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Exhibit 1.1

# SYNERON MEDICAL LTD.

# ARTICLES OF ASSOCIATION

# As amended on
September 28, 2006



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# TABLE OF CONTENTS

|                                                    |   
|--------------------------------------------------- | --
|
|
|
|
|INTERPRETATION                                      | 1 
|NAME OF THE COMPANY                                 | 2 
|PURPOSE                                             | 2 
|CAPITAL, SHARES AND RIGHTS                          | 2 
|SHARE CERTIFICATES                                  | 3 
|TRANSFER OF SHARES                                  | 3 
|TRANSMISSION OF SHARES                              | 3 
|ALTERATIONS OF THE AUTHORIZED CAPITAL               | 4 
|MODIFICATION OF CLASS RIGHTS                        | 4 
|BORROWING POWERS                                    | 4 
|GENERAL MEETINGS                                    | 5 
|NOTICE TO GENERAL MEETINGS                          | 5 
|PROCEEDINGS AT GENERAL MEETINGS                     | 6 
|QUORUM                                              | 6 
|CHAIRMAN OF THE GENERAL MEETING                     | 6 
|VOTE OF SHAREHOLDERS                                | 7 
|DIRECTORS                                           | 8 
|POWERS, NUMBER OF DIRECTORS, COMPOSITION & ELECTION | 8 
|NOMINATION & REMUNERATION                           | 9 
|CHAIRMAN OF THE BOARD                               | 9 
|PROCEEDINGS OF THE DIRECTORS                        | 9 
|QUORUM                                              | 9 
|METHODS OF ATTENDING MEETINGS                       | 10
|ALTERNATE DIRECTOR                                  | 10
|COMMITTEES                                          | 11
|APPROVAL OF CERTAIN RELATED PARTIES TRANSACTIONS    | 11
|RECORDS & VALIDITY OF ACTS                          | 11
|GENERAL MANAGER (CHIEF EXECUTIVE OFFICER)           | 11
|INSURANCE, EXCULPATION, AND INDEMNITY               | 11
|APPOINTMENT OF AN AUDITOR                           | 13
|SIGNATORIES                                         | 13
|DISTRIBUTIONS                                       | 14
|REDEEMABLE SECURITIES                               | 14
|DONATIONS                                           | 14
|NOTICES                                             | 15



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ARTICLES OF ASSOCIATION
o f
SYNERON MEDICAL LTD.

INTERPRETATION

|1. | In
these  Articles  the  following  terms shall bear the  meanings  set  opposite  to them,
 unless        inconsistent with the subject or context:
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------

| | T E R M S          |  | M E A N I N G S                                                                                                                                                                                                                                                                                                                                                                  
| | ------------------ |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
|
|
|
| | These Articles     |  | These Articles of Association as may be amended from time to time.                                                                                                                                                                                                                                                                                                               
|
| | Auditor            |  | As defined in the Law.                                                                                                                                                                                                                                                                                                                                                           
|
| | Board              |  | The Board of Directors of the Company.                                                                                                                                                                                                                                                                                                                                           
|
| | CEO                |  | Chief Executive Officer, also referred to in the Law as the general manager.                                                                                                                                                                                                                                                                                                     
|
| | Class Meeting      |  | A meeting of the holders of a class of shares.                                                                                                                                                                                                                                                                                                                                   
|
| | Chairman           |  | Chairman of the Board.                                                                                                                                                                                                                                                                                                                                                           
|
| | The Company        |  | Syneron Medical Ltd.                                                                                                                                                                                                                                                                                                                                                             
|
| | Distribution       |  | As defined in the Law.                                                                                                                                                                                                                                                                                                                                                           
|
| | Simple Majority    |  | A majority of more than fifty percent (50%) of the votes cast.                                                                                                                                                                                                                                                                                                                   
|
| | The Law            |  | The Israeli Companies law of 1999.                                                                                                                                                                                                                                                                                                                                               
|
| | NIS                |  | New Israeli Shekel                                                                                                                                                                                                                                                                                                                                                               
|
| | The Office         |  | The registered office of the Company as may be re-located from time to time.                                                                                                                                                                                                                                                                                                     
|
| | Office Holder      |  | As such term is defined in the Law.                                                                                                                                                                                                                                                                                                                                              
|
| | Ordinary Shares    |  | The Company's Ordinary Shares, NIS 0.01 par value each.                                                                                                                                                                                                                                                                                                                          
|
| | Register           |  | Shareholders Register maintained by the Company.                                                                                                                                                                                                                                                                                                                                 
|
| | Shareholder        |  | As such term is defined in the Law.                                                                                                                                                                                                                                                                                                                                              
|
| | The Statutes       |  | The Law, the Israeli Companies Ordinance (New Version) 1983, the Israeli Securities Act of 1968 and all applicable laws and regulations applicable in any relevant jurisdiction (including without limitation U.S Federal laws and regulations), and rules of any stock exchange in which the Company's shares are registered for trading as shall be in force from time to time.
|
| | Supermajority Vote |  | a majority of seventy five percent (75%) or more of the votes cast.                                                                                                                                                                                                                                                                                                              

