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Exhibit 1.2

This is an English translation from the original Hebrew version. In case of any
discrepancy, the binding version is the Hebrew original.

ARTICLES
OF
HADERA PAPER LTD.

# INTRODUCTION

|1. | 1.1 | In these Articles, unless the context otherwise requires 
|-- | --- | ----------------------------------------------------------

| |                                               |   |                                                                                                                                          
| | --------------------------------------------- | - | -----------------------------------------------------------------------------------------------------------------------------------------
|
|
|
|
| | "Person" or "Persons"                         |  | Including a corporation;                                                                                                                 
| |                                              
| | "In writing"                                  |  | In handwriting, print, type, photo, telex, facsimile or in any other manner that can be read;                                            
| |                                              
| | "Shareholder"                                 |  | Whoever is a shareholder on the determining date as per section 182 of The Companies Law, if there is a determining date for such matter;
| |                                              
| | "Registered Shareholder"                      |  | The shareholder registered in the Shareholders Register of the Company;                                                                  
| |                                              
| | "Non-Registered Shareholder"                  |  | A shareholder within the meaning of section 177(1) of the Law;                                                                           
| |                                              
| | "The Company"                                 |  | Hadera Paper Ltd.                                                                                                                        
| |                                              
| | "The Law" or "The Companies Law"              |  | The Companies Law 5759-1999, as from time to time in force, and also the Regulations issued thereunder;                                  
| |                                              
| | "The Secretary"                               |  | Whoever may be appointed as secretary of the Company;                                                                                    
| |                                              
| | "The Register" or "The Shareholders Register" |  | The register of shareholders of the Company which must be maintained by law;                                                             
| |                                              
| | "The Office" or "The Registered Office"       |  | The office of the Company, the address of which is from time to time registered with the Registrar;                                      
| |                                              
| | "The Ordinance" or "The Companies Ordinance"  |  | The Companies Ordinance (New Version), 5743-1983, as from time to time in force, and also the Regulations issued thereunder;             
| |                                               |   |                                                                                                                                          

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| |                                    |   |                                                                                                                                                                                                                                 
| | ---------------------------------- | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
|
|
|
| | "Special Majority"                 |  | A majority of sixty percent of all votes of the shareholders present at a general meeting or class meeting, as the case may be, who are entitled to vote and who voted at such meeting, without taking abstentions into account;
| |                                   
| | "Ordinary Majority"                |  | A simple majority of all votes of the shareholders present at a general meeting or class meeting, as the case may be, who are entitled to vote and who voted at such meeting, without taking abstentions into account;          
| |                                   
| | "Year" or "Month"                  |  | In accordance with the Gregorian calendar;                                                                                                                                                                                      
| |                                   
| | "Corporation"                      |  | A company, partnership, cooperative society, association and any other body of persons whether incorporated or unincorporated;                                                                                                  
| |                                   
| | "These Articles" or "The Articles" |  | The Articles of Association in the version of this document, as may from time to time be amended;                                                                                                                               
| |                                    |   |                                                                                                                                                                                                                                 

| | 1.2 | Any
expression in these Articles which is not defined in these Articles, shall have the
meaning designated to it in the Companies Law, unless this may involve any contradiction
to the subject written or its content; words in the singular  shall mean also the
plural, and vice versa, words in masculine gender  shall mean also feminine gender.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 1.3 | The
headings in these Articles are meant for the purpose of convenience only and shall not be
used for the interpretation of these Articles.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------

| | 1.4 | In
any place in these Articles which provides that the provisions thereof shall apply
subject to the provisions of the Ordinance and/or subject to the provisions of the
Companies Law and/or subject to the provisions of any law, the intention is to provisions
of the Ordinance and/or provisions of the Companies Law and/or provisions of any law,
which are not elective, unless the context otherwise demands.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 1.5 | Provisions
which in accordance with the Companies Law are elective shall apply to the Company, to
the extent that it is not otherwise provided in these Articles and to the extent that
there is no contradiction between them and between the provisions of these Articles.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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Name of the Company

|2. | The
name of the Company is as follows:
|-- | --------------------------------------

| |             | 
| | ----------- | 
| | In
Hebrew  | 

| | In
English  | Hadera Paper Ltd.
| | ------------ | -----------------

Limitation of
Liability

|3. | The
liability of the shareholders is limited to the payment of par value of the
               shares unless the provisions of section 304 of The Law exist.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

Objects of the
Company

|4. | The
objects of the Company are as specified in the Memorandum of Association of           the
Company.
|-- | ------------------------------------------------------------------------------------------------------

Business

|5. | The
Company may, at any time, engage in any branch or kind of business in which
               it is, expressly or by implication, authorized to engage in accordance
with                Article 4 above. The Company may also cease to engage in such
businesses,                whether or not it has commenced to engage in such branch or
kind of business.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Donations

|6. | The
Company may donate reasonable amounts for deserving causes, even though the
               donation is not within the framework of the business considerations of the
               Company.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Registered Office

|7. | The
registered office of the Company shall be the address determined by the
               Board, as may from time to time be changed.
|-- | --------------------------------------------------------------------------------------------------------------------------------------

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The Articles

|8. | The
Company may alter these Articles by resolution carried at a General Meeting
               by a majority of sixty percent of all the votes of the shareholders
present at                the General Meeting who are entitled to vote and who voted at
the meeting,                without taking abstention votes into account.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9. | A
resolution carried at a General Meeting by the majority required for
               alteration of the Articles, as aforesaid in Article 8 above, which alters
any                provision of the provisions of these Articles, shall be deemed to
constitute a                resolution for the alteration of these Articles even though
the resolution does                not expressly state alteration of Articles.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10. | Subject
to the provisions of the Companies Law, alterations of these Articles
               shall be valid as from the date of adoption of the resolution by the
Company or                from such later date as may be determined in the resolution.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Registered Share
Capital

|11. | The
registered share capital of the Company is NIS 200,000 divided into
               20,000,000 Ordinary Shares of par value NIS 0.01 each (hereinafter                The
Ordinary Shares). The Company may alter the registered                share
capital in accordance with the provisions of the Companies Law and of
               these Articles.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The Shares

|12. | Every
Ordinary Share in the capital of the Company is of equal rights, for all
               intents and purposes, to every other Ordinary Share, including the right
to                dividend, to bonus shares and to participation in the surplus assets of
the                company upon liquidation, proportionately to the par value of each
share,                without taking into consideration any premium paid in respect
thereof, all the                aforesaid subject to the provisions of these Articles.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13. | Each
of the Ordinary Shares entitles the holder thereof to participate at and to
               one vote at General Meetings of the Company.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------

|14. | 14.1 | 14.1.1 | A shareholder is any person who is registered as a shareholder in
               the Shareholders Register , and any person to whose credit a share is
registered                with a member of the Stock Exchange and such share is included
among the shares                registered in the Shareholders Register of the Company in
the name of a Nominee                Company.
|--- | ---- | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 14.1.2 | A
shareholder who is a trustee shall be registered in the Shareholders Register with a note
as to his trusteeship, and for the purpose of the Companies Law he shall be deemed to be
a shareholder. Without derogating from the aforesaid, the Company shall recognize a
trustee, as aforesaid, as a shareholder, for all intents and purposes, and shall not
recognize any other person whomsoever, including the beneficiary, as the owner of any
right whatsoever to the share.
| | ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 14.2 | Without
derogating from the aforesaid, and subject to the provisions of these Articles, apart
from shareholders of the Company, as aforesaid in Article 14.1 above, no person will be
recognized by the Company as the owner of any right whatsoever to a share and the Company
will not be bound and will not recognize any beneficial right in accordance with the laws
of equity or trustee relations or a future or partial right to any share or any
beneficial right in a fraction of a share or any other right in respect of a share, but
only the right of the shareholder as aforesaid in Article 14.1 above to the share in its
entirety, all the aforesaid except if a court of competent jurisdiction may otherwise
direct.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Share Certificates

|15. | The
certificates evidencing the right of ownership to shares shall bear the
               stamp of the Company or its printed name and the signatures of one
Director                together with the CEO of the Company or together with the
secretary of the                Company or the signatures of any two persons appointed by
the Board for such                purpose.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Board may resolve that a signature or signatures as aforesaid may be effected by any
mechanical means, as may be determined by the Board.
| | ---------------------------------------------------------------------------------------------------------------------------------------------

|16. | Except
in the event that the conditions of the issuance of shares otherwise           provide:
|--- | ----------------------------------------------------------------------------------------------

| | 16.1 | Every
registered shareholder is, at his request, entitled to receive from the Company within a
period of two months following the allotment or the registration of transfer, as the case
may be, one certificate evidencing his ownership of the shares registered in his name,
or, with the consent of the Company, several such certificates.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 16.2 | A
Nominee Company is, at its request, entitled to receive from the Company within a period
of two months following the allotment or the registration of transfer, as the case may
be, one certificate evidencing the number of shares and class of shares registered in its
name in the Shareholders Register.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17. | Subject
to the provisions of the Companies Law, there shall be detailed in every
               certificate the number of shares in respect of which the certificate was
issued,                their serial numbers and par value.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|18. | A
certificate which relates to a share registered in the name of two or more
               persons, shall be delivered to the person whose name appears first in the
               Shareholders Register in respect of such share, unless all the registered
               shareholders of such share shall direct the Company, in writing, to
deliver the                certificate to another of the registered shareholders.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|19. | If
a share certificate is destroyed, spoiled, lost or damaged, the Board may
               order the cancellation thereof and the issue of a new certificate in place
               thereof, provided that the share certificate is delivered to the Company
and                destroyed by it, or that it is proved to the satisfaction of the Board
that the                certificate has been lost or destroyed and the Company has
received securities                to the satisfaction of the Board against any possible
damage. A reasonable sum                as may be determined by the Board, from time to
time, shall be paid in respect                of every certificate issued pursuant to
this Article.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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Payments for Shares

|20. | All
shares in the issued capital of the Company shall be fully paid up.
|--- | -----------------------------------------------------------------------

