Document:

Unassociated Document

    
      Exhibit
4.20

    

     

    
      [Unofficial
English translation]

    
      Text for
signature

    

    Special
Collective Agreement

    

    Signed
on the 5th day of
April 2009

    

    
      	
              Between: 

            	
              BLUE
      SQUARE – ISRAEL LTD.

            

    

    

    (hereinafter:
“Blue Square”)

    

    
      	
              And: 

            	
              BLUE
      SQUARE CHAIN PROPERTIES & INVESTMENTS
LTD.

            

    

    

    (hereinafter:
“the Company”)

    

    
      	
              And: 

            	
              THE
      NEW GENERAL FEDERATION OF LABOR –

              HISTADRUT
      HAMAOF

            

    

    

    (hereinafter:  “the
Histadrut”)

    

    and
THE BLUE SQUARE WORKERS COMMITTEE

    (both
collectively hereinafter: “the Workers Representation”)

    

    
      	
              WHEREAS

            	
              Blue
      Square employs employees; and

            

    

    

    
      	
              WHEREAS

            	
              A
      general collective agreement dated February 15, 1982 applies to Blue
      Square and its employees, which was made between the Central Consumer
      Cooperative Covenant Cooperative Society Ltd. and the Organization of
      Clerks, and which was adopted by Blue Square under a special collective
      agreement date May 28, 1996 (hereinafter: “the General Collective
      Agreement”), and amendments and additions to the General Collective
      Agreement and special collective agreements as have been signed from time
      to time (hereinafter: “the Existing
      Agreements”); and

            

    

    

    
      	
              WHEREAS

            	
              The
      Company is a subsidiary under the full control of Blue Square;
      and

            

    

    

    
      	
              WHEREAS

            	
              An
      agreement was made between Blue Square and the Company in regard to the
      transfer of Blue Square’s assets to the Company;
  and

            

    

    

    
      	
              WHEREAS

            	
              For
      purposes of implementing the agreement for the transfer of assets it was
      agreed that Blue Square would be entitled to transfer Blue Square
      employees – in whole or in part – to being employees of the Company, all
      under the conditions as set forth below;
and

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              WHEREAS

            	
              Blue
      Square and the Workers Representation have agreed on the giving of a
      salary supplement to the employees who are employed and/or who will in the
      future be employed under the Collective
  Agreement;

            

    

    

    Now
therefore it is agreed and stipulated as follows:

    

    
      	
              1.

            	
              The
      preamble to this Agreement constitutes an integral part
      hereof.

            

    

    

    
      Transfer
of employees

    

    

    
      	
              2.

            	
              If
      and to the extent that Blue Square should decide to transfer its employees
      – in whole or in part – to being employees of the Company (hereinafter:
      “the Transferred
      Employees”) the Transferred Employees will move over, on the day to
      be specified by Blue Square for their transfer (hereinafter: “the Day of Transfer”)
      to being employees of the Company, and they will be employees of the
      Company from the Day of Transfer onwards, save and except the employees
      who will be mentioned in a schedule to be sent to the Workers
      Representation.

            

    

    

    
      	
              3.

            	
              The
      Company and the Workers Representation will become parties, commencing
      from the Day of Transfer, to the Existing Agreements in a manner whereby
      the Existing Agreements will apply to the Company and to the Transferred
      Employees and to the remaining parties to this Agreement, to whatever
      extent is necessary, as though such agreements were made from the outset
      between the Company and the Workers Representation, including revisions
      and updates and/or alterations that may be made in the future, from time
      to time.

            

    

    

    
      	
              4.

            	
              The
      seniority of the employees who were transferred to the Company on the Day
      of Transfer will be the same as their seniority at Blue Square immediately
      prior to the Day of Transfer, as appearing in the books of Blue
      Square.

            

    

    

    
      	
              5.

            	
              The
      Company will be responsible to the Transferred Employees for all their
      rights in respect of the period of their employment at Blue Square up to
      the day of transfer, as such rights exist on such day and in accordance
      with the records in the books of Blue Square, and as if the Transferred
      Employees had continued their employment at Blue Square after the Day of
      Transfer (hereinafter: “the Accumulated
      Rights”).  Blue Square will be a guarantor to the
      Transferred Employees in respect of the Accumulated Rights, and by its
      signing this Agreement it confirms its aforesaid
  guarantee.

            

    

    

    
      	
              6.

            	
              Nothing
      in this Agreement shall adversely affect the rights of any of the
      employees of Blue Square who perform their work in the scope of a personal
      contract nor will this Agreement add rights for any of them in excess of
      what is stated in the aforesaid personal
  contracts.

            

    

    

    
      	
              7.

            	
              A
      list of the Existing Agreements is attached to this Agreement as an
      integral part hereof and is marked “A”.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      Salary
increment

    

    

    
      	
              8.

            	
              The
      employees will be given a salary increment at a rate of 4% on the basic
      salary (hereinafter: “the
      Salary Increment”).

            

    

    
      	
              9.

            	
              The
      Salary Increment will be given to each employee after he has completed or
      in the future completes 24 months of his employment, and will be paid to
      each employee commencing from the 25th
      month of his employment onwards.

            

    

    

    
      	
              10.

            	
              The
      Salary Increment will be paid commencing from the salary for the month of
      April 2009.

            

    

    

    
      	
              11.

            	
              The
      salary tables will be updated accordingly, and will be in force commencing
      from April 1, 2009.  The updated salary tables are attached to
      this special collective agreement as Appendix “B” and constitute an
      integral part hereof.

            

    

    

    
      	
              12.

            	
              It
      is agreed by the parties that the Salary Increment will not be taken into
      account for purposes of calculating the topping-up of a minimum wage
      within the meaning thereof under the Minimum Wage Law, 5747-1987, and
      accordingly the salary element known by the name of “ranking increment”
      will not be reduced and/or will not be affected upon payment of the Salary
      Increment or upon updating of the minimum if and to the extent that it is
      updated up until March 31, 2010.

            

    

    

    
      	
              13.

            	
              In
      addition, no other salary increments which are paid to the employees will
      be affected upon payment of the Salary Increment in accordance with this
      Agreement, but it is clarified that nothing in the foregoing shall prevent
      Blue Square and/or the Company from updating the other salary increments
      in the future upon a change occurring in the circumstances of the
      employment of the employee, as is customary at present at Blue Square
      and/or in accordance with the Existing
  Agreements.

            

    

    

    
      	
              14.

            	
              It
      is clarified and agreed that the Salary Increment will constitute salary
      for all intents and purposes and it will be taken into account for
      purposes of calculating value of an hour for the purpose of payment of
      incentive salary, seniority, special standby and split, and for purposes
      of social payment contributions, and any other contribution customarily
      made with respect to the combined
salary.

            

    

    

    
      	
              15.

            	
              For
      the avoidance of doubt it is expressly clarified that the Salary Increment
      will be paid only to employees who are employed under the collective
      agreement and it is not the Company’s intention to make it applicable to
      employees who are signatories to personal
  contracts.

            

    

    

    
      	
              16.

            	
              The
      Workers Representation declares that the Salary Increment given pursuant
      to this Agreement constitutes full compliance with all their claims for a
      salary increment for the next two years commencing April 1, 2009, in the
      course of which the Workers Representation undertakes to maintain
      industrial peace at Blue Square and/or at the Company on matters regulated
      by this Agreement.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              17.

            	
              All
      the collective agreements, the collective arrangements which are practiced
      and which apply to the parties at the date of signing of this special
      Collective Agreement remain in force and will continue to apply subject to
      the changes in this Agreement.

            

    

    

    
      	
              18.

            	
              The
      parties agree to register this Agreement as a collective agreement in
      accordance with the Collective Agreements Law,
  5717-1957.

            

    

    

    
      
        
          
            
              
                
                  
                    	
                            /s/ David
      Wiessman, Zeev Vurembrand

                          	 	
                            /s/ Reuven Perry

                          
	
                            Blue
      Square – Israel Ltd.

                          	 	
                            New
      General Federation of Labor –

                          
	 
      	 	
                            Histadrut
      Hamaof

                          
	 
      	 	 
      
	
                            /s/
      David Wiessman, Zeev Vurembrand

                          	 	
                            /s/ Eyal
      Eli

                          
	
                            Blue
      Square Chain

                          	 	
                            Blue
      Square Workers Committee

                          
	
                            Properties
      & Investments Ltd.

                          	 	 
      
	
                             

                          	 	
                            Eyal
      Eli

                          
	
                             

                          	 	
                            Chairman
      of Workers
CommitteeUnassociated Document

    

    Exhibit
4.38

    
       

      [Unofficial
English translation]

    

    SALE OF SHARES
AGREEMENT

    

    Made
and entered into at Tel Aviv on the 3rd day of August
2008

    

    
      	
              Between 

            	
              TOYCORE
      LTD., Pvte. Co. 511413916

              
                MR.
      AVNER KATZ, I.D. 057807315

                MR.
      DORON YANAI, I.D. 022206262

                MR.
      RONEN LEVY, I.D. 059739573

                AVI KATZ MARKETING LTD., Pvte.
      Co. 511675662

                (hereinafter:
      “Katz
      Marketing”)

                LEVY
      R.S. MANAGEMENT AND INVESTMENT LTD.,

                Pvte. Co. 514032291
      (hereinafter: “Levy
      Management”)

                (hereinafter
      jointly and severally and with joint guarantee:

                “Katz” or “the
      Sellers”)

              

            

    

     

    
      	
              And

            	
              BLUE
      SQUARE – ISRAEL LTD.