Page 1 of 16

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|2. | Words
importing the singular shall include the plural, and vice-versa. Words
                    importing the masculine gender shall include the feminine gender; and
words                     importing persons shall include corporate bodies.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | For
the avoidance of doubt, it is hereby clarified that the Law shall apply to these
provisions, unless otherwise implied or stipulated under these provisions. Any provision
or part thereof of these Articles, prohibited by applicable law, shall be ineffective,
without invalidating any other part of these Articles.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# NAME OF THE COMPANY

|3. | The
name of the Company is Syneron Medical Ltd.
|-- | -----------------------------------------------

# PURPOSE

|4. | The
Company may engage in any type of lawful business as may be determined by
                    the Board from time to time.
|-- | ------------------------------------------------------------------------------------------------------------------------------

# CAPITAL, SHARES AND
RIGHTS

|5. | The
authorized share capital of the Company is NIS 1,000,000 divided into
                    100,000,000 Ordinary Shares of NIS 0.01 each, subject to amendments
from time to                     time by resolutions of the general meeting of the
shareholders.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | All
issued and outstanding shares of the Company of the same class are of equal rights
between them for all intents and purposes concerning the rights set forth below.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
liability of each Shareholder for the Companys debts is limited to the full payment
of the original issue price of the shares first allotted to such Shareholder or his
predecessors. Once such price is paid by the original owner of shares, there is no
further liability of the holder and such holders transferees for the Companys
debts.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. | Each
issued Ordinary Share entitles its holder to the rights as described below:
|-- | --------------------------------------------------------------------------------

| | 6.1 | The
equal right to participate in and vote at the Companys general meetings, whether
ordinary meetings or special meetings, and each of the shares in the Company shall
entitle the holder thereof, who is present at the meeting and participating in the vote,
whether in person, or by proxy, to one vote.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.2 | The
equal right to participate in any Distribution.
| | --- | ---------------------------------------------------

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| | 6.3 | The
equal right to participate in the distribution of assets available for distribution in
the event of liquidation of the Company.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------

|7. | If
two or more persons are registered as joint holders of any shares, any one of
                    such persons may give effectual receipts for any dividend or other
moneys in                     respect of such share.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8. | To
the extent required by the Law a trustee must inform the Company of the fact
                    that such trustee is holding shares of the Company in trust for
another person                     at such time as may be required by the Law. The
Company shall register that fact                     in the Register in respect to said
shares. The trustee shall be deemed to be the                     sole holder of said
shares. The Company shall not be bound by or required to                     recognize
any equitable, contingent, future or partial interest in any share or
                    any right whatsoever in respect of any share other than an absolute
right to the                     entirety thereof in the registered holder.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# SHARE CERTIFICATES

|9. | A
shareholder who is registered in the Register is entitled to receive from the
                    Company, without payment and at such shareholders request,
within a period                     of three months after the allocation or registration
of the transfer, one share                     certificate with respect to all the shares
registered in his name, which shall                     specify the aggregate number of
the shares held by such shareholders. In the                     event of a jointly held
share, the Company shall issue one share certificate for                     all the
joint holders of the share, and the delivery of such certificate to one
                    of the joint holders shall be deemed to be delivery to all of them.
Every                     certificate shall be signed by two Office Holders of the
Company.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10. | A
share certificate that is defaced, destroyed or lost may be renewed based on
                    evidence and guarantees as the Board shall determined, from time to
time.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# TRANSFER OF SHARES

|11. | Subject
to the Statutes and all laws and regulations applicable in any relevant
                    jurisdiction or to any specific shareholder, and subject to the rules
of any                     stock exchange in which the Companys shares are (or
shall be) registered                     for trading, and subject to any applicable
agreements or undertakings of any                     specific shareholder, the shares
shall be freely transferable.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12. | Transfer
of shares shall be made in writing or other manner, in a form specified
                    by the Board or the transfer agent appointed by the Company, and such
transfer                     form should be delivered to the Office or to such transfer
agent, together with                     the certificates of the shares due to be
transferred, if such certificates have                     been issued. The transferee
shall be deemed to be the shareholder with respect                     to the transferred
shares only from the date of registration of his name in the
                    Register.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13. | The
Board may suspend the registration of transfers for such period of time as
                    the Board shall deem fit, provided that the period of closure of any
such book                     shall not exceed 30 days each year. The Company shall
notify the shareholders of                     such decision.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# TRANSMISSION OF SHARES

|14. | In
the case of the death, liquidation, bankruptcy, dissolution, winding-up or a
                    similar occurrence of a Shareholder, the legal successors of such
Shareholder                     shall be the only persons recognized by the Company as
having any title to such                     shares, but nothing herein contained shall
release the estate of the predecessor                     from any liability in respect
of such shares.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
legal successors may, upon producing such evidence of title as the Directors shall
require, be registered themselves as holders of the shares, or subject to the provisions
as to transfers herein contained, transfer the same to some other person.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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# ALTERATIONS OF THE
AUTHORIZED CAPITAL