Forfeit of Shares

|21. | Without
derogating from the aforesaid in Article 20 above, the Board may forfeit                a
share allotted by the Company and may sell the same, if the consideration
               which the shareholder undertook to pay to the Company, in whole or in
part, has                not been paid to the Company, and the provisions of the
Companies Law shall                apply to such matter.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Transfer and
transmission of Shares

|22. | Every
transfer of shares registered in the Shareholders Register in the name of
               a registered shareholder, including by or to the Nominee Company, shall be
made                in writing, provided that the Deed of Transfer shall be signed in
handwriting                only by the transferor and by the transferee, in person or by
their attorneys                and also by witnesses to their signature, and shall be
delivered to the                registered office of the Company or to such other place
as may be fixed by the                Board for such purpose. Subject to the provisions
of the Companies Law, a                transfer of shares shall not be registered in the
Shareholders Register except                after a Deed of Transfer shall have been
delivered to the Company, as aforesaid;                the transferor shall continue to
be deemed to be the shareholder of the shares                transferred until the
registration of the transferee in the Shareholders                Register as shareholder
of the shares transferred.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|23. | A
Deed of Transfer of a share shall be made in writing, in the form usual in
               Israel or in such other form as may be approved by the Board. If the
transferor                or the transferee is a corporation, a certificate of an
advocate or of an                accountant or of any other person acceptable by the
Board, shall be given with                regard to the authority of the signatories on
behalf of the corporation to make                or receive the transfer, as the case may
be.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|24. | The
Company may close the Shareholders Register for a period fixed by the Board
               provided that such period shall not exceed thirty days in any year. When
the                Register is closed, no transfer of shares shall be registered in the
Register.                Without derogating from the aforesaid, the Board may fix a
determining date for                the purpose of entitlement to vote at a General
Meeting, or to receive a                dividend or any rights allotment or for any other
legal purpose.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|25. | Subject
to the provisions of these Articles or to the terms of the issue of                shares
of any class, shares may be transferred without necessity for approval by
               the Board.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|26. | Every
Deed of Transfer shall be lodged for registration at the office or any
               other place as may be fixed by the Board, together with the share
certificates                of the shares to be transferred, if such a certificate has
been issued, and                together with any other proof required by the Board as to
the proprietary right                of the transferrer or his right to transfer the
shares. Deeds of Transfer which                are registered shall remain with the
Company but any Deed of Transfer which the                Board refuses to transfer,
shall be returned to the person who lodged the same,                at his request.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|27. | If
the Board refuses to approve the transfer of shares, it shall notify the
               transferrer of same not later than one month from the date of receipt of
the                Deed of Transfer.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|28. | The
Company shall be entitled to charge a fee for registration of transfer in an
               amount to be fixed by the Board from time to time and which is reasonable
in the                circumstances of the matter.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|29. | 29.1 | Subject to the provisions of the Companies Law and to the provisions of
               these Articles, if there shall be proved to the Company to the
satisfaction of                the Board in such manner as may be determined by it, the
existence of the legal                requirements for the transmission of shares
registered in the name of a                registered shareholder, the Company shall
recognize the assignee alone as the                owner of the right to the said shares.
|--- | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 29.2 | Notwithstanding
the aforesaid, in the event of the death of one or more of the shareholders in whose
joint names shares are registered in the Shareholders Register, the Company shall
recognize only the surviving shareholders as owners of the proprietary right to such
shares.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|30. | 30.1 | Subject to the provisions of these Articles, the Company shall change the
               registration of the ownership of shares in the Shareholders Register in
the                event that there shall be lodged with the Company a court order for
the                amendment of the Register or if there shall be proved to the Company,
to the                satisfaction of the Board in the manner fixed by the Board, the
existence of the                legal requirements for the transmission of shares, and
the Company shall not                recognize any right of any person to shares unless
his right shall first be                proved, as aforesaid.
|--- | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 30.2 | Without
derogating from the aforesaid, the Board may refuse to effect the registration or delay
the same, as it would have been entitled to do had the registered shareholder himself
transferred the share, prior to the transmission of the right.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|31. | Subject
to the provisions of the Companies Law and to the provisions of these           Articles,
a person who becomes entitled to a share as aforesaid in Article 29           above,
shall be entitled to transfer the shares in the same way that the           registered
owner was entitled to do himself, prior to the transmission of the           right.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|32. | The
Company may destroy the Deeds of Transfer of shares on the expiration of           seven
years from registration in the Register, the Company may also destroy           share
certificates which have been cancelled on the expiration of seven years           from
their cancellation, and there shall be a prima facie presumption that the           Deeds
of Transfer and certificates destroyed were fully valid and that the           transfers,
cancellations and registrations, as the case may be, were correctly           effected.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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Alteration of Capital

|33. | The
Company may, by resolution carried at a General Meeting by a special           majority,
increase the registered share capital of the Company, by classes of           shares, as
it may determine.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|34. | Subject
to the provisions of the Companies Law, the Company may, by resolution           carried
at a General Meeting by an ordinary majority:
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------

| | 34.1 | To
 consolidate  all or part of its shares and to divide them into shares of a greater par
value than                   the par value of the existing shares;
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 34.2 | To
split all or part of its shares,  by way of subdivision,  into shares of lesser par value
than the                   par value of the existing shares;
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

| | 34.3 | To
decrease the capital of the Company and of any reserve fund from redemption of capital.
| | ---- | ------------------------------------------------------------------------------------------

| | For
the execution of any resolution as aforesaid, the Board may, at its discretion, resolve
any difficulty which may arise in connection therewith.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------

|35. | Without derogating from the generality of the authority of the Board, as
          aforesaid, if as a result of the consolidation or split, as aforesaid, fractions
          of a share shall stand to the credit of the shareholders, the Board is
          authorized at its discretion, to act as follows:
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 35.1 | To
determine that fractions of shares which do not entitle their owners to a whole share,
shall be sold by the Company and that the consideration for the sale be paid to the
beneficiaries, on the terms and in the manner which may be determined.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 35.2 | To
allot to every shareholder whom the consolidation and/or split leaves with a fraction of
a share, shares of the class which existed in the Companys capital prior to the
consolidation and/or split, in such quantity which, when consolidated with the fraction,
will constitute one whole share, and such allotment shall be deemed to be valid
immediately prior to the consolidation or split, as the case may be.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 35.3 | To
determine the manner in which the amounts to be paid for shares allotted as aforesaid in
Article 35.2 above, shall be paid up, including on account of bonus shares.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 35.4 | To
determine that the owners of fractions of shares shall not be entitled to receive a whole
share in respect of a share fraction.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------

| | 35.5 | To
determine that shareholders shall not be entitled to receive a whole share in respect of
a fraction of a whole share of a determined par value or less than same, and that they
shall be entitled to receive a whole share in respect of a fraction of a whole share the
par value of which is greater than such determined par value.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

8

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|36. | The
Company may, by resolution carried at a General Meeting, by a special           majority,
annul registered share capital which has not yet been issued, provided           that the
Company has no undertaking, including a provisional undertaking, to           allot such
shares.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Modification of
Rights

|37. | At
any time during which the share capital is divided into different classes,           the
Company may by resolution carried at a General Meeting, by a special           majority,
except if the terms of the issuance of the shares of such class           otherwise
provide, annul, convert, expand, supplement, restrict, amend or           otherwise
modify the rights of a class of shares of the Company, provided that           the
consent, in writing, of all the shareholders of such class thereto shall be
          received or that the resolution shall have been approved by a General Meeting
of           the shareholders of such class by special majority, or in the event that it
was           otherwise provided in the terms of the issuance of a particular class of
the           shares of the Company, as may have been provided in the terms of issuance
of           such class.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|38. | The
provisions of these Articles concerning General Meetings shall apply,           subject
to the necessary changes, to any class meeting provided that the quorum           at the
class meeting shall be the presence, in person or by proxy, at the           opening of
the meeting of at least two shareholders who own at least twenty five           percent
of the number of the issued shares of such class. However if there is no           such
quorum, the meeting shall be adjourned to another date and at the adjourned
          meeting a quorum shall be constituted by any number of participants regardless
          of the number of shares held by them.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|39. | The
rights conferred upon the shareholders or owners of a class of shares,           whether
issued with ordinary rights or with preference rights or with other           special
rights, shall not be deemed to have been converted, restricted,           prejudiced or
altered in any other manner by the creation or issuance of           additional shares of
any class, whether of the same degree or in a degree           different or preferable to
them, nor shall they be deemed to have been           converted, restricted, prejudiced
or altered in any other manner by a change of           the rights linked to any other
class of shares, all the aforesaid unless           otherwise expressly provided in the
terms of the issuance of such shares.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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Issuance of Shares
and Other Securities