            

    

    Publ. Co.
52-004284-7

    (hereinafter:
“Blue Square” or “the Purchaser”)

    

    
      	
              And

            	
              BEE GROUP RETAIL LTD.
      (by its previous name – Kfar Hashashuim Central Warehouse Ltd.) Pvte. Co.
      511884900

              
                (hereinafter:
      “Bee Group” or
      “the
      Company”)

              

            

    

    
      
      

    

    

    
      	
              WHEREAS:

            	
              At
      the date of signing of this Agreement Blue Square holds 22,800 ordinary
      shares of NIS 1 par value each and 200 preference A shares and 1,000
      preference B shares, constituting 60% of the issued and paid-up share
      capital of the Company, and the individual parties who make up the
      Sellers, Toycore Ltd., Avner Katz, Doron Yanai, Ronen Levy and Mr. Shmuel
      Katz hold 15,200 ordinary shares of NIS 1 par value each and 800
      preference A shares, constituting 40% of the issued share capital of the
      Company, each in accordance with the details set forth in Appendix
      A1 to this Agreement; and

            

    

    

    
      	
              WHEREAS:

            	
              Katz
      Marketing and Levy Management declare and confirm that on June 25, 2008
      they entered into a legally-binding agreement with Mr. Shmuel Katz,
      pursuant to which they purchased (in equal shares) from Mr. Shmuel Katz
      all the shares of the Company held by Mr. Shmuel Katz (hereinafter: “Shmuel Katz Shares”),
      in a manner whereby on the date of closing, Katz Marketing and Levy
      Management will be the owners of the Shmuel Katz Shares and entitled to
      transfer same to the Purchaser, and Mr. Shmuel Katz has undertaken and
      confirmed directly to the Purchaser, at the foot of this Agreement, that
      he sold the Shmuel Katz Shares to Katz Marketing and to Levy Management,
      in a manner whereby on the date of closing Katz Marketing and Levy
      Management will be the owners of the Shmuel Katz Shares and entitled to
      transfer same to the Purchaser, subject to payment of an amount of NIS
      1,030,000 to Mercantile Discount Bank Ltd.;
and

            

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    
      	
              WHEREAS:

            	
              On
      February 15, 2005 the shareholders in the Company entered into a sale of
      shares agreement which inter alia regulates
      the relationship between the shareholders in the Company (hereinafter:
      “the Sale of Shares
      Agreement”); and

            

    

    

    
      	
              WHEREAS:

            	
              On
      April 16, 2007, simultaneous with Blue Square entering into an agreement
      for the purchase of additional shares in the Company from Toycore Ltd.
      (hereinafter: “Toycore”), the
      shareholders in the Company entered into a shareholders’ agreement, which
      alters some of the provisions of the Sale of Shares Agreement
      (hereinafter: “the
      Shareholders Agreement”);
and

            

    

    

    
      	
              WHEREAS:

            	
              The
      Sellers wish to sell to Blue Square the shares sold, as hereinafter
      defined, which constitute 25% of the issued and paid-up share capital of
      the Company held by them, and Blue Square wishes to purchase the sold
      shares from the Sellers; and

            

    

    

    
      	
              WHEREAS:

            	
              The
      parties are desirous of regulating a right to purchase and a right to sell
      in relation to the remainder of the Sellers’ shares in the Company, as
      hereinafter defined, which constitute 15% of the issued and paid-up share
      capital of the Company; and

            

    

    

    
      	
              WHEREAS:

            	
              The
      parties wish to regulate all the terms and conditions of the transaction
      and the relationship between them, all in accordance with and subject to
      what is set forth below in this
Agreement;

            

    

    

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

    

    1.         Preamble and
headings

    

    
      	
               
      

            	
              1.1

            	
              The
      preamble to this Agreement and the appendices to the Agreement constitute
      an integral part of the Agreement.

            

    

    

    
      	
               
      

            	
              1.2

            	
              The
      headings to clauses have been inserted solely for the convenience of
      reading and shall not be used in the interpretation of the
      Agreement.

            

    

    

    
      	
               
      

            	
              1.3

            	
              In
      this Agreement the following terms will have the meanings set opposite
      them, unless otherwise expressly
stated:

            

    

    
      

      
        	 
      	
                “Ordinary
      shares”

              	
                -

              	
                Ordinary
      shares of NIS 1 par value of the Company.

              
	 
      	 
      	 
      	 
      
	 
      	
                “Preference
      A shares”

              	
                -

              	
                Shares
      of NIS 1 par value of the Company to which rights are attached to receive
      an additional dividend, as specified in Clause 10 of the Sale of Shares
      Agreement.

              

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      

      
        
          
            
              	 
      	
                      “Preference
      B shares”

                    	
                      -

                    	
                      Shares
      of NIS 1 par value of the Company having rights identical to the ordinary
      shares, as specified in Clause 10 of the Sale of Shares
      Agreement.

                    
	 
      	 
      	 
      	 
      
	 
      	
                      “The
      Sold Shares”

                    	
                      -

                    	
                      9,354
      ordinary shares and 650 preference A shares, constituting 25% of the
      issued and paid-up share capital of the Company, which are held by some of
      the Sellers (each according to the details set forth in Appendix
      A2 to this Agreement).

                    
	 
      	 
      	 
      	 
      
	 
      	
                      “The
      remaining shares”

                    	
                      -

                    	
                      5996
      ordinary shares (including 150 preference A shares that on the date of
      closing will become ordinary shares), constituting 15% of the issued and
      paid-up share capital of the Company, which are held by some of the
      Sellers (as described in Appendix
      A3 to this Agreement).

                    
	 
      	 
      	 
      	 
      
	 
      	
                      “The
      Company”

                    	
                      -

                    	
                      Bee
      Group Retail  Ltd.

                    
	 
      	 
      	 
      	 
      
	 
      	
                      “The
      Sellers’ shares”

                    	
                      -

                    	
                      15,200
      ordinary shares and 800 preference A shares (which include all the Shares
      Sold and the Remaining Shares including the Shares of Shmuel Katz),
      constituting 40% of the issued and paid-up share capital of the Company
      (each proportionately as described in Appendix
      A1 to this
      Agreement).

                    
	 
      	 
      	 
      	 
      
	 
      	
                      “Toycore”

                    	
                      -

                    	
                      Toycore
      Ltd.

                    
	 
      	 
      	 
      	 
      
	 
      	
                      “Subsidiaries”

                    	
                      -

                    	
                      The
      private subsidiaries and the public company
  subsidiaries.

                    
	 
      	 
      	 
      	 
      
	 
      	
                      “Private
      subsidiaries”

                    	
                      -

                    	
                      Kfar
      Hashashuim Marketing Ltd.; Kfar Hashashuim Chain of Toy Stores Ltd.; Yevu
      International Ltd.; Sheshet Chain of Household Utensil Stores Ltd.; Dr.
      Baby Ltd.; Doctor Baby Marketing & Distribution 888
    Ltd.

                    
	 
      	 
      	 
      	 
      
	 
      	
                      “Public
      company subsidiaries”

                    	
                      -

                    	
                      Vardinon
      and Na’aman

                    
	 
      	 
      	 
      	 
      
	 
      	
                      “Vardinon”

                    	
                      -

                    	
                      Vardinon
      Textile Ltd.

                    
	 
      	 
      	 
      	 
      
	 
      	
                      “Na’aman”

                    	
                      -

                    	
                      Na’aman
      Porcelain Ltd.

                    

            

          

        

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      
        
          
            	 
      	
                    “The
      financial statements”

                  	
                    -

                  	
                    Audited
      consolidated financial statements as at December 31, 2007 and reviewed
      consolidated financial statements as at March 31, 2008, which are attached
      to this Agreement as Appendices
      B1-B2.

                  
	 
      	 
      	 
      	 
      
	 
      	
                    “Call
      option”

                  	
                    -

                  	
                    The
      option conferred on the Purchaser to purchase the Remaining Shares, as
      stated in Clause 8.1 below.

                  
	 
      	 
      	 
      	 
      
	 
      	
                    “Put
      option”

                  	
                    -

                  	
                    The
      option conferred on the Sellers to sell the Remaining Shares, as stated in
      Clause 8.2 below.

                  
	 
      	 
      	 
      	 
      
	 
      	
                    “The
      Trustee”

                  	
                    -

                  	
                    Adv.
      David Amid, of the S. Biran & Co. Law Office

                  
	 
      	 
      	 
      	 
      
	 
      	
                    “Shareholders
      in Toycore”

                  	
                    -

                  	
                    The
      shareholders mentioned Appendix
      C to this
Agreement.

                  

          

        

      

    

     

    
      	
              2.

            	
              Declarations and
      undertakings by the Sellers

               

              
                The
      Sellers hereby confirm, declare and undertake, jointly and severally, the
      following declarations and undertakings, as at the date of signing of this
      Agreement and as at the date of closing, in the knowledge that it is,
      inter alia, in
      reliance on these declarations, undertakings and representations that the
      Purchaser is entering into this Agreement with
  them:

              

            

    

    

    
      	
               
      

            	
              2.1

            	
              That
      they are the sole owners and holders of the Shares Sold as defined above,
      subject to the contents of Clause 2.2 below in relation to the Shmuel Katz
      Shares, and that the Sellers’ shares are fully paid-up and are free and
      clear of any debt, attachment, encumbrance or any other third party
      rights, apart from a charge in favor of Mercantile Discount Bank Ltd.
      (hereinafter: “Mercantile
      Bank”), which will be removed on the date of closing, in accordance
      with letters from Mercantile Bank dated July 21, 2008 which are attached
      to this Agreement as Appendices
      D1-D2.

            

    

    

    
      	
               
      

            	
              2.2

            	
              That
      Katz Marketing and Levy Management entered into a legally-binding
      agreement on June 25, 2008 with Mr. Shmuel Katz, pursuant to which they
      (in equal shares) purchased the Shmuel Katz Shares from Mr. Shmuel Katz,
      in a manner whereby on the date of closing Katz Marketing and Levy
      Management will be the owners of the Shmuel Katz Shares where same are
      free and clear of any debt, attachment, encumbrance or any other third
      party right, and they will be entitled to transfer same to the Purchasers
      subject to payment of an amount of NIS 1,030,000 to Mercantile Discount
      Bank Ltd., in accordance with a letter from Mercantile Bank dated July 21,
      2008, which is attached to this Agreement as Appendix
      D3.