|15. | Subject
to the Statutes, the General Meeting may from time to time resolve to:
|--- | ------------------------------------------------------------------------------

| | 15.1 | Alter
or add classes of shares that shall constitute the Companys authorized capital,
including shares with preference rights, deferred rights, conversion rights or any other
special rights or limitations.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 15.2 | Increase
the Companys registered share capital by creating new shares either of an existing
class or of a new class.
| | ---- | ---------------------------------------------------------------------------------------------------------------------

| | 15.3 | Consolidate
and/or split all or any of its share capital into shares of larger or smaller par value
than the existing shares.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------

| | 15.4 | Cancel
any registered shares not yet allocated, provided that the Company has made no commitment
to allocate such shares.
| | ---- | -------------------------------------------------------------------------------------------------------------------------

| | 15.5 | Reduce
the Companys share capital and any reserved fund for redemption of capital.
| | ---- | -----------------------------------------------------------------------------------

|16. | Except
as otherwise provided by or pursuant to these Articles or by the
                    conditions of issue, any new share capital shall be considered as
part of the                     original share capital, and shall be subject to the same
provisions of these                     Articles with reference to payment of calls,
lien, transfer, transmission,                     forfeiture and otherwise, which applies
to the original share capital.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# MODIFICATION OF CLASS
RIGHTS

|17. | If
at any time the share capital is divided into different classes of shares,
                    any change to the rights and privileges of the holders of any such
class of                     shares, shall require the approval of a Class Meeting of
such class of shares                      by a Simple Majority (unless otherwise
provided by the Statutes or by the                     terms of issue of the shares of
that class).
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
provisions of these Articles relating to General Meetings shall, mutatis mutandis, apply
to Class Meetings.
| | ---------------------------------------------------------------------------------------------------------------

|18. | The
rights and privileges of the holders of any class of shares shall not be
                    deemed to have been altered by creating or issuing shares of any
class,                     including a new class (unless otherwise provided by the terms
of issue of the                     shares of that class).
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# BORROWING POWERS

|19. | The
Company may, from time to time, raise or borrow or secure the payment of any
                    sum or sums of money for the purposes of the Company. The Company may
also raise                     or secure the payment or repayment of such sum or sums in
such manner and upon                     such terms and conditions in all respects as it
deems fit, and in particular by                     the issue of debentures or debenture
stock of the Company charged upon all or                     any part of the property of
the Company (both present and future) including its                     unissued and/or
its uncalled capital for the time being. Issuance of any series                     of
debentures shall require Board approval.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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# GENERAL MEETINGS

|20. | Annual
general meetings shall be held at least once a calendar year, at such
                    place and time as determined by the Board, but not later than fifteen
(15)                     months after the last Annual general meeting. Such general
meetings shall be                     called Annual Meetings and all other
general meetings of the Company                     shall be called Special Meetings.
The Annual Meeting shall appoint                     directors and the Auditor and shall
transact any other business required                     pursuant to these Articles or to
the Law, and any other matter as shall be                     determined by the Board.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21. | The
Board of Directors may convene a Special Meeting by its resolution, and is
                    required to convene a Special Meeting should it receive a request, in
writing,                     from a person or persons entitled, under the Companies Law,
to request such                     meeting.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Any
request for convening a meeting must specify the purposes for which the meeting is to be
called, shall be signed by the persons requesting the meeting, and shall be delivered to
the Companys registered offices. In addition, subject to the Law, the Board may
accept a request of a shareholder to include a subject in the agenda of a general
meeting, only if the request also sets forth: (a) the name and address of the Shareholder
making the request; (b) a representation that the Shareholder is a holder of record of
shares of the Company entitled to vote at such meeting and intends to appear in person or
by proxy at the meeting; (c) a description of all arrangements or understandings between
the Shareholder and any other person or persons (naming such person or persons) in
connection with the subject which is requested to be included in the agenda; and (d) a
declaration that all the information that is required under the Law and any other
applicable law to be provided to the Company in connection with such subject, if any, has
been provided. In addition, if such subject includes a nomination to the Board in
accordance with the Articles, the request shall also set forth the consent of each
nominee to serve as a director of the Company if so elected and a declaration signed by
each nominee declaring that there is no limitation under the Law for the appointment of
such nominee. Furthermore, the Board, may, in its discretion to the extent it deems
necessary, request that the Shareholders making the request provide additional
information necessary so as to include a subject in the agenda of a general meeting, as
the Board may reasonably require
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Board shall determine the agenda of any general meeting. The Board may resolve to adjourn
any meeting, until 48 hours prior to the designated date of such meeting.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Notice
to General Meetings
| | --------------------------