|40. | The
Board may issue shares and other securities which are convertible or           realizable
for shares, up to the extent of the registered share capital of the           Company;
for this purpose convertible securities which may be converted or           realized for
shares shall be deemed to have been converted or realized at the           time of issue.
Without derogation from the generality of the aforesaid, the           Board may issue
shares and other securities, as aforesaid, to grant optional           rights for the
purchase thereof including options or to confer them in any other           manner, all
the aforesaid to such persons as may be determined by the Board and           at such
times, for such prices and upon such conditions as may be determined by           the
Board, and also to determine any other provision in connection therewith,
          including provisions as to the manner of the distribution of the shares and the
          securities issued by the Company, between the purchasers thereof, including in
          the case of over subscription, all the aforesaid at the discretion of the
Board.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|41. | Without
derogating from the generality of the foregoing, and subject to the           provisions
of the Companies Law and of these Articles, the Board may determine,           at its
discretion, that the consideration for shares shall be paid in cash or in           kind,
including in securities or in any other manner, or that the shares shall           be
allotted as bonus shares or be allotted for a consideration equal to or           greater
than their par value, either in units or in series, all the aforesaid on           the
terms and at the times as may be determined by the Board at its discretion.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|42. | In
a resolution for the increase of the registered share capital of the Company,
          the General Meeting may determine that the new shares included in the amount by
          which the registered share capital was increased as aforesaid (hereinafter
           the New Shares), or any part of them, shall first be
offered,           at par value or at a premium, to all the existing shareholders in
proportion to           the par value of their shares in the Company or may determine
other provisions           with regard to the issuance and allotment of the new shares.
However, in the           absence of such a determination by the General Meeting in the
resolution to           increase the registered share capital of the Company, the Board
may offer such           shares as aforesaid in Article 40 above.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|43. | The
Board may resolve to pay commissions or underwriting fees to any person, at           the
time of subscription or a subscription agreement or the procurement of
          subscriptions or pledge of subscriptions for shares or debentures or other
          securities of the Company. In the event of any issuance of securities of the
          Company, the Board may also resolve to pay agency commissions, the aforesaid in
          cash, in shares of the Company or in other securities issued by the Company, or
          in any other manner, or partly in one manner and partly in another manner, all
          the aforesaid subject to the provisions of law.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Redeemable Securities

|44. | Subject
to the provisions of the Companies Law the Company may issue securities           which
may be redeemed on such terms and in such manner as may be determined by           the
Board at its discretion.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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Registers

|45. | 45.1 | The Company shall maintain a Shareholders Register and shall, shortly after
               the issuance of any shares of the Company, register therein the names of
the                shareholders and the other particulars required by the Companies Law.
Subject to                the provisions of the Law, upon registration in the Register
the registered                shareholder shall be deemed to be the owner of the shares
registered in his name                even if share certificates have not been issued in
respect of such shares.
|--- | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 45.2 | The
Company shall maintain a Register of Material Shareholders, as required by the Companies
Law.
| | ---- | -------------------------------------------------------------------------------------------------

|46. | The
Company may maintain an additional Shareholders Register outside of Israel           on
the terms provided for such purpose by the Companies Law.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------

|47. | The
Company shall maintain a Register of Debenture Holders and Convertible           Security
Holders and all the provisions of these Articles relating to shares           shall apply
with regard to such Convertible Securities, as regards registration           in the
Register, issue of certificates, exchange of certificates, transfer and
          transmission, subject to such changes as the context may require, all the
          aforesaid subject to the terms of the issue of the securities.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

General Meetings

|48. | Resolutions
of the Company in the following matters shall be adopted at a           General Meeting:
|--- | ----------------------------------------------------------------------------------------------------

| | 48.1 | Alterations
of the Articles or Memorandum of the Company;
| | ---- | ---------------------------------------------------------

| | 48.2 | Exercise
of the authorities of the Board of Directors by General Meeting in the event that the
Board is not able to exercise its authorities and the exercise of any authority is vital
for the proper management of the Company, as provided in section 52(a) of the Companies
Law;
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 48.3 | Appointment
and termination of employment of auditors;
| | ---- | ------------------------------------------------------

| | 48.4 | Appointment
and dismissal of Directors;
| | ---- | ---------------------------------------

| | 48.5 | Approval
of actions and transactions which are subject to approval at a General Meeting in
accordance with the provisions of sections 255 and 268 to 275 of the Companies Law;
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 48.6 | Increase
of the registered share capital and the decrease thereof in accordance with the
provisions of sections 286 and 287 of the Companies Law as well as alterations in capital
as provided for in Article 34 above;
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 48.7 | Merger
in accordance with section 320(a) of the Companies Law;
| | ---- | --------------------------------------------------------------

| | 48.8 | Any
matter which in accordance with these Articles is required to be adopted by resolution of
a General Meeting.
| | ---- | ----------------------------------------------------------------------------------------------------------------

11

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|49. | The
Company shall hold an Annual General Meeting each year not later than           fifteen
months after the previous Annual Meeting, at such time and place as may           be
determined by the Board.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|50. | The
Agenda of the Annual General Meeting shall include the following items:
|--- | ---------------------------------------------------------------------------

| | 50.1 | Discussion
of the Financial Statements and Directors Report regarding the Companys
business which are presented to the General Meeting;
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------

| | 50.2 | Appointment
of Directors and determination of their remuneration;
| | ---- | -----------------------------------------------------------------

| | 50.3 | Appointment
of auditors;
| | ---- | ------------------------

| | 50.4 | Report
of the Board as to the auditor's fee for auditing and additional services, if any;
| | ---- | -----------------------------------------------------------------------------------------

| | 50.5 | In
addition to the aforesaid, there may be included on the agenda of the Annual Meeting any
other matter determined in accordance with Article 53 hereafter.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

| | A
General Meeting as aforesaid is referred to as an Annual Meeting and any
other General Meeting is referred to as a Special Meeting.
| | -----------------------------------------------------------------------------------------------------------------------------------------

|51. | The
Board of Directors of the Company shall convene a Special Meeting as may be
          decided by the Board, and shall also convene a Special Meeting at the demand of
          any one of the following:
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 51.1 | Any
two Directors or one quarter of the officiating Directors.
| | ---- | --------------------------------------------------------------

| | 51.2 | One
or more shareholders who hold at least five percent of the issued capital and one percent
of the voting rights, or one or more shareholders who hold at least five percent of the
voting rights.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | If
the Board receives a demand for the convocation of a Special Meeting as aforesaid, the
Board shall within twenty one days of receipt of the demand convene the meeting for a
date fixed in the notice as to the Special Meeting in accordance with Article 55.1
hereafter, provided that the date for convocation shall not be later than thirty five
days from the date of publication of the notice, all the aforesaid subject to the
provisions of the Companies Law.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|52. | In
the event that the Board does not convene a Special Meeting demanded in
               accordance with Article 51 above, the persons making the demand, and in
the case                of shareholders, such part of them as hold more than one half of
their voting                rights, may themselves convene the meeting provided that it
shall not be held                more than three months after the date that the demand
was lodged as aforesaid,                and the meeting shall be convened, to the extent
possible, in the same manner as                the convocation of meetings by the Board.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

12

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|53. | 53.1 | The agenda at a General Meeting shall be fixed by the Board and shall
               include also items in respect of which a demand for the convocation of a
Special                Meeting has been made in accordance with Article 51 above and any
matter                requested in accordance with Article 53.2 hereafter.
|--- | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 53.2 | One
or more shareholders who hold at least one percent of the voting rights at the General
Meeting, may request the Board to include any matter on the agenda of a meeting to be
held provided that such matter is appropriate for deliberation at a General Meeting.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 53.3 | A
request as aforesaid in Article 53.2 above shall be lodged with the Company at least
seven days prior to the giving of notice of the convocation of the General Meeting, and
there shall be attached thereto a draft of the resolution proposed by the shareholder.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|54. | 54.1 | A notice of a General Meeting shall be published in at least two widely
               distributed daily newspapers published in Hebrew; The notice shall be
published                at least fourteen days prior to the convocation of the meeting.
|--- | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 54.2 | Apart
from the notice as to the General Meeting as in Article 54.1 above, the Company shall not
give any notice as to the General Meeting, either to the registered shareholders or to
shareholders who are not registered, subject to provisions of the law and/or any other
applicable law.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|55. | 55.1 | The notice as to a General Meeting shall detail the place, the day and the
               hour at which the meeting will be held and shall include the agenda as
well as a                summary of the proposed resolutions and any other details
required by law.
|--- | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 55.2 | In
the resolution of the Board to convene a meeting, the Board may, at its discretion and
subject to the provisions of the Law, fix the manner in which the items on the agenda
will be detailed and notified to the shareholders entitled to participate at the meeting.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 55.3 | Without
derogating from the authority of the Board as aforesaid in this Article 55 and without
derogating from the generality of the provisions of these Articles relating to delegation
of the authority of the Board, the Board may delegate its authority as aforesaid in this
Article 55, to a Committee of the Board and/or to an officer of the company, either for
the purpose of a specific General Meeting or for a period.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|56. | A
defect made bona fide in the convocation of a General Meeting or the           management
of the meeting including a fault resulting from the non-performance           of a
provision or condition fixed by law or by these Articles, including as to           the
manner of the convocation or management of the General Meeting, shall not
          invalidate any resolution carried at the General Meeting and shall not
prejudice           the proceedings thereof, subject to the provisions of any law.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

13

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Proceedings at
General Meetings

|57. | No
business shall be transacted at any General Meeting unless a quorum is           present
at the time the meeting proceeds to business. A quorum shall be           constituted
when two shareholders, holding collectively at least twenty five           percent of the
voting rights, are present in person or by proxy within half an           hour from the
time appointed for commencement of the meeting, unless otherwise           determined in
these Articles.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|58. | If
a quorum is not present within half an hour, the meeting shall stand           adjourned
for seven days, to the same day of the week at the same time and           place, without
need for notification to the shareholders, or to such other day,           time and place
as the Board may by notice to the shareholders appoint.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|59. | At
an adjourned meeting a quorum shall be constituted when two shareholders,
          holding collectively at least twenty five percent of the voting rights, are
          present in person or by proxy within half an hour from the time appointed for
          commencement of the adjourned meeting. If a quorum is not present as aforesaid,
          at the adjourned meeting, the meeting shall be dissolved.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|60. | The
Chairman of the Board or in his absence, any Director appointed for such
          purpose by the Board, shall take the chair at every General Meeting of the
          Company. If there shall be no Chairman as aforesaid or if at any particular
          meeting, no such person is present within fifteen minutes from the time
          appointed for commencement of the meeting, or if they shall be unwilling to act
          as Chairman of the meeting, the Directors present may by majority vote elect as
          Chairman one of the Directors or officers of the Company present at the
meeting,           and in default of their so doing, the shareholders present in person
or by proxy           may elect as Chairman one of the Directors or officers of the
Company present at           the meeting. If no Directors or officers are present or if
all of the Directors           or officers shall be unwilling to act as Chairman, one of
the shareholders or           the proxy of a shareholder shall be elected to act as
Chairman.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|61. | The
Company shall maintain Minutes of the proceedings at the General Meeting           which
shall include the following details:
|--- | ---------------------------------------------------------------------------------------------------------------------------------

| | 61.1 | The
names of the  shareholders  participating at the General Meeting and the number of shares
held by                   them;
| | ---- | -----------------------------------------------------------------------------------------------------------------------------

| | 61.2 | The
matters transacted at the General Meeting and the resolutions carried.
| | ---- | --------------------------------------------------------------------------

|62. | Minutes
signed by the Chairman of the General Meting shall constitute prima           facie
evidence as to the contents thereof.
|--- | --------------------------------------------------------------------------------------------------------------------------------