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              2.3

            	
              That
      the Shareholders in Toycore, as defined above, are the sole shareholders
      in Toycore, and apart from them there is no person or entity who has
      rights to acquire or receive shares or other securities in
      Toycore.

            

    

    

    
      	
               
      

            	
              2.4

            	
              That
      the sole shareholders in the Subsidiaries, the authorized share capital of
      the subsidiaries and the division of shareholdings in the subsidiaries are
      as set forth in Appendix
      E, and apart from the aforesaid shareholders there is no person or
      entity who has rights to acquire or receive shares or other securities in
      any of the Subsidiaries, except as particularized in that
      appendix.

            

    

    

    
      	
               
      

            	
              2.5

            	
              That
      they are directors and/or officers and/or employees of the Company and/or
      the Subsidiaries as described in Appendix
      F to this Agreement.

            

    

    

    
      	
               
      

            	
              2.6

            	
              That
      there is no restriction or prohibition or impediment or condition or
      demand for approval or consent, whether at law or by agreement or in any
      other manner, on or for purposes of (as the case may be) their entering
      into this Agreement and performance of all their obligations pursuant
      hereto, including the sale and transfer of the Shares Sold to the
      Purchaser.  Included in this, the Sellers declare, confirm and
      undertake that by their signing this Agreement they waive all their rights
      of whatsoever nature vis-à-vis one another
      (including a right of first refusal and a tag-along right as mentioned in
      Clause 9 of the Sale of Shares Agreement), in connection with the sale and
      transfer to the Purchaser of the Shares
Sold.

            

    

    

    
      	
               
      

            	
              2.7

            	
              That
      Blue Square has no obligation to refer any offer of whatsoever nature to
      any of them as a precondition for the implementation of this Sale
      Agreement and/or as a consequence of its contracting with them under this
      Agreement, and that by their signature to this Agreement they waive any
      right, to the extent that such right is conferred on them according to any
      law or agreement, in connection with the receipt of such offer (including
      pursuant to Clause 9 of the Sale of Shares
  Agreement).

            

    

    

    
      	
               
      

            	
              2.8

            	
              That
      they are not a party to an agreement, arrangement or understanding of any
      sort (including a founders agreement, voting agreements and so forth),
      verbal or in writing as between them, save for the Sale of Shares
      Agreement and the Shareholders Agreement as defined above, and that they
      are not a party to an agreement with any third party and are not a party
      to any obligation to any third party, in connection with the Sellers’
      Shares and/or their holdings in the Company, except in relation to the
      Shmuel Katz Shares as described in the preamble to this Agreement, and no
      person or entity has rights to acquire or receive shares or other
      securities in the Company.

            

    

    

    
      	
               
      

            	
              2.9

            	
              That
      Toycore’s entering into this Agreement has been duly approved by the board
      of directors and the general meeting of Toycore, and this Agreement has
      been duly signed by Toycore through persons authorized to bind it by their
      signature and is binding on it according to the provisions
      hereof.

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    
      	
            	
              2.10

            	
              That
      their obligations to Blue Square pursuant to a side letter to the Sale of
      Shares Agreement dated February 15, 2005 which is attached to this
      Agreement as Appendix
      G, will continue to remain in force unconditionally, and that the
      signing of this Agreement by the parties shall not derogate from and/or
      reduce and/or lessen the guarantee and/or the aforesaid
      obligations.

            

    

    

    
      	
            	
              2.11

            	
              That
      the guarantee of the individual parties who make up the Sellers, Avner
      Katz, Ronen Levy and Doron Yanai, for the obligations of Toycore in
      accordance with the Sale of Shares Agreement, which is attached to this
      Agreement as Appendix
      H, will continue to remain in force unconditionally, and that the
      fact of the parties signing this Agreement shall not derogate from and/or
      reduce and/or lessen the guarantee and the aforesaid
      obligations.

            

    

    

    
      	
            	
              2.12

            	
              The
      Financial Statements are full and correct and reflect, according to
      accepted accounting principles and rules (which have been applied
      consistently in relation to the statements that preceded them) the
      business condition of the Company and the state of business of the
      subsidiaries and their business results, their assets, liabilities and the
      changes in their equity capital and in their cash flows for the reported
      periods and/or the periods included therein,
  respectively.

            

    

    

    
      	
            	
              2.13

            	
              That
      since the date of the Financial Statements and up to the date of signing
      of this Agreement, no event has occurred which has affected or which is
      likely to have a materially adverse effect on the Company and/or the
      subsidiaries and/or their business results and/or the state of their
      assets and/or their liabilities and/or the activities of the Company
      and/or the Subsidiaries, and no transactions have been entered into which
      are not within the scope of the ordinary course of business of the Company
      and/or the Subsidiaries, save and except events and/or transactions in
      respect of which full and detailed disclosure was made by the board of
      directors of the Company or the Subsidiaries, as the case may be, or in
      respect of which full disclosure has been made to the chairman of the
      Company’s board of directors.

            

    

    

    
      	
            	
              2.14

            	
              That
      they are not aware of any event or circumstances likely to have a
      materially adverse effect on the Company and/or the subsidiaries and/or
      their business results and/or the state of their assets and/or their
      liabilities and/or on the activities of the Company and/or the
      Subsidiaries, apart from those matters that were reported to the board of
      directors of the Company or the Subsidiaries, as the case may be, all
      which were reported to the chairman of the Company’s board of
      directors.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              2.15

            	
              To
      the best of the knowledge of the Company and/or any of the Subsidiaries,
      no material agreement has been breached to which they are bound, including
      franchise agreements and that no demand and/or claim has been received in
      respect of any material breach of an agreement of the Company and/or any
      of the Subsidiaries which did not receive expression in the Financial
      Statements, and that no person and/or entity has any grounds or cause of
      action for a demand and/or allegation and/or claim in connection with any
      material breach of agreement as aforesaid of the Company and/or the
      subsidiaries.

            

    

    

    
      
        	
              	
                2.16

              	
                All
      the agreements, arrangements, accords and understandings, whether verbal
      or in writing, between the Company and/or any of the Subsidiaries, on the
      one hand, and any of the Sellers or a corporation in which the Sellers are
      shareholders and/or a family relative of the Sellers, are as set forth in
      Appendix
      I to this Agreement and a copy thereof is attached to this Appendix
      I.  For the avoidance of doubt it is clarified that the
      agreements mentioned in this Appendix
      I above, include all the payments made by the Company and/or any of
      the Subsidiaries to any of the Sellers and/or a corporation in which the
      Sellers are shareholders and/or a family relative of any of the Sellers,
      in respect of services and/or labor of whatsoever nature which are
      provided to the Company by such Seller and/or corporation controlled by a
      Seller and/or his family relative.

              
	 	 	 
	 	 	
                The
      Sellers declare and confirm that as at the date of signing of this
      Agreement they have received everything due to them from the Company
      and/or from the Subsidiaries and/or they and/or a corporation in which
      they are shareholders and/or a family relative of any of them do not have
      any allegation and/or claim of whatsoever nature against the Company
      and/or the Subsidiaries, directly and/or indirectly, except amounts to
      which they are entitled in accordance with the agreements mentioned in
      Appendix
      I in respect of the period from the date of signing of this
      Agreement and up to the date of termination of the contractual arrangement
      under the aforesaid
agreements.

              

      

    

    

    
      	
            	
              2.17

            	
              That
      all the material information, agreements and documents of the Company are
      as set forth in Appendix
      J and a full copy thereof is kept at the Company’s offices, and
      that apart from what is stated in Appendix
      J, the Sellers have no material information required for the
      continued management of the Company’s affairs which are not to be found in
      clear form in writing in the documents kept at the Company’s
      offices.

            

    

    

    
      
        	
                3.

              	
                Declarations by the
      Purchaser

              
	 	 
	 	
                The
      Purchaser hereby declares to the Sellers
that:

              

      

    

     

    
      	
               
      

            	
              3.1

            	
              Subject
      to the fulfillment of all the conditions precedent, there is no
      restriction and/or prohibition and/or impediment according to the
      Purchaser’s founding documents and/or according to an agreement or any law
      in regard to its entering into this Agreement and performing its
      obligations pursuant hereto.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              3.2

            	
              It
      possesses the financial ability and monetary means which enable it to
      abide by all its obligations under this
  Agreement.

            

    

    

    
      	
               
      

            	
              3.3

            	
              Subject
      to the correctness of the Sellers’ declarations and representations and
      fulfillment of the Sellers’ obligations under this Agreement, it is buying
      the Sellers’ Shares in their current condition as
  is.

            

    

    

    
      	
              4.

            	
              The sale
      transaction

            

    

    

    
      	
               
      

            	
              4.1

            	
              On
      the date of closing and subject to the fulfillment of all the conditions
      precedent, the Sellers will sell and transfer the Shares Sold to the
      Purchaser, and the Purchaser will buy and accept the Sold Shares from the
      Sellers, where same are free and clear of any debt, attachment,
      encumbrance or any third party
right.

            

    

    

    
      	
               
      

            	
              4.2

            	
              In
      consideration for the Shares Sold and fulfillment of the Sellers’
      remaining obligations pursuant to this Agreement, the Purchaser will pay
      the Sellers an aggregate amount of NIS 35,400,000 (in words: thirty-five
      million four hundred thousand new shekels) (hereinafter: “the Purchase Price”),
      in a division between the Sellers as
follows:

            

    

    

    
      	
               
      

            	
              4.2.1

            	
              To
      Mr. Avner Katz, a sum of NIS 5,969,179 (in words: five million nine
      hundred and sixty-nine thousand one hundred and seventy-nine new
      shekels).