|22. | Notice
of a general meeting shall be given in such manner as set forth in the
                    Law and any of the regulations promulgated thereunder applying to the
Company.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
notice will be sent to those shareholders, who are registered in the Register on such
date as is determined by the Board, but in no event shall such date be less than seven
days prior to the meeting. The Company shall not be obligated to provide notice to
shareholders who are not included in the Register on the specified date, even if such
shareholders are entitled to vote at the meeting.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | A
general meeting that is subject to Article Seven of Chapter Two of the Third Part of the
Law (Voting by Proxy), shall convene no later than sixty (60) days from the date of
publication of the notice of the meeting
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|23. | The
accidental omission to give notice of any meeting to or the non-receipt of
                    any such notice by any of the Shareholders shall not invalidate any
resolution                     passed at any such meeting.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# PROCEEDINGS AT GENERAL
MEETINGS

| | Quorum
| | ------

|24. | No
business shall be transacted at any General Meeting of the Company unless a
                    quorum of Shareholders is present at the opening of the Meeting.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Save
as provided in the following Article with regard to an adjourned Meeting, the quorum for
any General Meeting shall be the presence of at least two Shareholders in person or by
proxy holding 40% or more of the voting rights in the Company.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|25. | If
within half an hour from the time appointed for the holding of a General
                    Meeting a quorum is not present, the General Meeting shall stand
adjourned to                     the same day one week later at the same time and place
or to such other day,                     time and place as the Board may indicate in a
notice to the Shareholders. At                     such adjourned Meeting the necessary
quorum for the business for which the                     original Meeting was called
shall be one Shareholder holding any number of                     shares.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | If
a General Meeting is convened by a request of a shareholder, as provided in Article 21
above, the required quorum for an adjourned meeting is as set forth in Article 24 above.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Chairman
of the General Meeting
| | -------------------------------

|26. | The
chairman (if any) of the Board shall preside as the chairman at every
                    General Meeting, but if there shall be no such chairman or if at any
meeting                     such chairman shall not be present within fifteen minutes
after the time                     appointed for holding the same, or shall be unwilling
to act as chairman, the                     Shareholders present shall choose a Director,
or if no Director be present or if                     all the Directors present decline
to take the chair, they shall choose a                     Shareholder present to be
chairman of the meeting.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|27. | The
chairman may, with the consent of a General Meeting at which a quorum is
                    present, and shall if so directed by the General Meeting, adjourn any
meeting                     from time to time and from place to place as the meeting
shall determine.                     Whenever a meeting is adjourned for more than 21
days, notice of the adjourned                     meeting shall be given in the same
manner as in the case of the original                     meeting. Save as aforesaid, no
Shareholder shall be entitled to any notice of an                     adjournment or of
the business to be transacted at an adjourned meeting. No                     business
shall be transacted at any adjourned meeting other than the business
                    which might have been transacted at the meeting from which the
adjournment took                     place.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|28. | A
vote in respect of the election of the chairman of the meeting or regarding a
                    resolution to adjourn the meeting shall be carried out immediately.
All other                     matters shall be voted upon during the meeting at such time
and order as decided                     by the chairman.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# VOTE OF SHAREHOLDERS

|29. | All
resolutions proposed at any General Meeting will require a Simple Majority,
                    unless otherwise required by the Statutes or these Articles. Except
as otherwise                     specified in these Articles, alteration or amendment of
these Articles shall                     require a Simple Majority.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|30. | At
all General Meetings a resolution put to the vote of the meeting shall be
                    decided upon by an open vote. A declaration by the chairman of the
meeting that                     a resolution has been carried, or has been carried
unanimously or by a                     particular majority, or rejected, or not carried
by a particular majority, shall                     be conclusive, and an entry to that
effect in the minutes of the meeting shall                     be conclusive evidence
thereof (without need to prove the number or proportion                     of the votes
in favor of or against such resolution).
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|31. | The
chairman of the meeting will not have a second and/or a casting vote. If the
                    vote is tied with regard to a certain proposed resolution such
proposal shall be                     deemed rejected.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|32. | If
two or more persons are jointly entitled to a share, the vote of the senior
                    one who tenders a vote, whether in person or by proxy, shall be
accepted to the                     exclusion of the votes of the other registered
holders of the share, and for                     this purpose seniority shall be
determined by the order in which the names stand                     in the Register.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|33. | A
proxy need not be a Shareholder of the Company.
|--- | -------------------------------------------------

|34. | The
instrument appointing a proxy shall be in writing signed by the appointer or
                    of his attorney duly authorized in writing. A corporate entity shall
vote by a                     representative duly appointed in writing by such entity.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Any
instrument appointing a proxy or a representative of a corporate entity (whether for a
specified meeting or otherwise) shall be in a form as the Board approves, from time to
time.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|35. | The
instrument of appointment must be submitted to the Office or such other
                    location determined by the Board, no later than 48 hours prior to the
first                     General Meeting to be attended by such proxy or representative.
The instrument                     of appointment shall automatically terminate and cease
to be of any force or                     affect on the anniversary (12 months) of the
date of the instrument of                     appointment, unless such instrument sets
out a different expiry date.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|36. | A
proxy may be appointed in respect of only some of the shares held by a
                    Shareholder, and a Shareholder may appoint more than one proxy, each
empowered                     to vote by virtue of some of the shares.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|37. | A
Shareholder being of unsound mind or pronounced to be unfit to vote by a
                    competent court of law may vote through a legally appointed guardian
or any                     other representative appointed by a court of law to vote on
behalf of said                     Shareholder.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Page 7 of 16