14

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Voting and Carrying
of Resolutions at General Meetings

|63. | A
shareholder who wishes to vote at a General Meeting shall prove to the Company
          his ownership of his share in the manner required by the Companies Law. Without
          derogating from the aforesaid, the Board may issue directives and procedures
          relating to the proof of ownership of shares of the Company.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|64. | A
shareholder is entitled to vote at a General Meeting or Class Meeting, in
          person or by proxy, in accordance with the provisions of these Articles and
          subject to the provisions of the Companies Law. A voting proxy need not be a
          shareholder of the Company.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|65. | Subject
to the provisions of any law, in the event of joint holders, each of           them, in
person or by proxy, is entitled to vote at any meeting in respect of           the
jointly owned shares as though he were the sole owner. In the event that           more
than one of the joint owners is present at the meeting, in person or by           proxy,
the shareholder entitled to vote will be the one whose name appears first           in
the Register or in the Ownership Certificate issued by a member of the Stock
          Exchange (hereinafter Ownership Certificate), or in such other
          document determined by the Board for such purpose, as the case may be. Several
          executors or administrators of a deceased shareholder shall for the purpose of
          this Article be deemed joint owners of the shares.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|66. | Any
person entitled to shares in accordance with Article 29 above, may vote at           any
General Meeting in respect thereof in the same manner as if he were the
          registered holder of such shares, provided that at least forty eight hours
          before the time for the meeting or the adjourned meeting, as the case may be,
at           which he proposes to vote, he shall satisfy the Board of his right to vote
such           shares unless the Company shall have previously recognized his right to
vote the           shares at such meeting.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|67. | The
instrument appointing a proxy (hereinafter The Proxy           Appointment)
shall be in writing signed by the principal, or if the           principal is a
corporation the proxy appointment shall be in writing and signed           by authorized
signatories of the corporation; The Board is entitled to demand           that prior to
the holding of the meeting, there shall be produced to the Company           a
confirmation in writing of the authority of signatories to bind the           corporation
to the satisfaction of the Board. The Board may also issue           provisions and
procedures relating to such matter.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
proxy appointment or an office copy to the satisfaction of the Board shall be deposited at
the registered office or at such other place or places, in or outside of Israel,  as
may from time to time be determined by the Board, either generally or in respect of a
specific meeting  at least forty eight hours prior to the commencement of the
meeting or the adjourned meeting, as the case may be, at which the proxy proposes to vote
on the strength of such proxy appointment. Notwithstanding the aforesaid, the Chairman of
the meeting may, at his discretion, accept such proxy appointment after such time if he so
deems fit at his discretion. If the proxy appointment is not received as aforesaid in this
Article, it shall not be valid at such meeting.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|68. | A
voting proxy is entitled to participate in the proceedings at the General
          Meeting and to be elected as chairman of the meeting in the same manner as the
          appointing shareholder, unless the proxy appointment otherwise provides.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

15

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| | 68.1 | The
proxy appointment shall be in form usual in Israel or any other form which may be
approved by the Board.
| | ---- | ------------------------------------------------------------------------------------------------------------

| | 68.2 | The
proxy appointment shall state the class and number of shares in respect of which it is
given. If the proxy appointment does not state the number of shares in respect of which
it is given or states a number of shares which exceeds the number registered in the name
of the shareholder or stated in the Ownership Certificate, as the case may be, the proxy
instrument shall be deemed to have been given in respect of all the shares of the
shareholder.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 68.3 | If
the proxy appointment is given in respect of a number of shares which is less than the
number of shares registered in the name of the shareholder or stated in the Ownership
Certificate, as the case may be, the shareholder shall be deemed not to have participated
in the voting in respect of the excess shares and the proxy appointment shall be valid in
respect of the number of shares stated therein.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|69. | Without
derogating from the provisions of these Articles relating to the           appointment of
a proxy for voting, a shareholder who holds more than one share           is entitled to
appoint more than one proxy, subject to the following provisions:
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 69.1 | Each
proxy appointment shall state the class and number of shares in respect of which it is
given.
| | ---- | --------------------------------------------------------------------------------------------------

| | 69.2 | If
the total number of shares of any class stated in proxy appointments given by such
shareholder exceeds the number of shares registered in the name of the shareholder or
stated in the Ownership Certificate, as the case may be, all the proxy appointments given
by such shareholder shall be invalid.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|70. | A
shareholder or his voting proxy may vote in respect of part only of the shares
          held by him or in respect of which he acts as proxy, and he may vote one way in
          respect of some of the shares and another way in respect of some thereof.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|71. | A
vote given by virtue of a proxy appointment shall be valid notwithstanding any
          defect in the proxy appointment and also in case of the decease of the
principal           or declaration of his legal incapacity or revocation of the proxy
appointment or           transfer of the shares in respect of which the vote is given
prior to the           meeting, unless a notice in writing has been received at the
office prior to the           meeting as to such defect, death, incapacity, revocation or
transfer, as the           case may be. Notwithstanding the aforesaid the chairman of the
meeting may, at           his discretion accept such a notice also during the meeting if
he shall so deem           fit at his discretion.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|72. | A
proxy appointment shall be valid also in respect of an adjourned meeting of           the
meeting to which the proxy appointment relates unless otherwise provided in           the
proxy appointment.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|73. | Each
Ordinary Share entitles the holder thereof to participate at a General           Meeting
of the Company and to one vote at a poll.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------

16

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|74. | Any
resolution standing to the vote of a General Meeting shall be decided by a           poll
of the votes of the shareholders voting; A poll shall be taken in such           manner
as the chairman of the meeting may direct. In case of any dispute as to           the
acceptance or rejection of any vote on a poll, the chairman of the meeting
          shall determine the matter and his bona fide decision shall be final and
          binding.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|75. | A
declaration by the chairman that a resolution has been carried or rejected,
          whether unanimously or by a particular majority, and an entry to that effect in
          the minutes of the meeting, shall constitute prima facie evidence of such fact,
          and there shall be no necessity to prove the number of votes (or the relative
          proportion thereof) cast in favor of, or against the proposed resolution.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|76. | Subject
to the provisions of the Companies Law or the provisions of these           Articles
requiring any other majority, resolutions of a General Meeting shall be           adopted
by a simple majority. In the event of an equality of votes for and           against, the
chairman of the meeting shall not have a second or casting vote.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|77. | The
chairman of a General Meeting may, with the consent of a meeting at which a
          quorum is present, and shall if so directed by the meeting, adjourn the meeting
          or adjourn the proceedings with regard to any particular matter on the agenda,
          to another time and place as may be decided. No business shall be transacted at
          the adjourned meeting other than business which was on the agenda but
unfinished           at the meeting from which the adjournment took place. It shall not
be necessary           to give notice of the adjourned meeting unless the adjournment
exceeds twenty           one days, in which case notice of the adjourned meeting shall be
given as           provided for in Articles 54 and 55.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The Board of
Directors

|78. | The
number of Directors shall not be less than five and shall not exceed
               fifteen, including the External Directors.
|--- | ----------------------------------------------------------------------------------------------------------------------------------

|79. | The
Directors shall be appointed at the Annual Meeting and, with the exception
               of the External Directors, shall continue in office until the termination
of the                first Annual Meeting following their appointment. Notwithstanding
the aforesaid,                if no Directors were appointed at the Annual Meeting, the
Directors appointed at                the previous Annual Meeting shall continue in
office. Directors whose period of                office is expiring are eligible for
re-appointment.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|80. | No
person other than a person who acted as a Director up to the Annual Meeting,
               shall be appointed as a Director at the Annual Meeting, unless recommended
for                appointment by the Board, or unless a shareholder of the Company who
wishes to                propose a candidate shall have lodged at the Office, not later
than seven days                after the publication of the notice of the meeting, a
document in writing signed                by the shareholder notifying his intention to
propose such candidate for                appointment as a Director, to which document
there shall be attached the consent                of the candidate to act as a Director.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|81. | The
Board may from time to time appoint an additional Director or Directors,
               whether in order to fill the office of a Director which has become vacant
for                any reason whatsoever or as an additional Director or Directors,
provided that                the total number of Directors shall not exceed the maximum
number fixed in                Article 78 above. The office of a Director appointed as
aforesaid shall                terminate at the end of the Annual Meeting held following
his appointment and he                shall be eligible for re-appointment.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