            

    

    

    
      	
               
      

            	
              4.2.2

            	
              To
      Mr. Doron Yanai, a sum of NIS 1,218,173 (in words: one million two hundred
      and eighteen thousand one hundred and seventy-three new
      shekels).

            

    

    

    
      	
               
      

            	
              4.2.3

            	
              To
      Mr. Ronen Levy, a sum of NIS 6,972,648 (in words: six million nine hundred
      and seventy-two thousand six hundred and forty-eight new
      shekels).

            

    

    

    
      
        	
                 
      

              	
                4.2.4

              	
                To
      Toycore a sum of NIS 21,240,000 (in words: twenty-one million two hundred
      and forty thousand new
shekels).

              

      

    

    
       

      The
Sellers confirm that the division of the Purchase Price between them as set
forth above is in accordance with their instructions and their consent, and none
of them has or will have an allegation and/or demand and/or claim against Blue
Square in respect of the division of the Purchase Price between the individual
parties who make up the Sellers as set forth above in this
Agreement.

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              4.3

            	
              The
      Sellers hereby instruct the Purchaser first to transfer any amount of the
      Purchase Price to which they are entitled to Mercantile Bank for purposes
      of removing the encumbrance over the Shares, in accordance with the
      amounts as will be demanded by Mercantile Bank in accordance with
      Mercantile Bank’s letters dated July 21, 2008 (Appendices
      D1-D2 to this Agreement and any update thereof) and the balance
      which remains after payment to Mercantile Bank to transfer to the
      Purchasers [sic – Sellers].  In addition and without derogating
      from the foregoing, Avner Katz and Ronen Levy hereby instruct the
      Purchaser to transfer additional amounts out of the Purchase Price to
      which they are entitled as aforesaid directly to Mercantile Bank for
      purposes of removing an encumbrance over the Shmuel Katz Shares, all as
      will be demanded by Mercantile Bank in accordance with a letter dated July
      21, 2008, Appendix
      D3 to this Agreement and any update thereof (in an equal division
      between Avner Katz and Ronen Levy).

            

    

    

    
      	
               
      

            	
              4.4

            	
              For
      the avoidance of doubt the Sellers confirm that the Purchase Price as
      defined above is final and absolute and it is not linked to the index
      and/or to any other linkage
mechanism.

            

    

    

    
      	
               
      

            	
              4.5

            	
              If
      the Company should declare a dividend where the effective date for the
      entitlement thereto falls after the date of signing of this Agreement and
      up to the date of closing, the Purchase Price will be adjusted in a manner
      whereby an amount equivalent to the amount of the cash dividend that has
      been declared in respect of the Shares Sold plus linkage differentials
      commencing from the date of payment of any dividend and up to the date of
      closing, shall be deducted from the Purchase
  Price.

            

    

    

    
      
        	
                5.

              	
                Interim
      period

              
	 	 
	 	
                The
      Sellers in their capacity as shareholders in the Company and/or in the
      subsidiaries, and/or as directors of the Company and/or of the
      Subsidiaries, and/or as officers of the Company and/or the Subsidiaries,
      and/or as employees of the Company and/or of the Subsidiaries, undertake
      that during the period from the date of signing of this Agreement and up
      to the date of closing of the transaction (hereinafter: “the Interim Period”), and without
      derogating from the provisions of this Agreement above and
      below:

              

      

    

    

    
      
        	
                 
      

              	
                5.1

              	
                The
      Company and the Subsidiaries will continue to run their activities in the
      ordinary course of business.  Any operation that constitutes a
      deviation from the ordinary course of business, or a material transaction,
      or a change in the managements and/or senior employees of the Company
      and/or of any of the Subsidiaries, shall be subject to Blue Square’s prior
      written approval.

              
	 	 	 
	 	 	
                The
      foregoing in relation to the Public Company Subsidiaries shall apply
      subject to the provisions of any
law.

              

      

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              5.2

            	
              The
      conditions of employment of the Sellers and/or their family relatives in
      the Company and/or in the Subsidiaries will not be altered and agreements
      between the Company and/or any of the Subsidiaries, on the one hand, and
      corporations in which the Sellers are shareholders, on the other hand,
      shall not be altered, and no new agreements and/or undertakings shall be
      signed as between any of the Sellers and/or a family relative and/or a
      corporation in which the Sellers are shareholders, on the one hand, and
      the Company and/or any of the Subsidiaries, except in accordance with the
      provisions of this Agreement.

            

    

    

    
      	
               
      

            	
              5.3

            	
              The
      Company and the Sellers shall transfer to the Purchaser all the
      information, the data and the documents and the material particulars
      required by the Purchaser in order to verify that no adverse material
      changes have taken place in the activities and/or assets and/or
      liabilities of the Company and/or the Subsidiaries in the period between
      the date of signing of this Agreement and the date of
    closing.

            

    

    

    
      	
              6.

            	
              Conditions
      precedent

            

    

    

    
      	
               
      

            	
              6.1

            	
              This
      Agreement and its implementation are subject to and contingent upon the
      fulfillment of all the following cumulative conditions (hereinafter: “the Conditions
      Precedent”):

            

    

    

    
      	
               
      

            	
              6.1.1

            	
              Obtaining
      the approval of the Purchaser’s board of directors to its entering into
      this Agreement.

            

    

    

    
      	
               
      

            	
              6.1.2

            	
              Obtaining
      confirmation from an attorney that all the approvals have been received
      that are required from the competent organs in Toycore to entering into
      this Agreement and to the implementation hereof (including a general
      meeting and board of directors), and including with regard to the transfer
      of the Shares Sold to the
Purchaser.

            

    

    

    
      	
               
      

            	
              6.1.3

            	
              Receiving
      confirmation from an attorney that all the necessary approvals have been
      obtained from the competent organs in Katz Marketing and Levy Management
      for purchase of the Shmuel Katz Shares and to their entering into this
      Agreement and to the implementation hereof (including a general meeting
      and board of directors), and including with regard to the transfer of the
      Shares Sold and the grant of the Call
Option.

            

    

    

    
      	
               
      

            	
              6.1.4

            	
              Receiving
      approval of the board of directors and the general meeting of the Company
      to the transfer of the Shmuel Katz Shares to Katz Marketing and to Levy
      Management.

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              6.1.5

            	
              Receiving
      the approval of the board of directors and the general meeting of the
      Company to the transfer of the Sellers’ Shares and to the remaining
      provisions of this Agreement.

            

    

    

    
      	
               
      

            	
              6.1.6

            	
              Receiving
      approval from the Controller of Restrictive Trade Practices to the
      satisfaction of the parties and unconditionally or subject to conditions
      agreed to by the parties, each party in its sole discretion, or receiving
      an exemption from the Controller of Restrictive Trade
      Practices.

            

    

    

    
      	
               
      

            	
              6.1.7

            	
              Receiving
      a confirmation that is in force from Mercantile Discount Bank Ltd.
      regarding removal of the encumbrance which applies to the Sellers’ Shares
      and including the Shmuel Katz
Shares.

            

    

    

    
      	
               
      

            	
              6.1.8

            	
              No
      adverse material change has occurred in the businesses of the Company
      and/or the subsidiaries and/or in their assets and/or in their activities
      and/or in their liabilities, which the Purchaser has not pardoned after
      the fact of same existing being brought to its notice by the
      Sellers.  For these purposes “adverse material change” means –
      an event or development which had the parties known about immediately
      prior to the signing of this Agreement would have caused a reduction in
      the price of the transaction to an extent of at least
  15%.

            

    

    

    
      	
               
      

            	
              6.1.9

            	
              Receipt
      of any additional approval that may be required according to any law for
      implementation of the transaction that is the subject of this
      Agreement.

            

    

    

    
      	
               
      

            	
              6.2

            	
              If
      all the Conditions Precedent or any of them is not fulfilled within 90
      days from the date of signing of this Agreement (hereinafter: “Period for Fulfillment of the
      Conditions”), each of the parties will be entitled, by way of
      written notice, to extend the Period for Fulfillment of the Conditions for
      an additional period of 30 days (hereinafter: “the Deferred Date for
      Fulfillment of the Conditions”).  It is agreed that if
      the Conditions Precedent are not fulfilled up to the Deferred Date for
      Fulfillment of the Conditions, it will not be possible to extend the
      period a second time and this Agreement will be null and void, without
      this being deemed to be a breach hereof and without any party having a
      right to any remedy as a consequence
thereof.

            

    

    

    
      	
              7.

            	
              Closing of the
      transaction

            

    

    

    
      	
               
      

            	
              7.1

            	
              The
      date of closing will fall on a date to be arranged between the parties
      after all the Conditions Precedent required for the closing of the
      transaction as set forth in Clause 6.1 above have been fulfilled, and not
      later than 7 days after the fulfillment thereof (hereinafter: “the Date of
      Closing”).

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              7.2

            	
              On
      the Date of Closing, after the parties have verified that all the
      Conditions Precedent have been fulfilled and all the approvals required
      according to any law have been received, the parties will perform all the
      following acts at one and the same
time:

            

    

    

    
      	
               
      

            	
              7.2.1

            	
              Approval
      by the board of directors of the Company and the general meeting approving
      the transfer of the Shmuel Katz Shares to Katz Marketing and to Levy
      Management in the texts attached hereto as Appendices
      K1-K2 shall be exhibited.

            

    

    

    
      	
               
      

            	
              7.2.2

            	
              The
      parties deliver notices to the Company regarding the conversion of all the
      preference shares held by them (Preference A and Preference B) into
      ordinary shares, in the text attached to this Agreement as Appendices
      L1-L2.

            

    

    

    
      	
               
      

            	
              7.2.3

            	
              Approval
      by the board of directors of the Company and the general meeting approving
      the transfer of the Sellers’ Shares to the Purchaser and to the remaining
      provisions of this Agreement, in the texts attached to this Agreement as
      Appendices
      K1-K2 shall be exhibited.

