | 30.4.2 | Where
the Company resolves to distribute bonus shares, it may resolve to transfer to a special
fund designated for a distribution of bonus shares in the future such amount the
capitalisation of which would be sufficient to allot to anyone who at such time has a
right to purchase shares of the Company (including a right which is only exercisable at a
later date) bonus shares of such nominal value as would have been due to him had he
exercised the right to purchase the shares prior to the determining date at the price of
the right in force at such time. If after the determining date the holder of the said
right exercises his right to purchase the shares or part thereof, the board of directors
shall allot him fully paid bonus shares at such nominal value and of such class as would
have been due to him had he exercised the right to purchase the shares which he actually
purchased prior to the determining date, by appropriate capitalisation that shall be
effected by the board of directors from the said special fund. With regard to determining
the nominal value of the bonus shares that are distributed, any amount transferred to the
special fund created in respect of a distribution of previous bonus shares shall be
treated as though already capitalised and as if shares entitling the holders of the right
to purchase shares of the Company to bonus shares had already been allotted therefrom.
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 30.4.3 | In
a distribution of bonus shares, all the Companys shareholders shall receive shares
of a uniform class or of the class which vested him with the rights to receive the bonus
shares, as prescribed by the board of directors.
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 30.4.4 | In
order to implement any resolution pursuant to the provisions of paragraph 30.4, the board
of directors may settle any difficulty arising in relation to a distribution of bonus
shares as it deems fit, and in particular may issue certificates for fractions of shares
and sell the fractions in order to pay the proceeds thereof to entitlees and may
determine the value for the purpose of distribution of certain assets and resolve that
payments in cash shall be made to the shareholders in reliance upon the value so
prescribed, or that fractions whose value is less than NIS 1 shall not be taken into
account for the purpose of adjusting the rights of all the parties. The board of
directors may pay cash or grant these particular assets to trustees on trust in favour of
the persons entitled to dividend or capitalised fund, as it deems beneficial.
| | ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|31. | Purchase
of the Companys Shares
|--- | --------------------------------

| | 31.1 | The
Company may purchase or finance the purchase, directly or indirectly, of shares of the
Company or of securities convertible into shares or exercisable into shares of the
Company, including undertakings to do any of the aforegoing, subject to compliance with
the condition of permitted distribution, as provided in paragraph 29 above.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 31.2 | If the Company purchases any of its shares, the share shall become a dormant share and
shall not vest any rights, so long as it is held by the Company.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | 31.3 | If a share of the Company is purchased by a subsidiary or by a corporation under the
Companys control, the share shall not vest voting rights, so long as it is held by
the said subsidiary or corporation.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

44

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# CHAPTER SEVEN 
INSURANCE, INDEMNITY AND EXEMPTION OF OFFICERS

|32. | Insurance
of Officers
|--- | ---------------------

| | 32.1 | The
Company may insure the liability of an officer therein to the fullest extent permitted by
law.
| | ---- | --------------------------------------------------------------------------------------------------

| | 32.2 | Without derogating from the aforesaid the Company may enter into a contract to insure the
liability of an officer therein for an obligation imposed on him in consequence of an act
done in his capacity as an officer therein, in any of the following cases:
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | a
breach of the duty of care vis-a-vis the Company or vis-a-vis another person;
| | --- | -------------------------------------------------------------------------------

| | (b) | a
breach of the fiduciary duty vis-a-vis the Company, provided that the officer
                    acted in good faith and had a reasonable basis to believe that the
act would not                     harm the Company;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | a
monetary obligation imposed on him in favor of another person.
| | --- | ----------------------------------------------------------------

| | (d) | any
other matter in respect of which it is permitted or will be permitted under
                    applicable law to insure the liability of an officer in the Company.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|33. | Indemnity
of Officers
|--- | ---------------------