17

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|82. | The
Company may, at an Special Meeting, appoint an additional Director or
               Directors, whether in order to fill the office of a Director which has
become                vacant for any reason whatsoever or as an additional Director or
Directors,                provided that the total number of Directors shall not exceed
the maximum number                fixed in Article 78 above. The office of Directors,
other than External                Directors, appointed as aforesaid shall terminate at
the end of the Annual                Meeting held following their appointment.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|83. | The
General Meeting or the Board may provide that the office of a Director
               appointed by them, as the case may be, shall commence at a date later than
his                appointment.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|84. | Notwithstanding
the aforesaid, the General Meeting may at any time, by a simple                majority,
remove any Director, other than an External Director, from office                prior to
the expiration of his office, provided that there shall be afforded to
               such Director a reasonable opportunity to present his standpoint before
the                General Meeting. Any General Meeting may also appoint, by a simple
majority,                another person as a Director in place of a Director removed from
office as                aforesaid. A Director appointed as aforesaid shall continue in
office only                during such time as the Director in whose place he was
appointed would have held                office.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|85. | Without
prejudice to the provisions of any law, the office of any Director,                other
than an External Director, shall terminate prior to the termination of the
               period for which he was appointed, in the event that there shall be served
upon                him a demand that he should resign signed by at least two thirds of
the                Directors then officiating.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|86. | In
the event of the vacation of the office of a Director, the Board may continue
               to act in all matters so long as the number of Directors does not fall
below the                minimum number of Directors fixed in Article 78 above. If the
number of                Directors shall fall below such number, the Board may not act
otherwise than for                the convocation of a General Meeting for the purpose of
the appointment of                additional directors but not for any other purpose.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|87. | A
Director may resign by notice to the Board, to the chairman or to the office,
               as required by the Companies Law, and his resignation shall come into
effect                upon delivery of such notice, unless the notice shall determine a
later date. A                Director shall state the reasons for his resignation.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|88. | Subject
to the provisions of the Companies Law, the Company may pay the                Directors
remuneration for carrying out their duty as Directors.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------

|89. | 89.1 | A Director may appoint a substitute director in his place subject to the
               approval of the substitute by the Board (hereinafter  The
Substitute                Director). Notwithstanding the aforesaid, there shall not
be appointed as                a Substitute Director, any person who is not himself
qualified to be appointed a                director, or who himself already officiates as
a Director of the Company or as a                Substitute Director of another Director
or a representative of a corporation.
|--- | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

18

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| | 89.2 | The
same rules shall apply to a Substitute Director as to the Director who appointed the
Substitute Director and the Substitute Director may attend a meeting of the Board and/or
committees of the Board, to participate and vote thereat, in the same manner as could the
Director who appointed the Substitute.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 89.3 | A
Director who has appointed a Substitute Director may, subject to the provisions of law,
revoke the appointment at any time. In addition, the office of a Substitute Director
shall be vacated at any time that the office of the Director who appointed the Substitute
is vacated in any manner whatsoever.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 89.4 | Any
appointment or revocation of the appointment of a Substitute Director, as aforesaid,
shall be made by notice in writing which shall be lodged with the Substitute Director and
with the Company, and which shall come into force after the lodging of the instrument of
appointment as aforesaid or upon such date as is fixed in the instrument of appointment,
whichever is the later.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 89.5 | Subject
to the provisions of the Companies Law, the Company may pay Substitute Directors
remuneration for participation at meetings of the Board.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------

External Directors

|90. | At
least two External Directors shall officiate in the Company with respect to
          whom the provisions fixed in the Companies Law shall be applicable.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

Powers and Duties of
The Board

|91. | The
Board shall have all the powers and authorities conferred upon it by these
          Articles, by the Companies Law and by any law.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------

|92. | Without
derogating from the provisions of these Articles, the Board shall           formulate the
policies of the Company and shall supervise the performance of the           office and
actions of the General Manager, including inter alia 
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 92.1 | Determination
of the business plans of the Company, financing principles and priorities;
| | ---- | ----------------------------------------------------------------------------------------

| | 92.2 | Examination
of the financial  position of the Company and determination of the credit framework which
                  the Company may receive;
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------

| | 92.3 | Fixing
the organizational structure and salary policies;
| | ---- | --------------------------------------------------------

| | 92.4 | Decision
as to the issue of a series of debentures;
| | ---- | ---------------------------------------------------

| | 92.5 | Responsibility
for the preparation and approval of Financial  Statements , in accordance with section
                  117 of the Companies Law;
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------

| | 92.6 | Reporting
to the Annual  Meeting on the affairs of the Company and business  results,  in
 accordance                   with section 173 of the Companies Law;
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 92.7 | Appointment
and dismissal of the General Manager;
| | ---- | -------------------------------------------------

19

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| | 92.8 | Decision
with regard to activities and transactions which require approval of the Board in
accordance with these Articles or in accordance with the provisions of sections 255 and
268 to 275 of the Companies Law;
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 92.9 | Allotment
of shares and securities  convertible into shares up to the registered share capital of
the                   Company;
| | ---- | --------------------------------------------------------------------------------------------------------------------------------

| | 92.10 | Decision
as to the distribution of dividends or bonus shares, as the case may be;
| | ----- | ---------------------------------------------------------------------------------

| | 92.11 | Decision
as to acquisition within the meaning of section 1 of the Companies Law, from all or part
or any of the shareholders of the Company, at its discretion;
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 92.12 | Opinion
as to a special  acquisition  tender, in accordance with the provisions of section 329 of
the                   Companies Law;
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------

|93. | The
powers of the Board in accordance with Article 92 may not be delegated to
               the General Manager.
|--- | -----------------------------------------------------------------------------------------------------------------

|94. | Any
power of the Company which has not been conferred by law or by these
               Articles to any other body, may be exercised by the Board.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------

|95. | 95.1 | The Board may resolve that the powers vested in the General Manager shall
               be transferred to the authority of the Board, the aforesaid in respect of
a                specific matter or for a particular period.
|--- | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 95.2 | Without
derogating from the aforesaid, the Board may instruct the General Manager as how to act
with regard to a specific matter. If the General Manager shall not carry out such
instruction, the Board may exercise instead of him the powers necessary for carrying out
such instruction.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 95.3 | If
the General Manager is unable to carry out his powers, the Board may carry them out in
his place.
| | ---- | ----------------------------------------------------------------------------------------------------

|96. | Subject
to the provisions of the Companies Law, the Board may delegate its                powers
to the General Manager, to an officer of the Company or to any other
               person. Delegation of the powers of the Board may be with regard to a
specific                matter or for a particular period, the aforesaid at the
discretion of the Board.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Grant of Mortgages

|97. | Without
derogating from any power vested in the Board in accordance with these
               Articles, the Board may, from time to time, at its discretion, decide upon
the                issue of a series of debentures, including capital notes or
undertakings,                including debentures, capital notes or undertakings which
can be converted into                shares, and also the terms thereof, and mortgage of
the property of the Company,                in whole or in part, at present or in future,
by floating or fixed charge.                Debentures, capital notes, undertakings or
other securities, as aforesaid, may                be issued either at a discount or at a
premium or in any other
manner, whether with deferred rights or special rights and/or preferred rights and/or
other rights, all the aforesaid as the Board may, at its discretion, determine.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

20

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Committees of the
Board

|98. | Subject
to the provisions of the Companies Law, the Board may, as it deems fit,
                    set up committees of two or more members, appoint members of such
committees                     from members of the Board (hereinafter  A
Board Committee), and                     delegate its powers, in whole or in part, to a
Board Committee. Notwithstanding                     the aforesaid, the Board shall not
delegate to a Board Committee any of its                     powers in the following
matters otherwise than for the receipt of                     recommendations only:
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 98.1 | Determination
of the general policies of the Company;
| | ---- | -----------------------------------------------------

| | 98.2 | Distribution,
 unless than with regard to the  purchase of shares of the Company in  accordance  with
               the framework already determined by the Board;
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 98.3 | Determination
of the standpoint of the Board in any matter which is subject to approval by a General
Meeting or formulating an opinion with regard to the merit of a special acquisition
tender in accordance with section 329 of the Companies Law;
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 98.4 | Appointment
of directors;
| | ---- | -------------------------

| | 98.5 | Allotment
of shares or of securities which may be converted or realized for shares, or a series of
debentures, other than the allotment of shares resulting from the realization or
conversion of securities of the Company;
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 98.6 | Approval
of the Financial Statements;
| | ---- | -------------------------------------

| | 98.7 | Approval
of transactions and actions which require approval by the Board in accordance with
sections 255 and 268 to 275 of the Companies Law.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------

|99. | A
resolution carried or an action taken by a Board Committee shall be as
               effective as a resolution carried or action taken by the Board, unless
otherwise                expressly determined by the Board with regard to a specific
matter or with                regard to a specific committee. The Board may from time to
time enlarge, limit                or annul the delegation of powers to a Board
Committee, however no such                limitation or annulment as aforesaid, shall
prejudice the validity of any                resolution of the Board Committee in
accordance with which the Company shall                have acted vis-a-vis a third party
who was not aware of the annulment.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|100. | 100.1 | The quorum for proceeding to business at a meeting of a Board Committee
               shall be two committee members officiating at the time of the meeting, in
person                or by their substitute, unless otherwise determined by the Board.
|---- | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 100.2 | The
provisions of these Articles with regard to actions of the Board, shall apply, except as
the context otherwise requires, also to Board Committees, so long as they shall not have
been replaced by instructions of the Board in such respect, all the aforesaid subject to
the provisions of the Companies Law.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 100.3 | A
Board Committee shall regularly report its resolutions and recommendations to the Board.
| | ----- | ------------------------------------------------------------------------------------------

21

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|101. | 101.1 | The Board shall, from among its members, appoint an Audit Committee. The
               number of members of the Audit Committee shall not be less than three and
all                the External Directors shall be members thereof. The following persons
shall not                be members of the Audit Committee: The Chairman of the Board,
any director who                is employed by the Company or who provides the Company
with services on a fixed                basis, any controlling shareholder of the Company
or a relative of same.
|---- | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 101.2 | The
functions of the Audit Committee shall be as determined by the Companies Law including
any other function which may be imposed upon it by the Board.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------