            

    

    

    
      	
               
      

            	
              7.2.4

            	
              The
      Sellers shall deliver to the Purchaser confirmations from an attorney as
      referred to in Clauses 6.1.2 and 6.1.3 above, in the texts attached to
      this Agreement as Appendices
      M1-M3.

            

    

    

    
      	
               
      

            	
              7.2.5

            	
              The
      Sellers shall deliver to the Purchaser an approval in the text of Appendix
      N pursuant to which the Sellers have confirmed that no adverse
      material change has taken place in the businesses of the Company and/or
      the Subsidiaries and/or in their assets and/or activities and/or their
      liabilities, save for a change which the Purchaser has pardoned after the
      fact of its existence having been brought to the Purchaser’s notice by the
      Sellers, and that the Sellers’ representations are correct as at the Date
      of Closing as if given on that
date.

            

    

    

    
      	
               
      

            	
              7.2.6

            	
              Each
      of the Sellers who serves as a director of the Company and/or of the
      Subsidiaries and Mr. Yitzhak Laufer will deliver letters of resignation to
      Blue Square resigning from their position as directors in the Company and
      in each of the Subsidiaries in which they hold office as directors, with
      effect from the Date of Closing, in the texts attached hereto as Appendices
      O1-O5, effective as at the Date of
  Closing.

            

    

    

    
      	
               
      

            	
              7.2.7

            	
              The
      Purchaser will deliver a notice to the Company and to the private company
      subsidiaries regarding the appointment of directors on its behalf and if
      necessary, minutes will be drawn up of the board of directors or a general
      meeting with respect to such
appointment.

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              7.2.8

            	
              All
      the documents required according to law for removal of the charge in favor
      of Mercantile Bank from the Shares Sold, including the Shmuel Katz Shares
      and including the share certificates if same are in the bank’s possession,
      will be delivered to the Purchaser by Mercantile
  Bank.

            

    

    

    
      	
               
      

            	
              7.2.9

            	
              An
      amendment to the Sale of Shares Agreement and the Shareholders Agreement,
      as particularized in Clause 10
      of this Agreement will come into
force.

            

    

    

    
      	
               
      

            	
              7.2.10

            	
              A
      general meeting will be held of the shares of the Company as well as a
      meeting of the board of directors of the Company, in the scope of which
      the Company’s Articles will be replaced by articles in the text of Appendix
      P to this Agreement (in this framework the rights attaching to each
      share will be equalized in a manner whereby each share will have the
      rights conferred on an ordinary share, and class meetings will be held for
      such purpose or in the alternative irrevocable notices will be delivered
      to the Company by the Sellers stating that they wish to convert Preference
      A Shares into ordinary shares).

            

    

    

    
      	
               
      

            	
              7.2.11

            	
              The
      employment agreements of the Sellers will be amended or will be terminated
      as shall be agreed between the
parties.

            

    

    

    
      	
               
      

            	
              7.2.12

            	
              Mr.
      Shmuel Katz will sign deeds of transfer of the Shmuel Katz Shares in favor
      of Katz Marketing and Levy Management and shall deliver the share
      certificates in his possession.

            

    

    

    
      	
               
      

            	
              7.2.13

            	
              The
      parties will sign share transfer deeds pursuant to which the Shares Sold
      are transferred from the Sellers to the Purchaser, and share certificates
      will be issued to the Purchaser in respect of the Shares Sold and share
      certificates to the Sellers in respect of the Remaining
      Shares.

            

    

    

    
      	
               
      

            	
              7.2.14

            	
              Each
      of the Sellers shall sign documents of charge of the Remaining Shares held
      by each of them in favor of Blue Square, and shall deliver to the Trustee
      the share certificate in respect of the Remaining Shares together with
      deeds of transfer of the Remaining Shares to Blue Square, signed by
      him.

            

    

    

    
      	
               
      

            	
              7.2.15

            	
              The
      parties will sign the trust agreement which is attached to this Agreement
      as Appendix
      Q.

            

    

    

    
      	
               
      

            	
              7.2.16

            	
              Each
      of the Sellers shall deliver to Blue Square an irrevocable power of
      attorney in the text of Appendices
      R1-R5 to this Agreement, empowering Blue Square to vote at the
      general meetings of the Company on the strength of the Remaining Shares,
      in its sole discretion and without any necessity for obtaining approval
      from any of the Sellers, and to act with respect to the Shares as an owner
      acts.

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              7.2.17

            	
              The
      Purchaser will pay each of the Sellers his part of the consideration as
      set forth in Clause 4.2 above (less the amounts which require to be
      transferred to Mercantile Bank for purposes of removing the charge
      mentioned in Clause 4.3 above), by way of a bank check or by bank transfer
      to a bank account the details of which the relevant Seller will furnish to
      the Purchaser not later than 3 (three) business days before the Date of
      Closing.

            

    

    

    
      	
               
      

            	
              7.1.18

            	
              The
      parties will sign reports to the Registrar of Companies and will sign any
      additional document that may be required for purposes of the
      implementation and completion of the sale transaction which is the subject
      of this Agreement.

            

    

    

    
      	
               
      

            	
              7.3

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

            

    

    

    
      	
            	
               
      

            	
              For
      the avoidance of doubt it is clarified that the Purchaser’s obligation to
      complete the transaction is only to the extent that all the Sellers
      complete the transaction.  The failure of any of the Sellers to
      complete the transaction will give the Purchaser the right to refrain from
      completing the transaction vis-à-vis all the
      Sellers.

            

    

    

    
      	
              8.

            	
              Call option / Put
      option / public flotation of the
Company

            

    

    

    
      	
               
      

            	
              8.1

            	
              Call
      option

            

    

    

    
      	
               
      

            	
              8.1.1

            	
              Commencing
      from the Date of Closing and for a period of 5 years, the Purchaser will
      be entitled to buy all the remaining Shares held by the Sellers, for an
      overall consideration for all the Remaining Shares held by all the Sellers
      collectively in a sum of NIS 21,240,000 (twenty-one million two hundred
      and forty thousand new shekels), plus 7.5% per annum on this amount
      (without linkage differentials), commencing from the Date of Closing and
      up to the date of payment in respect of the Remaining Shares (hereinafter
      respectively: “the Call
      Option; “the Exercise Price”; “the Call Option
      Period”).  The share of each of the Sellers in the
      Exercise Price is as follows:

            

    

    

    
      	
               
      

            	
              8.1.1.1

            	
              Mr.
      Avner Katz, a sum of NIS 4,650,283 (in words: four million six hundred and
      fifty thousand two hundred and eighty-three new
  shekels).

            

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              8.1.1.2

            	
              Mr.
      Doron Yanai, a sum of NIS 2,321,888 (in words: two million three hundred
      and twenty-one thousand eight hundred and eighty-eight new
      shekels).

            

    

    

    
      	
               
      

            	
              8.1.1.3

            	
              Mr.
      Ronen Levy, a sum of NIS 3,646,501 (in words: three million six hundred
      and forty-six thousand five hundred and one new
  shekels).

            

    

    

    
      	
               
      

            	
              8.1.1.4

            	
              Katz
      Marketing, a sum of NIS 5,310,664 (in words: five million three hundred
      and ten thousand six hundred and sixty-four new
  shekels).

            

    

    

    
      	
               
      

            	
              8.1.1.5

            	
              Levy
      Management, a sum of NIS 5,310,664 (in words: five million three hundred
      and ten thousand six hundred and sixty-four new
  shekels).

            

    

    

    
      
        	 	 	
                The
      Sellers confirm that the division of the Exercise Price between them as
      set forth above is in accordance with their instructions and their
      agreement, and none of them has or will have an allegation and/or demand
      and/or claim against Blue Square in respect of the division of the
      Exercise Price between the individual parties who make up the Sellers as
      specified above in this Agreement.

              
	 	 	 
	
                 
      

              	
                8.1.2

              	
                If
      the Company should declare a dividend the effective date for the
      entitlement thereto falls after the date of signing of this Agreement and
      before the date of payment in respect of the exercise of the option, the
      Exercise Price will be adjusted in a manner whereby an amount equivalent
      to the amount of the cash dividend that was declared plus a rate of 7.5%
      per annum commencing from the date of payment of each dividend and up to
      the date of payment in respect of the Remaining Shares shall be deducted
      from the Exercise Price.

              

      

    

    

    
      	
               
      

            	
              8.2

            	
              Put
      option

            

    

    

    
      	
               
      

            	
              8.2.1

            	
              As
      long as the Purchaser has not exercised the Call Option, the Sellers
      collectively will be entitled, from the end of 24 months from the Date of
      Closing and for a period of 30 days, to sell the Purchaser all the
      Remaining Shares (and not less) which are held by each of them
      (hereinafter respectively: “the Put Option”; “the Put Option
      Period”), in consideration for the Exercise Price as defined in
      Clause 8.1.1 above, which will be divided between the Sellers in the
      manner stated in Clause 8.1.1
above.

            

    

    

    
      	
               
      

            	
              8.2.2

            	
              The
      provisions of Clause 8.1.2 regarding adjustment of the Exercise Price will
      also apply to the Sellers' Option.

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    
      
        	
                 
      

              	
                8.2.3

              	
                The
      Sellers will be entitled to charge the Put Option solely upon the
      fulfillment of all the following
conditions:

              

        	 	 	
                 

              
	 	
                8.2.3.1

              	
                A
      charge of the Put Option shall only be to a banking corporation
      (hereinafter: “the
      Bank”).

              
	 	 	 
	 	
                8.2.3.2

              	
                The
      conditions of the charge shall be acceptable to the Purchaser in advance
      and in writing, in a manner whereby there will be no prejudice to the
      Purchaser’s rights pursuant to this Agreement, including its right to
      exercise the Call Option in full, and no restrictions and/or obligations
      will be imposed on it in excess of what is stipulated in this
      Agreement.