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|38. | A
Shareholder entitled to vote may signify in writing his approval of, or
                    dissent from, or may abstain from any resolution included in a proxy
statement                     furnished by the Company. A proxy statement may include
resolutions pertaining                     to such issues which are permitted to be
included in a proxy statement according                     to the Statutes, and such
other issues which the Board may decide, in a certain                     instance or in
general, to allow voting through a proxy statement. A Shareholder
                    voting through a proxy statement shall be taken into account in
determining                     presence of a quorum as if such Shareholder is present at
the meeting.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|39. | The
chairman of the general meeting shall be responsible for recording the
                    minutes of the General Meeting and any resolution adopted.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

# DIRECTORS

| | Powers,
number of directors, composition & election
| | ---------------------------------------------------

|40. | The
Board shall have and execute any powers and/or responsibility not
                    specifically allocated to the CEO by the Statutes or in these
Articles. The                     Board shall set the Companys policies and shall
supervise the execution of                     the powers and responsibilities of the
CEO.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|41. | The
Board shall consist of 7 directors as follows: 2 directors from Class 1, 2
                    directors from Class 2, 1 director from Class 3 and two external
directors as                     defined in the Law once appointed according to the
Statutes.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|42. | The
directors of the Company shall be elected only at Annual Meeting by a Simple
                    Majority, and shall not be elected at a Special Meeting, except as
otherwise                     provided in these Articles or by the Statutes.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Except
for external directors, the directors shall serve in office until the end of the third
Annual Meeting after the meeting at which they were elected. A director whose term of
office has expired may be re-elected.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | A
General Meeting may dismiss a director during the term only by a Supermajority vote
(except for External Directors  who may be dismissed only as set forth in the Law).
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|43. | Other
than external directors, the Board shall be divided into three classes as
                    set forth in Article 41 above. The directors of Class 1 that are
serving on the                     date of the effectiveness of these Articles will
continue to serve until the                     first Annual Meeting held in 2005. The
directors of Class 2 that are serving on                     the date of the
effectiveness of these Articles will continue to serve until the
                    first Annual Meeting held in 2006. The directors of Class 3 that are
serving on                     the date of the effectiveness of these Articles will
continue to serve until the                     first Annual Meeting held in 2007.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|44. | Should
a General Meeting not elect the number of new directors that were
                    scheduled to be elected at such meeting from a certain class, the
Board may fill                     the vacancy according to the provisions of Article 45
below.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|45. | Should
a director cease serving (the Retiring Director), the
                    remaining directors may continue to act, provided that their number
shall be not                     less than three (3). The Board may appoint a director in
place of a Retiring                     Director. The appointment of a director by the
Board shall be in effect until                     the end of the third Annual Meeting
after the meeting at which the Retiring                     Director was elected or until
that director shall cease serving in office                     pursuant to the
provisions of these Articles, if earlier.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Page 8 of 16

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|46. | The
term of office of a director shall commence on the date of such
                    directors appointment by the general meeting or by the Board or
on a later                     date, should such date be determined in the resolution of
appointment of the                     general meeting or of the Board.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|47. | An
amendment of Articles 40-47 requires a Supermajority vote.
|--- | -------------------------------------------------------------

| | Nomination
& remuneration
| | -------------------------

|48. | Candidates
for the Board shall be nominated by a committee appointed by the           Board.
|--- | --------------------------------------------------------------------------------------------

|49. | The
Company shall determine the remuneration of the directors in accordance with
          the Law.
|--- | ---------------------------------------------------------------------------------------------------

| | Chairman
of the Board
| | ---------------------

|50. | The
Board shall elect one of its members as Chairman. The Board may replace the
                    Chairman from time to time. The Chairman shall preside at meetings of
the Board,                     but if at any meeting the Chairman is not present within
(15) minutes after the                     time appointed for holding the meeting, the
directors shall choose a present                     director to be chairman of such
meeting.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# PROCEEDINGS OF THE
DIRECTORS

|51. | The
directors shall meet together for the dispatch of business, adjourn and
                    otherwise regulate their meetings as they think fit  subject to
these                     Articles. The Board shall meet no less than once every 3
calendar months.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Unless
otherwise determined by the Board, written notice of any meeting of the Board and the
agenda setting out the matters to be discussed at such meeting, shall be given to all
directors at least seventy two (72) hours (or such shorter notice as all the directors
may agree) before the meeting. The directors may waive the necessity of such notice
either beforehand or retrospectively.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Quorum
| | ------

|52. | No
business shall be transacted at any meeting of the Board unless a quorum of
                    Directors is present at the opening of the meeting. A quorum shall be
formed                     when there are present personally or represented by an
alternate director at                     least half of the Directors.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | If
a quorum is not present at the meeting of the Board within half an hour after the time
scheduled for the meeting, the meeting shall be adjourned to another time as shall be
decided by the Chairman, or in his absence, the directors present at the meeting,
provided that notice of twenty four (24) hours in advance shall be given to all the
directors of the time of the adjourned meeting. The quorum for the commencement of the
adjourned meeting shall be three members of the Board.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Page 9 of 16