Proceedings of the
Board

|102. | Subject
to the provisions of these Articles, the Board may hold meetings to           carry out
its functions, may adjourn its meetings and may organize its actions           and
deliberations as it may deem fit.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|103. | The
Board shall appoint one of its members to act as Chairman of the Board and           may
appoint more than one Chairman of the Board (each of whom is hereinafter
          referred to as  The Chairman of the Board). The Board may
also           remove the Chairman of the Board from office and appoint another in his
place.           The Board may appoint one or more of its members as Vice-chairman of the
Board           who shall serve in place of the Chairman in his absence. The Board may
fix the           period during which the Chairman and Vice-Chairmen of the Board shall
remain in           office. If no such period is fixed, the Chairman and Vice-Chairmen of
the Board           shall remain in office so long as they officiate as directors.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|104. | The
Chairman of the Board shall preside at and manage the proceedings at           meetings
of the Board. If the Chairman of the Board is absent from a meeting of           the
Board in accordance with advance notice given by him, or if he is not           present
at the meeting within 15 minutes from the time fixed for the meeting,           then the
Vice-Chairman of the Board (if appointed) shall preside at the meeting.           In the
absence from the meeting of both the Chairman and Vice-Chairmen of the           Board,
the Board members present shall elect one of their number as chairman of           the
meeting.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|105. | The
Board shall hold meetings in accordance with the needs of the Company.
|---- | --------------------------------------------------------------------------

|106. | The
Chairman is authorized to convene the Board at any time and to determine the
          place and time of any Board meeting.
|---- | -------------------------------------------------------------------------------------------------------------------------------

|107. | Without
derogating from the aforesaid, the Chairman is obliged to convene the           Board in
any of the following instances:
|---- | --------------------------------------------------------------------------------------------------------------------------------

| | 107.1 | On
receipt of a demand from at least two directors for the convocation of the Board, for
discussion of the matter detailed in such demand;
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------

| | 107.2 | On
receipt of a notice or report from the General Manager which requires an action by the
Board;
| | ----- | ------------------------------------------------------------------------------------------------

22

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| | 107.3 | On
receipt of a notice from the auditor as to material defects in the bookkeeping of the
Company.
| | ----- | -------------------------------------------------------------------------------------------------

| | Upon
receipt of such a notice or demand as above, the Chairman shall convene the Board,
without delay, and not later than within 14 days of the date of the demand, notice or
report, as the case may be.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|108. | 108.1 | Prior notice of the convening of the Board shall be given to all members
               of the Board reasonably in advance of the meeting.
|---- | ----- | ------------------------------------------------------------------------------------------------------------------------------------------

| | 108.2 | Notwithstanding
the aforesaid,  with the consent of all the directors,  the Board may hold a
                  meeting without notice.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------

|109. | The
agenda of Board meetings shall be determined by the Chairman, and shall
          include:
|---- | ----------------------------------------------------------------------------------------------

| | 109.1 | Matters
determined by the Chairman;
| | ----- | -----------------------------------

| | 109.2 | Matters
fixed in accordance with Article 107 above;
| | ----- | ---------------------------------------------------

| | 109.3 | Any
matter which a director or the General  Manager may,  reasonably in advance of the
convening of a                   Board meeting, request the Chairman to  include on the
agenda. (Hereinafter - "The Agenda").
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|110. | There
shall be detailed in the notice convening the Board, the time and place at
               which the meeting is to be held and reasonable details as to the matters
on the                agenda of the meeting.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|111. | Notice
of a meeting of the Board shall be delivered to the address of the
               director furnished to the Company unless the director has requested that
the                notice be delivered to him at another address.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|112. | The
quorum for commencing a meeting of the Board shall be half of the members of
               the Board officiating at the time of the meeting, in person or by their
               substitute, or four members  the smallest.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|113. | 113.1 | Each director shall have one vote on a poll of the Board. Resolutions of
               the Board shall be carried by a majority of the votes of the directors
present                and voting at the meeting without taking abstention votes into
account. The                Chairman of the Board shall not have an additional or casting
vote.
|---- | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 113.2 | In
the event of an equality of votes, the resolution voted upon shall be deemed to have been
rejected.
| | ----- | ------------------------------------------------------------------------------------------------------

|114. | The
Board may hold its meetings by the use of any means of communication           provided
that all the directors can hear one another at the same time. The Board           may
determine the mode and methods for conducting a meeting by means of
          communication.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|115. | The
Board is authorized to adopt resolutions even without actually holding a
          meeting, provided that all the directors entitled to participate in the
          proceedings and to vote on the matter, have so consented. The provisions of
          Article 113 above subject to the changes required by the context, shall apply
to           such a resolution. A resolution carried in accordance with this Article
shall be           valid for all intents and purposes, as though it had been carried at a
duly           convened and conducted meeting of the Board.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

23

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Minutes

|116. | The
Board shall cause minutes of the proceedings at meetings of the Board to be
          kept; The minutes shall be filed in registers kept for such purpose and, inter
          alia, shall include the following details:
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 116.1 | The
names of directors participating in and the names of other persons present at each
meeting;
| | ----- | -----------------------------------------------------------------------------------------------

| | 116.2 | The
matters discussed at the meetings and the resolutions carried.
| | ----- | ------------------------------------------------------------------

| | All
minutes shall be signed by the Chairman of the Board or the Chairman of the meeting, as
the case may be, minutes approved and signed as aforesaid, shall constitute prima facie
evidence as to the contents thereof.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|117. | The
provisions of Article 116 above shall apply also with regard to the meetings           of
every Committee of the Board and with regard to the carrying of resolutions           by
the Board without meeting as in Article 115 above.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The General Manager

|118. | The
Board may from time to time appoint a General Manager of the Company or more
          than one General Manager (each one of whom is hereinafter referred to as           The
General Manager). The Board may also dismiss or replace the           General
Manager at any time at its discretion, subject to the terms of any           contract
between the General Manager and the Company.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|119. | The
General Manager is not bound to be a shareholder of the Company or a           director.
|---- | --------------------------------------------------------------------------------------------

|120. | The
General Manager shall be responsible for the current management of the           affairs
of the Company within the framework of the policies determined by the           Board and
subject to the directives of the Board.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|121. | The
General Manager shall have all the management and executive powers which are
          not conferred by law or in accordance with these Articles on any other organ of
          the Company, with the exception of such powers, if any, as may be transferred
          from the General Manager to the Board in accordance with the provisions of
          Article 95.1 above; The General Manager shall be subject to the supervision of
          the Board.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|122. | Subject
to the provisions of the Companies Law and to the provisions of these           Articles,
the Board may, from time to time, at its discretion give to and confer           upon the
General Manager any of the powers of the Board in accordance with these
          Articles, and may confer such powers for such period, for such purposes, upon
          such terms and with such limitations as the Board may deem fit, and the Board
          may also confer such powers, either with or without waiving its own powers in
          such matter or in place and instead of them, in whole or in part, and may from
          time to time annul, rescind and change such powers, in whole or in part.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

24

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|123. | The
General Manager may, with the approval of the Board, delegate his powers to
          another person or persons under his authority; Such approval may be either
          general or with regard to a specific matter.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|124. | Without
derogating from the provisions of the Companies Law or from any other           law, the
General Manager shall submit to the Board reports on such matters, at           such
times and to such extent as may be required by the Board, either by a           specific
resolution or within the framework of the procedures of the Board.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|125. | The
remuneration of the General Manager may be paid by way of salary or by
          commission or participation in profits or by the grant of or right to purchase
          securities, or in any other manner.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Validity of Actions
and Approval of Transactions

|126. | Subject
to the provisions of any law, all actions of the Board or of a Committee
               of the Board or of any person acting as a director or as a member of a
Committee                of the Board or of the General Manager, as the case may be,
shall be valid even                though it may subsequently transpire that there was
some defect in the                appointment of the Board, of the Committee of the
Board, of the director who is                a committee member or of the General
Manager, as the case may be, or that any of                the said officials was not
qualified to hold office.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|127. | 127.1 | Subject to the provisions of the Companies Law, the fact that an officer
               of the Company holds shares of the Company or is an interested party or an
               officer in any other corporation, including a corporation in which the
Company                is an interested party or a shareholder of the Company, shall not
disqualify the                officer from being an officer of the Company. In addition,
an officer shall not                be disqualified from being an officer of the Company,
as a result of the                entering into a contract with the Company, in any
matter and in any manner                whatsoever, by himself or by such a corporation
as above.
|---- | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 127.1 | Subject
to the provisions of the Companies Law, the fact that a person is an officer of the
Company shall not disqualify him and/or a relative of his and/or a corporation in which
he is an interested party, from entering into an agreement with the Company in respect of
any transactions in which the officer has any personal interest.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 127.2 | Subject
to the provisions of the Companies Law, an officer shall be entitled to participate in
the deliberations and vote with regard to the approval of transactions in which he has a
personal interest.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|128. | Subject
to the provisions of the Companies Law, a transaction of the Company           with an
officer of the Company or with a controlling shareholder, or a           transaction of
the Company with a third party in which an officer of the Company           or a
controlling shareholder has a personal interest, and which are not out of           the
ordinary course of business, shall be approved in the following manner:
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