| | 33.1 | The Company may indemnify an officer therein, to the fullest extent permitted by law.
Without derogating from the aforesaid the Company may indemnify an officer in the Company
for liability or expense imposed on him in consequence of an action made by him in the
capacity of his position as an officer in the Company, as follows:
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 33.1.1 | Any
financial liability he incurs or imposed on him in favor of another person in accordance
with a judgment, including a judgment given in a settlement or a judgment of an
arbitrator, approved by a court.
| | ------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 33.1.2 | Reasonable
litigation expenses, including legal fees, incurred by the officer or which he was
ordered to pay by a court, within the framework of proceedings filed against him by or on
behalf of the Company, or by a third party, or in a criminal proceeding in which he was
acquitted, or in a criminal proceeding in which he was convicted of a felony which does
not require a finding of criminal intent.
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 33.1.3 | Reasonable
litigation expenses, including legal fees he incurs due to an investigation or proceeding
conducted against him by an authority authorized to conduct such an investigation or
proceeding, and which was ended without filing an indictment against him and without
being subject to a financial obligation as a substitute for a criminal proceeding, or
that was ended without filing an indictment against him, but with the imposition of a
financial obligation, as a substitute for a criminal proceeding relating to an offence
which does not require criminal intent, within the meaning of the relevant terms in the
Companies Law.
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 33.1.4 | Any
other obligation or expense in respect of which it is permitted or will be permitted
under law to indemnify an officer in the Company.
| | ------ | ------------------------------------------------------------------------------------------------------------------------------------------

45

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| | 33.2 | Advance
indemnity
| | ---- | -----------------

| | The
Company may give an advance undertaking to indemnify an officer therein in respect of the
following matters:
| | ----------------------------------------------------------------------------------------------------------------

| | 33.2.1 | Matters
as detailed in Article 33.1.1, provided however, that the undertaking is restricted to
events, which in the opinion of the Board of Directors, are anticipated in light of the
Companys actual activity at the time of granting the obligation to indemnify and is
limited to a sum or measurement determined by the Board of Directors as reasonable under
the circumstances. The indemnification undertaking shall specify the events that, in the
opinion of the Board of Directors are expected in light of the Companys actual
activity at the time of grant of the indemnification and the sum or measurement, which
the Board of Directors determined to be reasonable under the circumstances.
| | ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 33.2.2 | Matters
as detailed in Article 33.1.2 and 33.1.3.
| | ------ | -------------------------------------------------

| | 33.2.3 | Any
matter permitted by applicable law.
| | ------ | ---------------------------------------

| | 33.3 | Retroactive
indemnity
| | ---- | ---------------------

| | The
Company may indemnify an officer therein, save for the events subject to any applicable
law.
| | ------------------------------------------------------------------------------------------------

|34. | Exemption
of Officers
|--- | ---------------------

| | The
Company may exempt an officer therein in advance and retroactively for all or any of his
liability for damage in consequence of a breach of the duty of care vis-a-vis the Company,
to the fullest extent permitted by law.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|35. | Insurance,
Exemption and Indemnity  General
|--- | --------------------------------------------

| | 35.1 | The above provisions with regard to insurance, exemption and indemnity are not and shall
not limit the Company in any way with regard to its entering into an insurance contract
and/or with regard to the grant of indemnity and/or exemption in connection with a person
who is not an officer of the Company, including employees, contractors or consultants of
the Company, all subject to any applicable law;
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 35.2 | Articles 32 through 35 shall apply mutatis mutandis in respect of the grant of insurance,
exemption and/or indemnification for persons serving on behalf of the Company as officers
in companies controlled by the Company, or in which the Company has an interest.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 35.3 | An undertaking to insure, exempt and indemnify an officer in the Company as set forth
above shall remain in full force and effect even following the termination of such officer
service with the Company.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

46

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# CHAPTER EIGHT 
MERGER, WINDING UP AND SALE OF THE COMPANYS ASSETS IN CONSIDERATION FOR SECURITIES

|36. | Merger
|--- | ------

| | Notwithstanding
the provisions of section 327(a) of the Companies Law, the majority required for
the approval of a merger by the general meeting or by a class meeting shall be an ordinary
majority of the votes of the shareholders entitled to vote and voting themselves.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|38. | Winding
Up
|--- | ----------