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| | Methods
of Attending meetings
| | -----------------------------

|53. | Some
or all of the directors may attend meetings of the Board through computer
                    network, telephone or any other media of communication, enabling the
directors                     to communicate with each other, in the deemed presence of
all of them, provided                     that due prior notice detailing the time and
manner of holding a given meeting                     is served upon all the directors.
Any resolution adopted by the Board in such a                     meeting, pursuant to
the provisions of these Articles, will be recorded in                     writing and
signed by the Chairman (or in his absence by the chairman of the
                    meeting), and shall be valid as if adopted at a meeting of the Board
duly                     convened and held.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|54. | A
Director may signify his/her approval of or dissent from any resolution passed
                    or intended to be proposed at a meeting of the Board, or any
amendment in any                     such resolution, by written communication, including
fax or e-mail, to the                     Company, and such Director will be deemed to
have participated in the meeting                     for the purpose of constituting a
quorum.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|55. | A
resolution in writing signed by all the directors, or to which all the
                    directors have agreed in writing by mail, fax or electronic mail,
shall be as                     valid and effective for all purposes as if passed at a
meeting of the Board duly                     convened and held.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Any
such resolution may consist of several documents in like form, each signed by one or more
directors. Such resolution in writing (including facsimile) shall be effective as of the
last date appearing on the resolution, or if the resolution is signed in two or more
counterparts, as of the last date appearing on the counterparts.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|56. | While
exercising his/her voting right, each director shall have one vote.
                    Resolutions of the Board will be decided by a Simple Majority, except
as                     otherwise provided in these Articles or by the Statutes. In the
event the vote                     is tied, the Chairman of the Board shall not have a
casting vote, and such                     resolution shall be deemed rejected.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Alternate
Director
| | ------------------

|57. | Subject
to the Law, a director shall be entitled at any time and from time to
                    time to appoint in writing any person who is qualified to serve as a
director,                     to act as his/her alternate and to terminate the
appointment of such person. The                     appointment of an alternate director
does not negate the responsibility of the                     appointing director and
such responsibility shall continue to apply to such                     appointing
director  taking into account the circumstances of the
                    appointment.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Alternate
directors shall be entitled, while holding office, to receive notices of meetings of the
Board and to attend and vote as a director at any meetings at which the appointing
director is not present and generally to exercise all the powers, rights, duties and
authorities and to perform all functions of the appointing director.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
document appointing an alternate director must be submitted to the Chairman of the Board
no later than at the opening of the first Board meeting to be attended by such alternate
director.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | Committees
| | ----------

|58. | The
Board may set up committees and appoint members thereto subject to the
                    Statutes. A resolution passed or an act done by a such a committee
shall be                     treated as a resolution passed or act done by the Board,
unless expressly                     otherwise prescribed by the Board or The Statutes
for a particular matter or in                     respect of a particular committee.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|59. | Meetings
of committees and proceedings thereat (including the convening of the
                    meetings, the election of the chairman and the votes) shall be
governed by the                     provisions herein contained for regulating the
meetings and proceedings of the                     Board so far as the same are
applicable thereto.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Approval
of certain Related Parties transactions
| | ------------------------------------------------

|60. | A
transaction between the Company and an Office Holder, including transactions
                    concerning compensation of non-director Office Holders, and a
transaction                     between the Company and a third person in which an Office
Holder of the Company                     has a personal interest, which is not an
extraordinary transaction, will require                     only the approval of the
Board or a committee authorized by the Board.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Records
& Validity of Acts
| | --------------------------

|61. | The
resolutions of the Board shall be recorded in the minutes book of the
                    Company, signed by the Chairman or the chairman of a certain meeting.
Such                     signed minutes shall be deemed an accurate account of the
meeting and the                     resolutions resolved therein.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|62. | All
acts done bona fide by any meeting of the Board or of a committee of the
                    Board or by any person acting as a director, shall, notwithstanding
it be                     afterwards discovered that there was some defect in the
appointment of any such                     director or person acting as aforesaid, or
that they or any of them were                     disqualified, be as valid as if every
such person had been duly appointed and                     was qualified to be a
director.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# GENERAL MANAGER (CHIEF
EXECUTIVE OFFICER)

|63. | The
Board shall appoint at least one CEO, for such period and upon such terms as
                    the Board deems fit.
|--- | -------------------------------------------------------------------------------------------------------------------------

|64. | The
CEO shall have all managing and execution powers within the policies and
                    guidelines set forth by the Board, and shall be under the supervision
of the                     Board. The CEO may delegate any of his powers to his
subordinates, subject to                     the approval of the Board.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# INSURANCE, EXCULPATION,
AND INDEMNITY

|65. | The
Company may insure the liability of an Office Holder, subject to the
                    following provisions and the restrictions as set out in The Law.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Company may enter into a contract to insure the liability of an Office Holder for
liabilities imposed on him/her in consequence of an act performed in his/her capacity as
an Office Holder, in any of the following cases:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

