Document:

Exhibit 4.5

                                                                  Execution Copy

                      Resale Registration Rights Agreement

                                      among

                        TEVA PHARMACEUTICAL FINANCE B.V.,

                     TEVA PHARMACEUTICAL INDUSTRIES LIMITED,

                              LEHMAN BROTHERS INC.

                                       and

                            SALOMON SMITH BARNEY INC.

                          DATED AS OF NOVEMBER 18, 2002

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     RESALE REGISTRATION RIGHTS AGREEMENT, dated as of November 18, 2002 among
Teva Pharmaceutical Finance B.V., a company organized under the laws of the
Netherlands Antilles (herein referred to as the "Company"), Teva Pharmaceutical
Industries Limited, a Company organized under the laws of Israel (together with
any successor entity, herein referred to as the "Guarantor"), Lehman Brothers
Inc. and Salomon Smith Barney Inc. (collectively, the "Initial Purchasers").

     Pursuant to the Purchase Agreement, dated November 13, 2002, among the
Company, the Guarantor and the Initial Purchasers (the "Purchase Agreement"),
the Initial Purchasers have agreed to purchase from the Company up to
$375,000,000 ($450,000,000 if the Initial Purchasers exercise their purchase
option in full) in aggregate principal amount of the Company's 0.375%
Convertible Senior Debentures due 2022 (the "Debentures"), which Debentures are
to be guaranteed by the Guarantor (the "Guarantor"). The Debentures will be
convertible into fully paid, nonassessable ordinary shares evidenced by American
Depositary Receipts of the Guarantor (the "ADRs") on the terms, and subject to
the conditions, set forth in the Indenture (as defined herein). To induce the
Initial Purchasers to purchase the Debentures and the Guarantees, the Company
has agreed to provide the registration rights set forth in this Agreement
pursuant to Section 3(q) of the Purchase Agreement.

     The parties hereby agree as follows:

     1. Definitions. As used in this Agreement, the following capitalized terms
shall have the following meanings:

     Advice: As defined in Section 4(c)(ii) hereof.

     Additional Amounts: As defined in Section 3(a) hereof.

     ADRs: As defined in the preamble hereto.

     Affiliate: As such term is defined in Rule 405 under the Securities Act.

     Agreement: This Resale Registration Rights Agreement.

     Blue Sky Application: As defined in Section 6(a) hereof.

     Broker-Dealer: Any broker or dealer registered under the Exchange Act.

     Business Day: A day other than a Saturday or Sunday or any federal holiday
in the United States.

     Closing Date: The date of this Agreement.

     Commission: Securities and Exchange Commission.

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     Damages Payment Date: Each Interest Payment Date. For purposes of this
Agreement, if no Debentures are outstanding, "Damages Payment Date" shall mean
each November 15 and May 15.

     Debentures: As defined in the preamble hereto.

     Effectiveness Period: As defined in Section 2(a)(iii) hereof.

     Effectiveness Target Date: As defined in Section 2(a)(ii) hereof.

     Exchange Act: Securities Exchange Act of 1934, as amended.

     Holder: A Person who owns, beneficially or otherwise, Transfer Restricted
Securities.

     Indemnified Holder: As defined in Section 6(a) hereof.

     Indenture: The Indenture, dated as of November 18, 2002, among the Company,
the Guarantor and The Bank of New York, as trustee (the "Trustee"), pursuant to
which the Debentures and the Guarantees are to be issued, as such Indenture is
amended, modified or supplemented from time to time in accordance with the terms
thereof.

     Initial Purchasers: As defined in the preamble hereto.

     Interest Payment Date: As defined in the Indenture.

     Company: As defined in the preamble hereto.

     Majority of Holders: Holders holding 50% in aggregate principal amount of
the Debentures outstanding at the time of determination of the Majority of
Holders; provided, however, that, for purposes of this definition, a holder of
ADRs which constitute Transfer Restricted Securities that were previously issued
upon conversion of Debentures shall be deemed to hold an aggregate principal
amount of Debentures (in addition to the principal amount of Debentures held by
such holder) equal to the product of (x) the number of such ADRs held by such
holder and (y) the prevailing conversion price, such prevailing conversion price
as determined in accordance with Section 12.4 of the Indenture.

     NASD: National Association of Securities Dealers, Inc.

     Person: An individual, partnership, corporation, unincorporated
organization, limited liability company, trust, joint venture or a government or
agency or political subdivision thereof.

     Prospectus: The prospectus included in a Shelf Registration Statement, as
amended or supplemented by any prospectus supplement and by all other amendments

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thereto, including post-effective amendments, and all material incorporated by
reference into such Prospectus.