25

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| | 128.1 | Such
agreement as above, which is not out of the ordinary course of business, shall be
approved by the Board or by the Audit Committee or by such other organ empowered by the
Board for such purpose, whether by a specific resolution or within the framework of the
Board procedures, whether by general approval or by approval with regard to a specific
type of transaction or by approval of a specific transaction.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 128.2 | The
approval of transactions which are not out of the ordinary course of business as
aforesaid, may be given by a general approval of a specific type of transaction or by
approval of a specific transaction.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|129. | Subject
to the provisions of the Companies Law, a general notification given to           the
Board by an officer or by a controlling shareholder, with regard to a           personal
interest in any particular body, detailing such personal interest,           shall
constitute a disclosure by the officer or controlling shareholder to the
          Company of his personal interest as aforesaid, for the purpose of the entering
          into an agreement with such body in a transaction which is not out of the
          ordinary course of business.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Signature on behalf
of the Company

|130. | Subject
to the provisions of the Companies Law and of these Articles, the Board           may
authorize any person to act and sign on behalf of the Company, whether on           his
own or jointly with any other person, whether generally or with regard to
          specific matters.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|131. | The
Company shall have a stamp bearing the name of the Company. No signature on           a
document shall bind the Company unless signed by the persons authorized to           sign
in the name of the Company together with the stamp or the printed name of           the
Company.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Appointment of
Attorneys

|132. | Subject
to the provisions of the Companies Law, the Board may at any time grant           a Power
of Attorney to any person to act as attorney of the Company for such           purposes,
with such powers and discretion, for such period and subject to such
          conditions, all the aforesaid as the Board may deem fit.The Board may confer
          upon such person, inter alia, power to assign, in whole or in part, to another
          person, the powers, authority and discretion conferred upon him.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Exemption, Indemnity
and Insurance

|133. | Subject
to the provisions of the Companies Law, the Company may exempt any           officer of
the Company from liability, in whole or in part, in respect of damage           resulting
from a breach of his duty of care to the Company.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|134. | Subject
to the provisions of the Companies Law, the Company may insure the           liability of
any officer of the Company in respect of liability which may be           imposed upon
him as a result of any act carried out by him in his capacity as an           officer of
the Company, in any of the following instances:
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 134.1 | Breach
of a duty of care to the Company or to any other person;
| | ----- | ---------------------------------------------------------------

26

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| | 134.2 | Breach
of a duty of trust to the Company provided that the officer acted bona fide and had
reasonable grounds for believing that the act would not harm the interests of the
Company;
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 134.3 | A
financial liability imposed upon him to a third party;
| | ----- | --------------------------------------------------------

| | 134.4 | Any
other event in respect of which insurance of an officer is permitted and/or may be
permitted.
| | ----- | -------------------------------------------------------------------------------------------------

|135. | Subject
to the provisions of the Companies Law 
|---- | ------------------------------------------------

| | 135.1 | The
Company may undertake, in advance, to indemnify one of its officers for a liability or
expense as set out in section 136 below, imposed upon him as the result of an action
taken by virtue of service as an officer of the Company, provided such liability is
restricted to the type of events that in the opinion of the Board of Directors are
foreseen in light of the Companys actual activities, at the time such undertaking
for indemnification is made, and for such amount or measure as the Board of Directors
determined, is reasonable in the circumstances of the case and does not exceed,
cumulatively, twenty five percent of the Companys equity according to the
consolidated financial statements last published before the de facto grant of
indemnification payment (hereinafter: the Undertaking to Indemnify)
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 135.2 | Without
derogating from the aforesaid in Article 135.1 above, the Company may indemnify an
officer of the Company retroactively in respect of a liability or expense as detailed in
Article 136 hereafter, imposed upon him as a result of an act carried out by him in his
capacity as an officer of the Company, provided that the amount of the indemnity shall
not exceed the amount specified on Article 135.1 above.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|136. | An
Indemnity undertaking or an Indemnity, as aforesaid in Article 135 above, may
          be issued with respect to a liability or expense as detailed in Articles 136.1
          to 136.3 below, which is imposed upon the officer as a result of an act carried
          out by him in his capacity as an officer of the Company, as follows:
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 136.1 | A
monetary liability imposed upon him in favor of a third party pursuant to a judgment,
including a judgment by way of compromise or a judgment of an arbitrator approved by a
court;
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 136.2 | Reasonable
expenses of the proceedings, including lawyers fees, expended by the officer or imposed
upon him by the court, in proceedings issued against him by or on behalf of the Company
or by a third party, or with regard to criminal proceedings from which the officer was
acquitted or criminal proceedings in which he was convicted but which do not require
proof of a criminal intention;
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 136.3 | Reasonable
legal expenses, including attorneys fees, that the officer paid following an
investigation or proceeding against him by an authority authorized to perform such
investigation or proceeding, ending without any criminal indictment being filed against
him, and without having any financial liability imposed upon him as an alternative to a
criminal proceeding, or having ended without any criminal indictment being filed but
having a financial liability imposed upon him as an alternative to a criminal proceeding
for a crime not requiring proof of criminal intent.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

27

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| | 136.4 | Any
other liability or expense regarding which it is permitted and/or will be permitted by
law to indemnify an officer.
| | ----- | -----------------------------------------------------------------------------------------------------------------------

|137. | Subject
to the provisions of the Companies Law 
|---- | ------------------------------------------------

| | 137.1 | The
Company may undertake, in advance, to indemnify any person, including a Company officer,
currently serving or who has served on behalf of the Company by its request as a director
of another company in which the Company directly or indirectly holds shares, or in which
the Company possesses any interest (hereinafter: a director in the other company), for a
liability or expense as set out in article 136 above, imposed upon him on account of an
action undertaken by virtue of being a director of the other company, provided such
liability is restricted to the type of events that in the opinion of the board of
directors are foreseen in light of the Companys actual activities, at the time such
undertaking for indemnification is made, and for such amount or measure as the board of
directors prescribes, being reasonable under the circumstances and not exceeding,
cumulatively, twenty five percent of the Companys shareholders equity
according to the last consolidated financial statements published before actually making
such indemnification payment (hereinafter: indemnification undertaking).
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 137.2 | Without
derogating from the aforesaid in Article 137.1 above, the Company may indemnify a
Director of the other company retroactively in respect of a liability or expense as
detailed in Article 136 above, imposed upon him as a result of an act carried out by him
in his capacity as a director of the other company, provided that the amount of the
indemnity shall not exceed the amount specified on Article 137.1 above.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|138. | Subject
to the provisions of the Companies Law, the Company may issue an           undertaking in
advance to indemnify an employee or clerk of the Company who is           not an officer
of the Company or to indemnify him retroactively with respect to           any monetary
liability imposed upon him in favor of any third party with respect           to an act
carried out by him bona fide in his capacity as an employee or clerk           of the
Company, provided that the amount of the indemnity shall not exceed the           amount
specified on Article 137.1 above.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|139. | Subject
to the provisions of the Companies Law, nothing in these Articles shall           limit
the Company, in any manner whatsoever, with regard to taking out insurance           or
to the grant of exemption or indemnity:
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 139.1 | With
respect to an officer of the Company or a director of the other company, to the extent
that the insurance, the exemption or the indemnity are not forbidden by law.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 139.2 | With
respect to any person who is not an officer of the Company or a director of the other
company, including but without derogating from the generality of the aforesaid,
employees, contractors or consultants.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

28

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Dividends, Reserve
Funds and Capitalization of Reserve Funds and Profits

|140. | The
Board may, before deciding on the distribution of a dividend as in Article           142
hereafter, appropriate out of the profits, such sums, as the Board may deem
          fit, to a General Fund or a Reserve Fund for the distribution of dividends,
          distribution of bonus shares or any other purpose, as the Board may in its
          discretion determine.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|141. | Until
use is made of the said funds, the Board is authorized to invest the           monies
appropriated as aforesaid and the monies of the funds, in any investment           as the
Board may deem fit, to manage such investments, to vary them or otherwise           to
use them, and the Board is authorized to divide the Reserve Fund into special
          funds and to use each fund or part thereof for the purpose of the business of
          the Company, without holding the same distinct from the other assets of the
          Company, all the aforesaid at the discretion of the Board and upon such terms
as           the Board may determine.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|142. | Subject
to the provisions of the Companies Law, the Board may resolve upon the
          distribution of a dividend. When deciding on the distribution of a dividend,
the           Board may decide that the dividend shall be paid, in whole or in part, in
cash           or by way of the distribution of assets in specie, including securities,
or in           any other manner at the discretion of the Board.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|143. | 143.1 | A. | Subject to the provisions of the Companies Law, the Board may resolve
upon the allotment of bonus shares and to convert to share capital part of the profits of
the Company, within the meaning of section 302(b) of the Companies Law, part of a premium
of shares or part of any other source included in the shareholders equity of the Company
as stated in the last Financial Statements of the Company, in such amount as may be
determined by the Board and which is not less than the par value of the bonus shares.
|---- | ----- | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | B. | When
deciding on the allotment of bonus shares, the Board shall determine
               whether the bonus shares shall be of one class to all shareholders
               notwithstanding the classes of shares held by them, or that each such
               shareholder shall receive bonus shares of the same class with respect to
each                class of shares held by him.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | C. | Bonus
shares allotted in accordance with this Article shall be deemed fully paid
               up.
| | -- | ---------------------------------------------------------------------------------------------------

| | 143.2 | When
deciding upon the allotment of bonus shares, the Board may decide that the Company shall
transfer to a special fund designated for the distribution of bonus shares in the future,
such sum as the conversion thereof to share capital shall be sufficient to allot to any
person who is at such time entitled for any reason whatsoever to purchase shares in the
Company (including an entitlement which can only be realized at a subsequent date), those
bonus shares to which such person would have been entitled had he realized his
entitlement to purchase such shares prior to the date determining the right to receive
the bonus shares (in this Article  The Determining Date). If subsequent
to the determining date, such person shall realize his entitlement to purchase the shares
or part of them, the Company shall allot to him those bonus shares of a par value which
he would have received had he realized, prior to the determining date, his entitlement to
purchase those shares which he actually did purchase, the aforesaid by converting to
share capital an appropriate part of the aforesaid special fund. Bonus shares shall
entitle the holders thereof to participate in the distribution of cash dividends or bonus
shares commencing from such time as is fixed by the Board. For the purpose of fixing the
amount to be appropriated to the aforesaid special fund, any amount appropriated to the
fund with respect to previous distributions of bonus shares, shall be deemed as though it
had already been capitalized and there had been allotted therefrom shares entitling the
persons entitled to purchase shares, to the bonus shares.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