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| | (b)
            a breach of the duty of loyalty to the Company, provided that the Office
Holder           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 act which is insurable under the Law.
| | ---------------------------------------------------------------

| | (e)
            If the insurance contract includes coverage for the company in addition to
the           coverage of the Office Holders, then the Office Holders shall have priority
over           the Company regarding receipt of insurance benefits under such contract.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|66. | The
Company may indemnify an Office Holder, subject to the following provisions
                    of this Article 66.
|--- | -----------------------------------------------------------------------------------------------------------------------

| | 66.1 | The
Company may undertake to indemnify an Office Holder for future obligation or expense
imposed on him/her in consequence of an act done in his/her capacity as an Office Holder
therein, as specified below:
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a)
            a monetary obligation imposed on him/her in favor of another person pursuant
to           a judgment, including a judgment given in settlement or a court approved
          settlement or arbitrators award;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)
            reasonable legal fees, incurred by an Office Holder or which he is ordered to
          pay by a court, in proceedings filed against him by the Company or on its
behalf           or by another person, or in a criminal charge of which he is acquitted,
or in a           criminal charge of which he is convicted of an offence that does not
require           proof of criminal intent.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)
            reasonable legal fees, including attorneys fees, incurred by an Office Holder
          in an investigatory proceeding or other proceeding filed by a governmental
          authority, which has terminated without the filing of criminal charges and
          without imposing a fine, or with imposing a fine in lieu of a criminal charge
          which does not require proof of criminal intent.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
termination of a proceedings without the filing of criminal charge in a matter in which a
criminal investigations was initiated  means the closing of such file in accordance
with Section 62 to the Criminal Procedure Act [Combined Version], 1982 (in this article
the Criminal Procedure Act), or the stay of proceedings by the attorney
general in accordance to section 231 of the Criminal Procedure.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | imposing
a fine in lieu of a criminal charge  a fine imposed in accordance with the
law in lieu of a criminal procedure, including an administrative fine according to the
Administrative Offense Law, 1985, a fine on offense that was determined as a fine offense
in accordance with the Criminal Procedure Act, or fine.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)
          any other obligation or expense which is allowable according to the Law.
| | ---------------------------------------------------------------------------------------

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| | 66.2 | The
Company may  undertake in advance to indemnify an Office  Holder for  obligation  and
expenses as        set forth below
| | ---- | ----------------------------------------------------------------------------------------------------------------------------

| | (a) | for
obligations and expenses as set out in Article 66.1(a) above, provided that
          such undertaking is limited to types of events which in the Boards opinion
          are foreseeable at the time of providing the indemnity undertaking in view of
          the Companys activities at that time, and in such amount and/or criteria
          as the Board deems foreseeable in view of the Companys activities at the
          that time and the undertaking instrument shall such events, sums and criteria
          will be detailed.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | for
obligations and expenses as set out in Articles 66.1(b)  66.1(d)
          inclusive.
| | --- | -------------------------------------------------------------------------------------------

| | 66.3 | Without
prejudice to the aforesaid provisions, the Company may retroactively indemnify an Office
Holder, for events specified in Article 66.1 above, beyond the limits set forth in
Article 66.2 above.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|67. | The
Company may waive any claim against an Office Holder in advance and for all
               or any of his liability for damage in consequence of a breach of his duty
of                care to the Company. Such wavier in advance shall not apply to breach
of duty of                care in a Distribution.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|68. | To
the extent not prohibited by the Statutes, the term in consequence of
               an act performed in his capacity as an Office Holder as used above,
shall                include an act performed as an office holder in any subsidiary or
affiliate of                the Company to which such Office Holder was appointed by the
Company.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|69. | The
above provisions with regard to insurance, exculpation and indemnification
               shall not limit the Company with regard to its entering into an insurance
               contract and/or with regard to indemnity and/or with regard to
exculpation:
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | in
connection with a person who is not an Office Holder of the Company,
               including employees, contractors or consultants of the Company, who are
not                Office Holders therein;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | in
connection with Office Holders of the Company  to the extent that the
               insurance and/or waiver and/or indemnification are not expressly
prohibited by                The Law.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|69A | The
provisions of Articles 65  68 shall not apply in the following cases: (a) breach of
the duty of loyalty to the Company, unless the Office Holder acted in good faith and had
reasonable foundation for presuming that the act would not harm the Company; (b) breach
of a duty of care committed intentionally or recklessly; (c) act done with intent to make
unlawful personal profit; or (d) fine or forfeit imposed upon the Office Holder, except
for a conviction in a felony which does not require criminal intent.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# APPOINTMENT OF AN AUDITOR

|70. | Subject
to the Statutes, the Annual Meeting shall appoint an Auditor for a
                    period ending at the next Annual Meeting, or for a longer period
 but no                     longer than until the third Annual Meeting after the
meeting at which the                     Auditor has been appointed. The same Auditor may
be re-appointed.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Subject
to the Statutes, the fees of the Auditor for the audit services shall be determined by
the Board or a committee of the Board if such determination was delegated to a committee.
The Board shall report the fees of the Auditor to the Annual Meeting.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# SIGNATORIES

|71. | Signatory
rights on behalf of the Company shall be determined from time to time           by the
Board.
|--- | -------------------------------------------------------------------------------------------------------