     Questionnaire Deadline: As defined in Section 2(b) hereof.

     Record Holder: With respect to any Damages Payment Date, each Person who is
a Holder on the record date with respect to the Interest Payment Date on which
such Damages Payment Date shall occur. In the case of a Holder of ADRs issued
upon conversion of the Debentures, "Record Holder" shall mean each Person who is
a Holder of ADRs which constitute Transfer Restricted Securities on the November
1 or May 1 immediately preceding the Damages Payment Date.

     Registration Default: As defined in Section 3(a) hereof.

     Sale Notice: As defined in Section 4(e) hereof.

     Securities Act: Securities Act of 1933, as amended.

     Shelf Filing Deadline: As defined in Section 2(a)(i) hereof.

     Shelf Registration Statement: As defined in Section 2(a)(i) hereof.

     Suspension Period. As defined in Section 4(b)(i) hereof.

     TIA: Trust Indenture Act of 1939, as in effect on the date the Indenture is
qualified under the TIA.

     Transfer Restricted Securities: Each Debenture and each ADR issued upon
conversion of Debentures until the earliest to occur of:

          (i) the date on which such Debenture or such ADRs issued upon
     conversion has been effectively registered under the Securities Act and
     disposed of in accordance with the Shelf Registration Statement;

          (ii) the date on which such Debenture or such ADRs issued upon
     conversion (A) has been transferred in compliance with Rule 144 under the
     Securities Act or (B) may be sold or transferred pursuant to Rule 144 under
     the Securities Act without regard to the volume limitations thereof (or any
     other similar provision then in force); and

          (iii) the date on which such Debenture or such ADRs issued upon
     conversion ceases to be outstanding (whether as a result of redemption,
     repurchase and cancellation, conversion or otherwise).

     Underwritten Registration or Underwritten Offering: A registration in which
securities of the Company are sold to an underwriter for reoffering to the
public;

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provided, however, that such registration or offering shall be made no more than
two times under this Agreement.

     2. Shelf Registration.

     (a) The Company and the Guarantor shall:

          (i) not later than 90 days after the earliest date of original
     issuance of any of the Debentures (the "Shelf Filing Deadline"), cause a
     registration statement to be filed pursuant to Rule 415 under the
     Securities Act (the "Shelf Registration Statement"), which Shelf
     Registration Statement shall provide for resales of all Transfer Restricted
     Securities held by Holders that have provided the information required
     pursuant to the terms of Section 2(b) hereof;

          (ii) use their reasonable efforts to cause the Shelf Registration
     Statement to be declared effective by the Commission as promptly as is
     practicable but in no event later than 180 days after the earliest date of
     original issuance of any of the Debentures (the "Effectiveness Target
     Date"); and

          (iii) use their reasonable efforts to keep the Shelf Registration
     Statement continuously effective, supplemented and amended as required by
     the provisions of Section 4(b) hereof to the extent necessary to ensure
     that: (A) it is available for resales by the Holders of Transfer Restricted
     Securities entitled to the benefit of this Agreement and (B) conforms with
     the requirements of this Agreement and the Securities Act and the rules and
     regulations of the Commission promulgated thereunder as announced from time
     to time, for a period (the "Effectiveness Period") of:

               (1) two years following the last date of original issuance of
          Debentures; or

               (2) such shorter period that will terminate when (x) all of the
          Holders of Transfer Restricted Securities (other than the Company and
          its Affiliates) are able to sell all Transfer Restricted Securities
          without restriction pursuant to the volume limitation provisions of
          Rule 144 under the Securities Act or any successor rule thereto, (y)
          when all Transfer Restricted Securities have ceased to be outstanding
          (whether as a result of redemption, repurchase and cancellation,
          conversion or otherwise) or (z) all Transfer Restricted Securities
          registered under the Shelf Registration Statement have been sold.

     (b) Not less than 30 calendar days prior to the effectiveness of the Shelf
Registration Statement, the Company shall mail the form of questionnaire
attached hereto as Exhibit A to each Holder, and no Holder of Transfer
Restricted Securities may include any of its Transfer Restricted Securities in
the Shelf Registration Statement pursuant to this Agreement

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unless such Holder furnishes to the Company in writing, prior to or on the 20th
Business Day after receipt of a request therefor (the "Questionnaire Deadline"),
such information as the Company may reasonably request for use in connection
with the Shelf Registration Statement or Prospectus or preliminary Prospectus
included therein and in any application to be filed with or under state
securities laws. In connection with all such requests for information from
Holders of Transfer Restricted Securities, the Company shall notify such Holders
of the requirements set forth in the preceding sentence. No Holder of Transfer
Restricted Securities shall be entitled to Additional Amounts pursuant to
Section 3 hereof unless such Holder shall have provided all such reasonably
requested information prior to or on the Questionnaire Deadline. Each Holder as
to which the Shelf Registration Statement is being effected agrees to furnish
promptly to the Company all information required to be disclosed in order to
make information previously furnished to the Company by such Holder not
materially misleading.