              

      

    

    

    
      	
               
      

            	
              8.3

            	
              Notice of
      Exercise

            

    

    

    
      	
               
      

            	
              8.3.1

            	
              If
      the Purchaser decides to exercise the Call Option, it shall give written
      notice of exercise to Avner Katz, in the text of Appendix
      S to this Agreement.  All the Sellers hereby confirm that
      the giving of notice of exercise to Mr. Avner Katz shall be deemed to be
      the giving of notice to each and every one of them.  For the
      avoidance of doubt, the Sellers hereby confirm that no decision and/or
      additional approval is required from any of them for purposes of
      exercising the Call Option on the date of delivery of the notice of
      exercise.

            

    

    

    
      	
               
      

            	
              8.3.2

            	
              Should
      the Sellers decide to exercise the Put Option, they shall deliver a
      written notice of exercise to the Purchaser signed by all the Sellers,
      together with a certification from an attorney in the text Appendix
      T stating that resolutions have been passed by all the competent
      organs of Katz Marketing and of Levy Management (including of a general
      meeting and board of directors in each of the aforesaid companies) and all
      the approvals required according to law with regard to exercise of the
      Sellers’ option, together with copies of the
      resolution.  Notwithstanding the foregoing, all the Sellers
      hereby expressly empower Mr. Avner Katz and authorize him irrevocably to
      sign in their name and stead in his sole discretion on the notice of
      exercise, and they confirm that they are aware that the Purchaser’s rights
      are dependent on such power of attorney aforesaid and therefore it cannot
      be revoked.

            

    

    

    
      	
               
      

            	
              8.3.3

            	
              For
      the avoidance of doubt it is clarified that the time of delivery of the
      notice of exercise will constitute the date of exercise for purposes of
      counting the times specified for the option
  periods.

            

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              8.4

            	
              Completion of exercise
      of the option

            

    

    

    
      	
               
      

            	
              8.4.1

            	
              Where
      notice of exercise of the Call Option or the Put Option has been
      delivered, as stated in Clause 7.3 above, the parties will meet on the
      30th
      day from the date of delivery of the notice of exercise (unless otherwise
      agreed between the parties) at the offices of Blue Square for purposes of
      completing and finalizing the exercise of the option (hereinafter: “Date of Completion of Exercise
      of the Option”).

            

    

    

    
      	
               
      

            	
              8.4.2

            	
              On
      the Date of Completion of Exercise of the Option the Sellers will deliver
      and will sell to the Purchaser all the Remaining Shares, where same are
      free and clear of any debt, attachment, encumbrance and/or any other third
      party right (save for the charge in favor of Blue Square), against and in
      consideration for the Exercise
Price.

            

    

    

    
      	
               
      

            	
              8.4.3

            	
              On
      the Date of Completion of Exercise of the Option, the parties will sign
      all the documents and the reports required for purposes of implementing a
      transfer of the Remaining Shares from the Sellers to the Purchaser, and
      included in this shall perform all the following
  acts:

            

    

    

    
      	
               
      

            	
              8.4.3.1

            	
              The
      Purchaser shall pay each of the Sellers his or its share of the Exercise
      Price as set forth in Clause 8.1.1 above (subject to adjustments), by way
      of a bank check or by bank transfer to a bank account the details of which
      the relevant Seller will furnish to the Purchaser not later than 3 (three)
      business days before the Date of Completion of Exercise of the
      Option.

            

    

    

    
      	
               
      

            	
              8.4.3.2

            	
              The
      Trustee shall transfer the deeds of transfer of the Remaining Shares and
      the share certificates in respect of the Remaining Shares which were
      lodged with him, to Blue Square.

            

    

    

    
      	
               
      

            	
              8.4.3.3

            	
              The
      parties will sign reports to the Registrar of Companies and any additional
      document that may be required for implementation and completion of
      exercise of the option.

            

    

    

    
      	
               
      

            	
              8.5

            	
              Public
      offering

            

    

    

    
      	
               
      

            	
              8.5.1

            	
              The
      parties wish to promote a process for offering the Company’s Shares to the
      public, and the Sellers undertake to cooperate and to sign any document
      that may be required for purposes of the furtherance of a process for such
      public offering and the completion
thereof.

            

    

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    

    
      
        	
              	
                8.5.2

              	
                If
      in a period of up to the end of 36 months from the Date of Closing, the
      Company’s Shares are offered to the public and are listed for trading on a
      stock exchange in Israel (hereinafter: “Date of the Public
      Offering”), then the following provisions will
    apply:

              

      

    

    

    
      	
               
      

            	
              8.5.2.1

            	
              The
      Purchaser will exercise the Call Option not later than 3 days after the
      commencement of trading in the Company’s Shares, and the Remaining Shares
      will be sold to the Purchaser in consideration for the Exercise Price
      which is adjusted for the public offering as defined below.  In
      such case, a closing will take place in accordance with the provisions of
      Clause 8.4 above, respectively.

            

    

    

    
      	
               
      

            	
              8.5.2.2

            	
              In
      such case, the price in respect of the Remaining Shares will be a sum
      equivalent to 15% of the value of the Company according to which the
      Company’s Shares were issued to the public, less: (a) the expenses of the
      public offering (b) investments in capital made after the Date of Closing
      (hereinafter: “the
      Exercise Price Adjusted for the Public
  Offering”).

            

    

    

    
      
        	
              	
                8.5.3

              	
                If
      at the Date of the Public Offering the Call Option or the Put Option has
      already been exercised, the Sellers will be entitled to the difference (if
      there is such) between the Exercise Price Adjusted for the Public Offering
      and the Exercise Price that was paid on the Date of Completion of the
      Exercise of the Option plus 7.5% per annum on the Exercise Price that was
      paid, commencing from the date of payment of the Exercise
      Price.

              

      

    

    

    
      
        	
              	
                8.5.4

              	
                For
      the avoidance of doubt it is clarified that in the event of a public
      offering after the Date of the Public Offering the provisions of Clauses
      8.5.2 and 8.5.3 above will not apply.  It is further clarified,
      for the avoidance of doubt, that the provisions of Clauses 8.5.2. and
      8.5.3, if they apply, will apply only to the remaining
    Shares.

              

      

    

    

    
      	
               
      

            	
              8.6

            	
              Charge over the
      remaining Shares and deposit thereof with a
  trustee

            

    

    

    
      
        	
              	
                8.6.1

              	
                The
      Sellers undertake that commencing from the date of signing of this
      Agreement and up to the end of the Option period, the Purchaser will leave
      the Remaining Shares free and clear of any debt, attachment, encumbrance
      or any other third party right, and that they will not contract with any
      third party or amongst themselves, verbally or in writing, for any
      undertaking in connection with the sale of the Remaining Shares in the
      Company or in connection
therewith.

              

      

    

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              8.6.2

            	
              It
      is agreed that with effect from the Date of Closing the Remaining Shares
      are charged by way of a first-ranking fixed charge in favor of Blue
      Square, and that on the Date of Closing each of the Sellers will sign all
      the documents and forms required for purposes of charging the Remaining
      Shares in favor of Blue Square as
aforesaid.

            

    

    

    
      	
               
      

            	
              8.6.3

            	
              In
      addition, on the Date of Closing the Sellers shall deposit the Remaining
      Shares and share transfer deeds signed by them with the
      Trustee.  At the Date of Closing the parties will sign the trust
      agreement which is attached to this Agreement as Appendix
      Q.

            

    

    

    
      	
               
      

            	
              8.6.4

            	
              Blue
      Square undertakes that not later than 21 days from the end of the Call
      Option Period, if the Call Option has not been exercised as stated in this
      Clause 8, it will deliver to the Sellers all the documents necessary for
      release of the charge that was imposed over the Remaining Shares, and
      return of the share transfer deeds and the powers of attorney that were
      lodged with it.

            

    

    

    
      
        	
                9.

              	
                Continuation of the
      transaction

              

      

    

    

    
      	
               
      

            	
              9.1

            	
              All
      the agreements between the Sellers and the Company as described in Appendix
      I to this Agreement will continue to apply until otherwise agreed
      between the Purchaser and any of the
Sellers.

            

    

    

    
      	
               
      

            	
              9.2

            	
              Without
      derogating from the contents of Clause 9.1 above and/or any of the
      Sellers’ obligations under this Agreement, the Sellers undertake that upon
      termination of their contractual arrangement with the Company they will
      carry out a properly-arranged handing over briefing process to the extent
      that this is requested by the Company and/or the Purchaser.  In
      addition the Sellers undertake to continue to assist the Purchaser in all
      matters connected with the management of the Company and/or its
      businesses, to whatever extent may be requested, even after termination of
      their contractual arrangement with the Company, and all to whatever extent
      is reasonably possible in the circumstances of the matter and against
      customary consideration as shall be agreed
upon.

            

    

    

    
      	
              10.

            	
              Amendment to
      shareholders agreements

            

    

    

    It is
agreed by the parties that the provisions of the Sale of Shares Agreement and/or
the Shareholders Agreement will remain unchanged, except for the clauses
mentioned below which will be cancelled and/or amended with effect from the Date
of Closing (subject to the closing of the transaction), as follows:

    

    
      	
            	
              10.1

            	
              Clauses
      7.2 to 7.10, 8.1 to 8.13, 8.15 of the Sale of Shares Agreement will be
      cancelled.

            

    

    

    
      	
            	
              10.2

            	
              Clause
      3 of the Shareholders Agreement will be
  cancelled.

            

    

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

    
      	
            	
              10.3

            	
              Clause
      9.7 of the Sale of Shares Agreement – will not apply during the Call
      Option Period and will revert to being applicable only commencing from the
      end of the Call Option Period (if up to that time the Call Option or the
      Put Option has not been exercised).  In addition, the clause
      will only apply to the Sellers in a manner whereby the Purchaser is not
      bound by the right of refusal for the sale of its Shares, and only the
      Sellers will be bound by a right of refusal in connection with the
      Remaining Shares.  It is clarified, for the avoidance of doubt,
      that nothing in the foregoing shall derogate from the Sellers’ obligations
      to refrain from any action in connection with the Remaining Shares during
      the Call Option Period, including as described in Clause 8.6.1
      above.