29

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|144. | Subject
to the rights assigned to the classes of shares issued by the Company           and to
the provisions of these Articles, a dividend or bonus shares shall be
          distributed to the shareholders proportionately to the par value of each share
          without taking into consideration any premium paid for such share.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|145. | In
order to carry out any resolution for the distribution of a dividend or for           the
allotment of bonus shares, the Board is authorized:
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------

| | 145.1 | To
settle as it may deem fit any difficulty which may arise and to take such steps as it may
deem necessary in order to overcome the difficulty.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------

| | 145.2 | To
decide that fractions or fractions less than an amount fixed by the Board, shall not be
taken into account in order to adjust the entitlement of the shareholders or to decide on
the sale of fractions of shares and the distribution of the net proceeds to the persons
entitled thereto.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 145.3 | To
authorize signatures on behalf of the shareholders of any agreement or other document
which may be required in order to give effect to the allotment and/or distribution, and
in particular to authorize the signing and lodging for registration of a document in
writing in accordance with section 291 of the Companies Law.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 145.4 | To
determine the value of assets to be distributed and to decide that payments in cash shall
be paid to the shareholders on the basis of the valuation so determined.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 145.5 | To
vest monies or specific assets in trustees for the persons entitled thereto, as the Board
may deem expedient.
| | ----- | ----------------------------------------------------------------------------------------------------------------

| | 145.6 | To
make any other arrangement or settlement as may in the opinion of the Board be required
in order to enable the allotment or the distribution, as the case may be.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

|146. | Dividends
or other benefits with respect to shares shall not bear interest.
|---- | ---------------------------------------------------------------------------

|147. | The
Board may withhold any dividend or bonus shares or other rights with respect           to
shares the consideration for which, in whole or in part, has not been paid to
          the Company, and to collect any such amount as aforesaid or consideration
          received from the sale of the bonus shares or other rights, on account of the
          debts or liabilities with respect to the said shares, the aforesaid whether the
          said shares are solely owned by the shareholder in debt or whether the shares
          are owned jointly with other shareholders.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

30

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|148. | The
Board may withhold any dividend or bonus shares or other rights with respect           to
shares of which a person is entitled to be registered as owner thereof in the
          Register or which he is entitled to transfer, in accordance with Article 29 or
          31 above, as the case may be, until such person is registered as the owner
          thereof or until he shall duly transfer them, as the case may be.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|149. | The
Board may, from time to time, decide upon the mode of payment of dividends           or
allotment of bonus shares or transfer thereof to the persons entitled thereto
          and may also determine instructions, procedures and arrangements relating
          thereto, both with regard to the registered shareholders and also with regard
to           unregistered shareholders. Without derogating from the generality of the
          aforesaid, the board may determine as follows:
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 149.1 | A. | Subject to the provisions of sub-article B. hereafter, any dividend or monies to be
distributed to a registered shareholder, shall be paid by posting a check to his address
as registered in the Shareholders Register, or in the case of jointly registered
shareholders, to the person whose name appears first in the Shareholders Register with
regard to such shares. The posting of any check as aforesaid shall be at the risk of the
registered shareholder; without derogating from the aforesaid, the Board may determine
that any dividend less than a specific amount fixed by the Board, shall not be sent by
check as aforesaid and that the provisions of sub-article B. hereafter shall apply
thereto.
| | ----- | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | B. | The
Board may determine that payment of a dividend or monies to be distributed           to
registered shareholders shall be effected at the Office or at such other           place
as the Board may fix.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 149.2 | Any
dividend distributed to unregistered shareholders shall be transferred to such
shareholders by means of the Nominees Company or in such other manner as the Board may
determine.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|150. | If
two or more persons are registered in the Register as joint owners of any
          share, each of them is entitled to give a valid receipt with respect to any
          dividend, share or other security, or other monies or rights payable with
          respect to such share.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Company Documents

|151. | 151.1 | Shareholders are entitled to peruse the documents of the Company detailed
               in section 184 of the Companies Law in the circumstances fixed for such
purpose.
|---- | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 151.2 | Without
derogating from the aforesaid in Article 151.1 above, the Board may, at its discretion,
permit the perusal of the documents of the Company, or any of them, also to shareholders
or any of them, as it may in its discretion deem fit.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

31

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| | 151.3 | Shareholders
shall not have a right to peruse the documents of the Company or any of them, unless such
right has been conferred upon them by any legislation or regulation or unless permitted
so to do by the Board as in Article 151.2 above.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|152. | Subject
to the provisions of any law, any book, list or register which the           Company is,
by law or by these Articles, bound to maintain, shall be kept by           such
technical, mechanical or other means as may be decided by the Board.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Financial Statements

|153. | The
Financial Statements of the Company shall be signed by the persons           authorized
by the Board for such purpose, as required by law.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------

Auditors

|154. | An
accountant auditor or accountant auditors shall be appointed at every Annual
               Meeting and shall officiate in that capacity until the closing of the
following                Annual Meeting.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|155. | 155.1 | The Board shall in its discretion determine the auditing fees of the
               accountant auditor appointed.
|---- | ----- | -----------------------------------------------------------------------------------------------------------------

| | 155.2 | Fees
of the accountant auditor with respect to additional services to the Company which are
not audit acts, shall be determined by the Board at its discretion.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

Notices

|156. | The
giving of notices or service of documents to shareholders and to the
               Nominees Company, in accordance with the provisions of the Companies Law
or of                these Articles, shall be effected in one of the manners referred to
in this                Chapter.
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|157. | Notice
of a General Meeting shall be served as provided in Article 54 above.
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|158. | 158.1 | Without derogating from the aforesaid, the Company may serve a shareholder
               with any notice or document, by delivery by hand or by facsimile or by
dispatch                by post or by email. Dispatch by post shall be to the address of
the shareholder                registered in the Register, or if no such address is
registered, to such address                as may have been furnished by him to the
Company for the purpose of sending                notices to him. A notice delivered by
facsimile shall be sent to the shareholder                according to the address
furnished by him to the Company. A notice delivered by                e-mail shall be
sent to the shareholder according to the e-mail furnished by him                to the
Company.
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| | 158.2 | A. | A notice or document  delivered to a shareholder,  shall be deemed to have been
served                         at such time as delivered by hand.
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| | B. | A
notice or document dispatched by post, shall be deemed to have been duly
          served, if handed in for dispatch at any post office when correctly addressed
          and properly stamped. Service shall be deemed to have been effected at such
time           as the letter is delivered by the post in the usual course and not later
than           two days from the date that the letter containing such notice was handed
to the           post office.
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| | C. | A
notice sent by facsimile or by email shall be deemed to have been served           twenty
four hours after dispatch.
| | -- | ----------------------------------------------------------------------------------------------------------------------

|159. | Without
derogating from the aforesaid, the Company may, subject to the           provisions of
the Law and/or another applicable law, serve a notice to the           shareholders by a
single publication in two daily newspapers published in Israel           in Hebrew,
either in addition or in place of a notice as in Article 158 above.           The date of
publication in the newspaper shall be deemed to be the date on which           notice was
received by the shareholders.
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|160. | The
Company may give notice as to service of a document at the Office or at such
          other place as may be fixed by the Board or as to service in any other manner,
          including by means of the Internet.
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|161. | The
Company may serve a notice or document to joint shareholders by the dispatch           of
the same to the shareholder whose name appears first in the Shareholders
          Register with regard to such share.
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|162. | The
service of a notice or document to one member of a family residing together
          with the person for whom the notice or document is intended, shall be deemed as
          service of same to the intended person.
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|163. | Any
person who by operation of law, transfer or other means shall become           entitled
to any share, shall be bound by every notice with respect to such share           which
was duly given, prior to the entry of his details in the register, to the
          person from whom he derives his title to such share.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|164. | Any
notice or document given to a shareholder of the Company in accordance with           the
provisions of these Articles, shall be deemed to have been duly served
          notwithstanding the decease, bankruptcy or liquidation of such shareholder or
          the transmission of the right to the shares by law (whether or not the Company
          is aware of same), so long as no other person has been registered as owner of
          the shares in his place, and despatch or delivery as aforesaid shall for all
          intents and purposes be deemed sufficient with regard to any person having an
          interest in such shares and/or entitled to them by virtue of transmission of
the           right by law,whether jointly with such shareholder or on his behalf or in
his           place.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|165. | Subject
to the provisions of any law, any shareholder, director or other person
          entitled to receive notice in accordance with these Articles or by the
Companies           Law, may waive receipt of same, either in advance or retroactively,
either with           regard to a specific instance or generally, and by his doing so, it
shall be           deemed as though the notice had been duly given, and any procedure or
act with           respect to which the notice was bound to be given, shall be deemed as
valid and           effective.
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|166. | A
certificate in writing signed by a Director or by the Secretary of the Company
          with regard to the dispatch or giving of a notice in one of the manners
detailed           in these Articles, shall constitute conclusive evidence to the facts
detailed in           such certificate.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|167. | When
prior notice of a given number of days or a notice effective for a specific
          period is required to be given, the day of service shall, unless otherwise
          determined, be counted in the number of days or the specific period. If notice
          is given in more than one of the manners detailed above, it shall be deemed to
          have been given at the earliest on which it is deemed to have been served as
          aforesaid.
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Merger

|168. | Approval
of merger as provided in section 327 of the Companies Law, is subject           to a
simple majority at the General Meeting or Class Meeting, as the case may           be,
all the aforesaid subject to the applicable provisions of any law.
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Winding Up

|169. | Subject
to the provisions of any law, the liquidator, whether on voluntary or           other
liquidation, may in accordance with a resolution of a General Meeting           carried
by a special majority, distribute among the shareholders in specie, the           excess
assets, in whole or in part, and may in accordance with a resolution of a
          General Meeting carried by a special majority, vest any part of the excess
          assets in trustees upon such trust for the shareholders as the liquidator may
          deem fit. For the purpose of the distribution of the excess assets in specie,
          the liquidator may determine the proper value of the assets available for
          distribution and determine how the distribution among the shareholders will be
          carried out taking into consideration the rights of the various classes of
          shares of the Company owned by them.
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