     3. Additional Amounts.

     (a) If:

          (i) the Shelf Registration Statement is not filed with the Commission
     prior to or on the Shelf Filing Deadline;

          (ii) the Shelf Registration Statement has not been declared effective
     by the Commission prior to or on the Effectiveness Target Date;

          (iii) subject to the provisions of Section 4(b)(i) hereof, the Shelf
     Registration Statement is filed and declared effective but, during the
     Effectiveness Period, shall thereafter cease to be effective or fail to be
     usable for its intended purpose without being succeeded within five
     Business Days by a post-effective amendment to the Shelf Registration
     Statement or a report filed with the Commission pursuant to Section 13(a),
     13(c), 14 or 15(d) of the Exchange Act that cures such failure and, in the
     case of a post-effective amendment, is itself immediately declared
     effective; or

          (iv) prior to or on the 45th or 60th day, as the case may be, of any
     Suspension Period, such suspension has not been terminated,

(each such event referred to in foregoing clauses (i) through (iv), a
"Registration Default"), the Company hereby agrees to pay the following
additional amounts ("Additional Amounts") with respect to the Transfer
Restricted Securities for which the Holders thereof have provided the
information under the terms of Section 2(b) hereof, from and including the day
following the Registration Default to but excluding the day on which the
Registration Default has been cured:

               (A) in respect of the Debentures, to each holder of Debentures,
          (x) with respect to the first 90-day period during which a
          Registration Default shall have occurred and be continuing, in an
          amount per year equal to an additional 0.25% of the principal amount
          of the Debentures, and (y) with respect to the period commencing on
          the 91st day following the day the

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          Registration Default shall have occurred and be continuing, in an
          amount per year equal to an additional 0.50% of the principal amount
          of the Debentures; provided that in no event shall Additional Amounts
          accrue at a rate per year exceeding 0.50% of the principal amount of
          the Debentures; and

               (B) in respect of any ADRs issued upon conversion of Debentures,
          to each holder of such ADRs, (x) with respect to the first 90-day
          period in which a Registration Default shall have occurred and be
          continuing, in an amount per year equal to 0.25% of the principal
          amount of the Debentures converted into such ADRs, and (y) with
          respect to the period commencing the 91st day following the day the
          Registration Default shall have occurred and be continuing, in an
          amount per year equal to 0.50% of the principal amount of the
          Debentures converted into such ADRs; provided, however, that in no
          event shall Additional Amounts accrue at a rate per year exceeding
          0.50% of the principal amount of the Debentures converted into such
          ADRs.

     (b) All accrued Additional Amounts shall be paid in arrears to Record
Holders by the Company on each Damages Payment Date in the same manner as
interest is payable under the Debentures. Following the cure of all Registration
Defaults relating to any particular Debenture or ADRs issued upon conversion of
Debentures, the accrual of Additional Amounts with respect to such Debenture or
such ADRs shall cease.

     All obligations of the Company or the Guarantor set forth in this Section 3
with respect to any Transfer Restricted Security at the time such security
ceases to be a Transfer Restricted Security shall survive until such time as all
such obligations with respect to such Transfer Restricted Security shall have
been satisfied in full.

     The Additional Amounts set forth above shall be the exclusive remedy
available to the Holders of Transfer Restricted Securities for Registration
Defaults.

     4. Registration Procedures.

     (a) In connection with the Shelf Registration Statement, the Company and
the Guarantor shall comply with all the provisions of Section 4(b) hereof and
shall use its reasonable efforts to effect such registration to permit the sale
of the Transfer Restricted Securities being sold in accordance with the intended
method or methods of distribution thereof, and pursuant thereto, shall as
expeditiously as possible prepare and file with the Commission a Shelf
Registration Statement relating to the registration on any appropriate form
under the Securities Act.