            

    

    

    
      	
            	
              10.4

            	
              Clause
      10 of the Sale of Shares Agreement – will be
  cancelled.

            

    

    

    
      	
            	
              10.5

            	
              Clause
      11.1 of the original agreement – will be
  cancelled.

            

    

    

    
      	
              11.

            	
              Non-competition
      

            

    

    

    
      	
            	
              11.1

            	
              Each
      of the Sellers and of the shareholders in Toycore hereby undertakes that
      so long as he is an employee of the Company (or the Subsidiaries) and/or
      officers in the Company (or the Subsidiaries) and/or shareholders in the
      Company (or in the Subsidiaries), directly and/or indirectly and for the
      period of restriction specified below commencing from the date on which he
      ceases to be an employee, officer or shareholder as aforesaid, whichever
      is the later (hereinafter: “the Period of
      Restriction”), any activity, business or matter of his, directly or
      indirectly, including through a first degree family relative, whether as a
      shareholder or an employee or as an officer, consultant, manager or in any
      other way in Israel in connection with the fields of activity of the
      Company and/or the Subsidiaries, shall be carried out solely through the
      Company and under all circumstances the Sellers will refrain from
      competing with the Company and/or with any of the Subsidiaries, directly
      or indirectly, throughout the entire Period of
  Restriction.

            

    

    

    
      The Period of Restriction – in
relation to the individual parties making up the Seller Avner Katz, Ronen Levy,
Toycore, Avi Katz Marketing Ltd., Levy R.S. Management and Investment Ltd.,
Sigal Levy – 4 years.  In relation to the individual parties who make
up the Seller Doron Yanai, Yanai A.D. Management and Investment Ltd., Olga Yanai
– 3 years.  With respect to Mr. Shmuel Katz – two years as stated in
the confirmation by Mr. Shmuel Katz at the foot of this
Agreement.

    

    

    
      	
            	
              11.2

            	
              Throughout
      the Period of Restriction the Sellers undertake not to employ, whether
      directly or indirectly (including by way of giving consultancy or
      management services) any of the employees of the Company or the
      Subsidiaries (the employees of the Company or the Subsidiaries as at the
      date of signing of this Agreement), even if such employees are dismissed
      and/or resign from their employment in the Company or in the Subsidiaries,
      as the case may be, except in a case in which the Company’s prior written
      approval has been received to the employing of such
    employee.

            

    

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

    
      	
            	
              11.3

            	
              It
      is agreed that the non-fulfillment of the provisions of this Clause 11 by
      any of the Sellers constitute a material breach of the Agreement which
      entitles Blue Square to agreed damages in a sum of NIS 2 million, without
      this derogating from any other remedy available to Blue Square according
      to any law and/or agreement.

            

    

    

    
      	
              12.

            	
              Taxation

            

    

    

    Each
party will bear the taxes that are imposed on it according to any
law.

    

    
      	
              13.

            	
              Insurance

            

    

    

    The
Purchaser confirms that the Sellers who have served, are serving and/or who will
serve up to the Date of Closing as officers as defined in the Companies Law, in
the Company and/or in any of the subsidiaries (hereinafter: “the Officers in the Company”)
are insured within the scope of an officers liability insurance policy which was
effected by the Purchaser and which covers liability of officers in the
Purchaser and in its Subsidiaries, and inter alia covers the
liability of Officers in the Company in respect of claims that are first
instituted during the insurance period against any of them (“claims made”) in
connection with acts performed by them in good faith in the scope of their
duties, during the period commencing from the date of the Company becoming a
subsidiary of the Purchaser and up to the Date of Closing (“the Insurance
Policy”).

    

    The
Purchaser undertakes, subject to the provisions of any law, that the Officers in
the Company will continue to be insured within the scope of the aforesaid
Insurance Policy for a period of 7 years from the date of the closing in a
manner whereby the extent of the insurance cover of liability of Officers in the
Company will not be less – during the aforesaid 7 years – than the insurance
cover of all the officers whose liability is insured under the aforesaid
Insurance Policy.

    

    
      	
              14.

            	
              Indemnity

            

    

    

    
      	
            	
              14.1

            	
              The
      Sellers undertake to indemnify the Purchaser and to hold it harmless in
      respect of any damage and/or loss and/or shortage and/or failure and/or
      expenses that may be incurred by it and/or by the Company, as the case may
      be, due to any of the following
reasons:

            

    

    

    
      
        	
              	
                14.1.1

              	
                Any
      breach of one of the representations and/or declarations of the Sellers
      pursuant to this Agreement.

              

      

    

    

    
      
        	
              	
                14.1.2

              	
                Any
      breach of the Sellers’ obligation under this
  Agreement.

              

      

    

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    

    
      	
            	
              14.2

            	
              The
      parties agree that the Purchaser’s right to indemnity as stated in Clause
      14.1 above will only apply if the total damage exceeds a sum equivalent to
      NIS 500,000 where such amount is linked to the Consumer Price Index from
      the date of signing of this Agreement (hereinafter: “the Floor”) and is
      limited to a sum of 60% of the Purchase Price where this amount is linked
      to the Consumer Price Index from the date of signing of this Agreement
      (hereinafter: “the
      Ceiling”).  Notwithstanding the foregoing, it is agreed
      that the Purchaser’s right to indemnity is not limited to the Ceiling in
      the case of a demand for indemnity in connection with: (a) a breach of the
      representations and/or declarations of the Sellers with regard to the full
      and clean ownership of the Sellers’ Shares (b) a breach of the undertaking
      for non-competition in accordance with this
  Agreement.

            

    

    

    
      It is
further agreed that the Purchaser’s right to indemnity as aforesaid is limited
to a demand for indemnity being lodged not later than the end of 36 months from
the Date of Closing, except demands for indemnity in connection with (a) a
breach of the representations and/or declarations of the Sellers in relation to
the full and clean ownership of the Sellers’ Shares (b) a breach of the
non-competition undertaking pursuant to this Agreement, which are not limited as
to time.

    

    

    
      	
            	
              14.3

            	
              The
      parties further agree that only on matters connected with a breach of
      Clauses 11.1 and/or 11.2 above will the obligation for indemnity apply to
      an individual or to individuals who make up the Sellers who breached the
      provisions of the aforesaid clauses only and not jointly and severally to
      all the Sellers.  With the exception of the foregoing in this
      sub-clause above, it is clarified that the obligation for indemnity
      applies to all the Sellers jointly and
  severally.

            

    

    

    
      	
              15.

            	
              Arbitration

            

    

    

    If
differences of opinion should arise between the parties on any matter connected
with this Agreement and/or anything arising from it, the following will
apply:

    

    
      	
            	
              15.1

            	
              The
      parties will endeavor to resolve the differences of opinion between them
      by consensus agreement.

            

    

    

    
      	
            	
              15.2

            	
              If
      the parties are unsuccessful in resolving the differences of opinion by
      agreement, the differences of opinion will be referred for the decision of
      an arbitrator.

            

    

    

    
      	
            	
              15.3

            	
              The
      arbitrator shall be an attorney on whom the parties
  agree.

            

    

    

    
      	
            	
              15.4

            	
              In
      the absence of agreement regarding the identity of the arbitrator within 7
      days from the date on which one party referred to the other, the
      arbitrator will be appointed by the president of the Israel
      bar.

            

    

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    

    
      	
            	
              15.5

            	
              The
      arbitrator will be bound by the substantive law and the provisions of this
      Agreement, but will not be subject to the rules of evidence and of civil
      procedure.  The arbitrator shall give reasons for his
      decision.

            

    

    

    
      	
            	
              15.6

            	
              The
      parties agree that the award that will be given by the arbitrator will be
      subject to appeal before the appeal instance of the Institute for
      Commercial Arbitration in accordance with the rules of arbitration before
      a single arbitrator, who will be appointed by the chairman of the
      Institute for Commercial Arbitration.  The parties agree that if
      an appeal is lodged and an award is given by the appeal instance, such
      decision will be “an arbitration award”, within the meaning thereof under
      the Arbitration Law, 5728-1968, in lieu of the award given by the
      arbitrator in the trial hearing
arbitration.

            

    

    

    
      	
              16.

            	
              Miscellaneous

            

    

    

    
      	
            	
              16.1

            	
              Each
      party to the Agreement shall bear its own expenses, all the taxes, levies
      and the compulsory payments imposed on it, if imposed, in connection with
      its entering into this Agreement.

            

    

    

    
      	
            	
              16.2

            	
              Each
      party is represented by an attorney on its behalf, and each party shall
      bear the fees of its attorney.  The Sellers confirm that they
      have agreed to the Company and Blue Square being represented by the law
      office of S. Biran & Co.

            

    

    

    
      	
            	
              16.3

            	
              The
      parties to this Agreement undertake to sign any document and to perform
      any act that may be required in order to implement this Agreement and to
      give it force.

            

    

    

    
      	
            	
              16.4

            	
              This
      Agreement fully and comprehensively expresses what has been agreed by the
      parties in regard to the matters and subjects dealt with by this
      Agreement.

            

    

    

    
      The
provisions of the Sale of Shares Agreement and the Shareholders Agreement will
continue to apply to the parties to the extent that they have not been expressly
altered by this Agreement.  If there is any conflict between the
provisions of this Agreement and the Sale of Shares Agreement or the
Shareholders Agreement, the provisions of this Agreement shall
prevail.

    

    

    
      	
            	
              16.5

            	
              Any
      alteration and any amendment to this Agreement shall be binding on the
      parties only if drawn up in writing and signed by all the
      parties.