| | 38.1 | If the Company is wound up, voluntarily or otherwise, the liquidator may, with the general
meetings approval, distribute parts of the Companys property in specie amongst
the shareholders, and he may, with similar approval, deposit any part of the
Companys property with trustees in favour of the shareholders as the liquidator,
with the approval mentioned above, deems fit.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 38.2 | Subject to the special rights attached to shares, if shares are issued with special
rights, the Companys shares shall rank equally inter se in relation to the amounts
of capital paid or credited as paid on the nominal value of the shares, in connection with
the return of the capital and participation in a distribution of the Companys
surplus assets on winding up.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|39. | The
Sale of the Companys Assets in Consideration for Securities
|--- | ----------------------------------------------------------------

| | 39.1 | At the time of selling the Companys property, the board of directors, or the
liquidators (in the case of winding up) may, if so permitted in a resolution passed by the
Companys general meeting by an ordinary majority, accept fully or partially paid
shares, debentures or securities of another company, Israeli or foreign, incorporated or
about to be incorporated for the purpose of purchasing the Companys property, or
part thereof, and the directors (if the Companys profits so permit) or the
liquidators (in the case of winding up) may distribute the shares or securities mentioned
above or any other property of the Company amongst the shareholders, without realising
them or depositing them with trustees for the shareholders.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 39.2 | The general meeting may, in a resolution passed by the Companys general meeting by
an ordinary majority, resolve on a valuation of the securities or property mentioned above
at such price and in such manner as the general meeting resolves, and all the shareholders
shall be liable to accept any valuation or distribution permitted as aforesaid and waive
their rights in such regard, save, where the Company is about to be wound up or is in
winding up proceedings, for those legal rights (if any) which pursuant to the provisions
of the law may not be altered or qualified.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

47

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# CHAPTER NINE 
MISCELLANEOUS

|40. | Notices
|--- | -------

| | 40.1 | Notice or any other document which the Company shall deliver and which it is entitled or
required to give pursuant to the provisions of these Articles and/or any applicable law
shall be delivered by the Company to any person, in any one of the following manners as
the Company may choose: in person, by mail, transmission by fax or in electronic form
(including through the Internet). Notwithstanding anything to the contrary contained
herein and subject to the requirements of any applicable law, a notice to a shareholder
may alternatively be served, as a general notice to all shareholders, in accordance with
the rules and regulations of any applicable securities authority with jurisdiction over
the Company or in accordance with the rules of any stock market upon which the
Companys shares are traded.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 40.2 | All the notices which must be given to the shareholders shall be given, in relation to
shares which are jointly held, to the person whose name is entered first in the register
of shareholders and any notice given in such manner shall be adequate notice to all the
joint shareholders.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 40.3 | [Reserved]
| | ---- | ----------

| | 40.4 | Any
notice or other document delivered or sent to a shareholder in accordance with these
articles shall be deemed to have been duly delivered and sent in respect of all the
shares held by him (alone or together with others), even if such shareholder has passed
away at such time, or become bankrupt, or an order has been given for its winding up, or
a trustee or liquidator or receiver has been appointed for his shares (whether or not the
Company was aware thereof), until another person is entered in the register of
shareholders in his stead as the holder thereof, and the giving or dispatch of a notice
or document as mentioned above shall be deemed adequate delivery or dispatch to any
person who has a right in these shares.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 40.5 | Any notice or other document sent by the Company by mail in accordance with an address in
Israel shall be deemed to have been delivered within 48 hours of the letter containing the
notice or document being mailed, within 96 hours where the address is abroad, or on the
first day after transmission if transmitted by fax or in electronic form, and when coming
to prove the delivery it shall be sufficient to prove the letter containing the notice or
document contains the correct mailing, e-mail, or fax details as registered in the
register or any other address which the shareholder submitted in writing to the Company as
the address and fax or e-mail details for the submission of notices or other documents.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 40.6 | An accidental omission in giving notice of a general meeting to any shareholder or
non-receipt of notice of a meeting or any other notice by a shareholder shall not cause
the cancellation of a resolution passed at such meeting or cancellation of proceedings
based on such notice.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 40.7 | Every shareholder and every board of directors member may waive his right to receive
notice or his right to receive notice within a particular time and may agree that a
general meeting of the Company or a board of directors meeting, as the case may be,
be convened or take place despite the fact that he has not received notice thereof, or
despite the fact that the notice was not received by him within the required time, subject
to the provisions of any law prohibiting such waiver or consent.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

48

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