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# DISTRIBUTIONS

|72. | The
Board may decide upon a Distribution, subject to the provisions set forth in
                    the Law and these Articles.
|--- | --------------------------------------------------------------------------------------------------------------------------------

|73. | Whenever
the Board decides upon distribution of dividends (cash, shares or in
                    kind), the dividends shall be paid in the same manner to all the
outstanding                     shares having rights to receive dividends on the date of
the resolution (or a                     later date as determined by the Board), subject
to the preferred rights (if any)                     of any class of shares in respect of
the distribution.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|74. | Notice
of the declaration of any Distribution, shall be given to all registered
                    holders of shares eligible to such Distribution, as determined by the
Board.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|75. | The
Board will determine the method of payment of any Distribution. The receipt
                    of the person whose name appears on the record date on the Register
as the owner                     of any share, or in the case of joint holders, of any
one of such joint holders,                     shall serve as confirmation with respect
to all the payments made in connection                     with that share and in respect
of which the receipt was received. All dividends                     unclaimed after
having been declared may be invested or otherwise used by the
                    Directors for the benefit of the Company until claimed. No unpaid
dividend shall                     bear interest or accrue linkage differentials.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|76. | If
required in a Distribution to present a written contract between the Company
                    and the shareholders according to the Law, the Board may appoint one
                    representative on behalf of all the Shareholders entitled to receive
such                     Distribution and such appointment shall be deemed due
appointment by the all                     participating Shareholders.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|77. | For
the purpose of implementing of any resolution concerning any Distribution,
                    the Board may settle, as it deems fit, any difficulty that may arise
with                     respect to the Distribution, including to determine the value
for the purpose of                     the said Distribution of certain assets, and to
decide that payments in cash                     shall be made to the Shareholders based
on the value so determined, and to                     determine provisions with respect
to fractions of shares or with respect to the                     non-payment of small
sums.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# REDEEMABLE SECURITIES

|78. | The
Company shall be entitled to issue redeemable securities which are, or at
                    the option of the Company may be, redeemed on such terms and in such
manner as                     shall be determined by the Board. Redeemable securities
shall not constitute                     part of the Companys capital, except as
provided in the Law.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# DONATIONS

|79. | The
Company may make donations of reasonable amounts of money for purposes which
                    the Board deems to be worthy causes, even if the donations are not
made in                     relation to business considerations for increasing the Companys
profits.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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# NOTICES

|80. | Subject
to the Statutes, 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 the Statutes 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 by
electronic form.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Any
notice or other document which shall be sent shall be deemed to have reached its
destination on the third day after the day of mailing if sent by registered mail or
regular mail, or on the first day after transmission if delivered in person, transmitted
by fax or electronic form.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Should
it be required to prove delivery, it shall be sufficient to prove that the notice or
document sent 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.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Notwithstanding
anything to the contrary contained herein and subject to the provisions of the Statutes,
a notice to a Shareholder may be served, as general notice to all Shareholders, in
accordance with applicable rules and regulations of any stock exchange upon which the
Companys shares are listed.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
cases where it is necessary to give advance notice of a particular number of days or
notice which shall remain in effect for a particular period, the day the notice was sent
shall be excluded and the scheduled day of the meeting or the last date of the period
shall be included in the count.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Subject
to the Statutes, the Company shall not be required to send notices to any Shareholder who
is not registered in the Register or has not provided the Company with accurate and
sufficient mailing details.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|81. | Any
notice to be given to the Shareholders shall be given, with respect to joint
                    shareholders, to the person whose name appears first in the Register
as the                     holder of the said share, and any notice so given shall be
sufficient notice for                     all holders of the said share.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|82. | Any
notice or other document served upon or sent to any Shareholder in
                    accordance with these Articles shall, notwithstanding that he be then
deceased                     or bankrupt, and whether the Company received notice of his
death or bankruptcy                     or not, be deemed to be duly served or sent in
respect of any shares held by him                     (either alone or jointly with
others) until some other person is registered in                     his stead as the
holder or joint holder of such shares, and such service or                     sending
shall be a sufficient service or sending on or to his heirs, executors,
                    administrators or assigns and all other persons (if any) interested
in such                     share.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|83. | The
accidental omission to give notice to any Shareholder or the non receipt of
                    any such notice, shall not cancel or annul any action made in
reliance on the                     notice.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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Dated this 23 day of July, 2004, with
an effective date as of the closing of the initial public offering of the Companys
shares dated ______________, 2004

___________________________________________

Dr. Shimon Eckhouse,

Chairman of the General
Meeting

Page 16 of 16

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