            

    

    

    
      	
            	
              16.6

            	
              The
      addresses of the parties for purposes of this Agreement are the addresses
      set forth at the head of the Agreement, or any other address of which one
      of the parties may give notice in writing to the other.  It is
      expressly agreed that notice to Avner Katz constitutes notice to all the
      Sellers.

            

    

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    
      	
            	
              16.7

            	
              The
      sending of a notice by registered mail or the delivery thereof by hand
      shall be deemed to be adequate for the giving of notices.  Any
      notice sent by one of the parties to the other by registered mail shall be
      deemed to have been received 72 hours after its delivery to the post
      office.  A notice delivered by hand shall be deemed to have been
      received on the same day on which it was delivered.  A notice
      sent via facsimile, with confirmation of receipt, shall be deemed to have
      been received on the day on which it was
  transmitted.

            

    

    

    In
witness of the foregoing the parties have hereunto signed:

    
      

      
        
          	
                  /s/ Zeev Vurembrand
      and  Ilan Kliger

                	 
      	
                  /s/ Avner Katz and Zeev
    Vurembrand

                	 
      	
                  /s/ Ronen
      Levy

                	 
      	
                  /s/ Doron Yanai

                
	
                  Blue
      Square – Israel Ltd.

                	 
      	
                  Bee
      Group Retail Ltd.

                	 
      	
                  Toycore
      Ltd.

                	 
      	
                  Doron
      Yanai

                
	 	 	 	 	 	 	 
	
                  /s/ Avner Katz

                	 
      	
                  /s/ Avner Katz

                	 
      	
                  /s/ Ronen Levy

                	 
      	
                  /s/ Ronen Levy

                
	
                  Avner
      Katz

                	 
      	
                  Avi
      Katz Marketing Ltd.

                	 
      	
                  Ronen
      Levy

                	 
      	
                  Levy
      R.S. Marketing & Management Ltd.

                
	 
      	 
      	 
      	 
      	 
      	 
      	
                  Levy
      R.S. Management & Investment
Ltd.

                

        

      

      

      Certification by
Attorney

      

      I the
undersigned, Hagit
Shrem Adv., hereby certify that this Agreement and the appendices hereto
was signed by Avner Katz and by Zeev Vurembrand, who are authorized to sign in
the name and on behalf of Bee Group Retail Ltd., and that the signatures of the
abovementioned persons where same appear together with the rubber stamp of the
corporation, are binding on it in all respects.

      

      
        
          
            
              	
                      July 31, 2008

                    	
                      /s/ Hagit Shrem,
Advocate

                    
	
                      Date

                    	
                      Lic.
      No. 20015

                    

            

          

        

      

      

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      I the
undersigned, Hagit
Shrem Adv., hereby certify that this Agreement and the appendices hereto
was signed by ______________ and by ______________, who are authorized to sign
in the name and on behalf of Toycore Ltd., and that the signatures of the
abovementioned persons where same appear together with the rubber stamp of the
corporation, are binding on it in all respects.

      

      
        
          	
                  ______________

                	
                  /s/ Hagit Shrem,
Advocate

                
	
                  Date

                	
                  Lic.
      No. 20015

                

        

      

      

      I the
undersigned, Hagit
Shrem Adv., hereby certify that this Agreement and the appendices hereto
was signed by Avner Katz and by ______________, who are authorized to sign in
the name and on behalf of Avi Katz Marketing Ltd., and that the signatures of
the abovementioned persons where same appear together with the rubber stamp of
the corporation, are binding on it in all respects.

      

      
        
          	
                  ______________

                	
                  /s/ Hagit Shrem,
Advocate

                
	
                  Date

                	
                  Lic.
      No. 20015

                

        

      

      

      I the
undersigned, ______________  Adv., hereby certify that this Agreement
and the appendices hereto was signed by Ronen Levy and by __________, who are
authorized to sign in the name and on behalf of Levy R.S. Marketing &
Management Ltd., and that the signatures of the abovementioned persons where
same appear together with the rubber stamp of the corporation, are binding on it
in all respects.

      

      
        
          
            
              	
                      July 31, 2008

                    	
                      /s/ Hagit Shrem,
Advocate

                    
	
                      Date

                    	
                      Lic.
      No. 20015

                    

            

          

        

      

      

      I the
undersigned, Irit
Philip Adv., hereby certify that this Agreement and the appendices hereto
was signed by Zeev Vurembrand and by Ilan Kliger, who are authorized to sign in
the name and on behalf of Blue Square Israel Ltd., and that the signatures of
the abovementioned persons where same appear together with the rubber stamp of
the corporation, are binding on it in all respects.

      

      
        
          
            
              	
                      August 3, 2008

                    	
                      /s/ Irit Philip,
Advocate

                    
	
                      Date

                    	
                      Lic.
      No. 19173

                    

            

          

        

      

      

      I the
undersigned, Ehud Bar-Noy Adv., hereby certify that the signature at the foot of
this Agreement is the signature of Avner Katz I.D. 05780735, Ronen Levy I.D.
059739573, Doron Yanai I.D. 022206262, who signed at the foot of this Agreement
before me.

      

      
        
          
            
              	
                      July 31, 2008

                    	
                      /s/ Ehud Bar-Noy,
  Advocate

                    
	
                      Date

                    	
                      Lic.
      No.
12178

                    

            

          

        

      

    

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

     

    Certification by
shareholders of Toycore:

    

    We the
undersigned, the sole shareholders (directly and indirectly) in Toycore Ltd.
(hereinafter: “Toycore”), confirm and
undertake, jointly and severally, to Blue Square Israel Ltd.:

    

    
      	
              1.

            	
              We
      are aware of all the provisions of this Agreement including the
      obligations of Toycore as stipulated in the Agreement, and we undertake to
      act in accordance with all the provisions of this Agreement and/or for the
      implementation hereof and/or for the realization hereof, both directly and
      also through Toycore.

            

    

    

    
      	
              2.

            	
              That
      all the representations, undertakings and declarations of the Sellers in
      the Agreement also apply to each and every one of us, and we are deemed to
      have been a party to the Agreement itself and as part of the Sellers, and
      any breach by any of the Sellers of the provisions of the Agreement shall
      also be deemed to be a breach by us and will entitle the Purchaser to all
      the remedies conferred on it according to the Agreement and to any
      law.

            

    

    

    
      	
              3.

            	
              Without
      derogating from the foregoing, it is expressly clarified that we assume
      the provisions of Clause 11 of the Agreement
      (non-competition).

            

    

     

    In
witness of the foregoing the parties have hereunto signed:

    
      

      
        
          	
                  /s/ Avner Katz

                	 
      	
                  /s/ Ronen Levy

                	 
      	
                  /s/ Doron Yanai

                	 
      
	
                  Avi
      Katz Marketing Ltd.

                	 
      	
                  Levy
      R.S. Management & Investment Ltd.

                	 
      	
                  Yanai
      A.D. Management & Investment Ltd.

                	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
                  /s/ Avner Katz

                	 
      	
                  /s/ Yitzhak Laufer

                	 
      	
                  /s/ Levy Ronen

                	 
      
	
                  Avner
      Katz

                	 
      	
                  Yitzhak
      Laufer

                	 
      	
                  Levi
      Ronen

                	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
                  /s/ Levi Sigal

                	 
      	
                  /s/ Yanai Doron

                	 
      	
                  /s/ Yanni Olga

                	 
      
	
                  Levi
      Sigal

                	 
      	
                  Yanai
      Doron

                	 
      	
                  Yanai
      Olga

                	 
      

        

      

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

      Certification by
Attorney

      

      I the
undersigned, Hagit
Shrem Adv., hereby certify that this Agreement and the appendices hereto
was signed by Avner
Katz and by _____/_____, who are authorized to sign in the name and on
behalf of Avi Katz Marketing Ltd., and that the signatures of the abovementioned
persons where same appear together with the rubber stamp of the corporation, are
binding on it in all respects.

      

      
        
          
            
              	
                      July 31, 2008

                    	
                      /s/ Hagit Shrem,
Advocate

                    
	
                      Date

                    	
                      Lic.
      No. 20015

                    

            

          

        

      

      

      I the
undersigned, Hagit
Shrem Adv., hereby certify that this Agreement and the appendices hereto
was signed by Ronen
Levy and by _____/_____who are authorized to sign in the name and on
behalf of Levi R.S. Investment and Management Ltd., and that the signatures of
the abovementioned persons where same appear together with the rubber stamp of
the corporation, are binding on it in all respects.

      

      
        
          
            
              	
                      July 31, 2008

                    	
                      /s/ Hagit Shrem,
Advocate

                    
	
                      Date

                    	
                      Lic.
      No. 20015

                    

            

          

        

      

      

      I the
undersigned, Hagit
Shrem Adv., hereby certify that this Agreement and the appendices hereto
was signed by Doron
Yanai and by _____/_____ , who are authorized to sign in the name and on
behalf of Yanai A.D. Management & Investment Ltd., and that the signatures
of the abovementioned persons where same appear together with the rubber stamp
of the corporation, are binding on it in all respects.

      

      
        
          
            	
                    July 31, 2008

                  	
                    /s/ Hagit Shrem,
Advocate

                  
	
                    Date

                  	
                    Lic.
      No. 20015

                  

          

        

      

      

      I the
undersigned, Ehud
Bar-Noy Adv., hereby certify that the signature at the foot of this
Agreement is of Avner Katz I.D. 057807315, Yitzhak
Laufer I.D. 031141757, Levy Ronen
I.D. 059739573, Levy Sigal I.D. 27892678, Doron Yanai I.D. 022206262 and Yanai
Golda I.D. 309752400, who signed
at the foot of this Agreement before me.

      

      
        
          
            
              	
                      July 31, 2008

                    	
                      /s/ Ehud Bar-Noy,
  Advocate

                    
	
                      Date

                    	
                      Lic.
      No. 12178

                    

            

          

        

      

    

     

    
      
        
        

      

      
        27

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