     (b) In connection with the Shelf Registration Statement and any Prospectus
required by this Agreement to permit the sale or resale of Transfer Restricted
Securities, the Company and the Guarantor shall:

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          (i) Subject to any notice by the Company or the Guarantor in
     accordance with this Section 4(b) of the existence of any fact or event of
     the kind described in Section 4(b)(iii)(D), use its reasonable efforts to
     keep the Shelf Registration Statement continuously effective during the
     Effectiveness Period; upon the occurrence of any event that would cause the
     Shelf Registration Statement or the Prospectus contained therein (A) to
     contain a material misstatement or omission or (B) not be effective and
     usable for the resale of Transfer Restricted Securities during the
     Effectiveness Period, the Company shall file promptly an appropriate
     amendment to the Shelf Registration Statement or a report filed with the
     Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange
     Act, in the case of clause (A), correcting any such misstatement or
     omission, and, in the case of either clause (A) or (B), use its reasonable
     efforts to cause such amendment to be declared effective and the Shelf
     Registration Statement and the related Prospectus to become usable for
     their intended purposes as soon as practicable thereafter. Notwithstanding
     the foregoing, the Company may suspend the effectiveness of the Shelf
     Registration Statement by written notice to the Holders for a period not to
     exceed an aggregate of 45 days in any 90-day period (each such period, a
     "Suspension Period") if:

               (x) an event occurs and is continuing as a result of which the
          Shelf Registration Statement would, in the Company's or the
          Guarantor's reasonable judgment, contain an untrue statement of a
          material fact or omit to state a material fact required to be stated
          therein or necessary to make the statements therein not misleading;
          and

               (y) the Company or the Guarantor, as the case may be, reasonably
          determines that the disclosure of such event at such time would have a
          material adverse effect on the business of the Guarantor (and its
          subsidiaries, taken as a whole);

     provided, however, that in the event the disclosure relates to a previously
     undisclosed proposed or pending material business transaction, the
     disclosure of which would impede the Company's or the Guarantor's ability
     to consummate such transaction, the Company may extend a Suspension Period
     from 45 days to 60 days; provided, however, that Suspension Periods shall
     not exceed an aggregate of 90 days in any 360-day period.

          (ii) Except during a Suspension Period, (A) use its reasonable efforts
     to prepare and file with the Commission such amendments and post-effective
     amendments to the Shelf Registration Statement as may be necessary to keep
     the Shelf Registration Statement effective during the Effectiveness Period;
     (B) cause the Prospectus to be supplemented by any required Prospectus
     supplement, and as so supplemented to be filed pursuant to Rule 424 under
     the Securities Act, and to comply fully with the applicable provisions of
     Rules 424 and 430A under the Securities Act in a timely manner; and (C)
     comply with the provisions of the Securities Act with respect to the
     disposition of all securities covered by the Shelf

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     Registration Statement during the applicable period in accordance with the
     intended method or methods of distribution by the sellers thereof set forth
     in the Shelf Registration Statement or supplement to the Prospectus.

          (iii) Advise the underwriter(s), if any, and selling Holders promptly
     (but in any event within five Business Days) and, if requested by such
     Persons, to confirm such advice in writing:

               (A) when the Prospectus or any Prospectus supplement or
          post-effective amendment has been filed, and, with respect to the
          Shelf Registration Statement or any post-effective amendment thereto,
          when the same has become effective,

               (B) of any request by the Commission for amendments to the Shelf
          Registration Statement or amendments or supplements to the Prospectus
          or for additional information relating thereto,

               (C) of the issuance by the Commission of any stop order
          suspending the effectiveness of the Shelf Registration Statement under
          the Securities Act or of the suspension by any state securities
          commission of the qualification of the Transfer Restricted Securities
          for offering or sale in any jurisdiction, or the initiation of any
          proceeding for any of the preceding purposes, or

               (D) except during a Suspension Period, of the existence of any
          fact or the happening of any event, during the Effectiveness Period,
          that makes any statement of a material fact made in the Shelf
          Registration Statement, the Prospectus, any amendment or supplement
          thereto, or any document incorporated by reference therein untrue, or
          that requires the making of any additions to or changes in the Shelf
          Registration Statement or the Prospectus in order to make the
          statements therein not misleading.

          (iv) If at any time the Commission shall issue any stop order
     suspending the effectiveness of the Shelf Registration Statement, or any
     state securities commission or other regulatory authority shall issue an
     order suspending the qualification or exemption from qualification of the
     Transfer Restricted Securities under state securities or Blue Sky laws, use
     its reasonable efforts to obtain the withdrawal or lifting of such order at
     the earliest possible time.

          (v) Furnish to each of the selling Holders upon request by such
     selling Holders and to each of the underwriter(s), if any, before filing
     with the Commission, a copy of the Shelf Registration Statement and copies
     of any Prospectus included therein or any amendments or supplements to the
     Shelf Registration Statement or Prospectus (other than documents
     incorporated by reference after the initial filing of the Shelf
     Registration Statement), which

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     documents will be subject to the review of such Holders and underwriter(s),
     if any, for a period of at least five Business Days, and the Company will
     not file the Shelf Registration Statement or Prospectus or any amendment or
     supplement to the Shelf Registration Statement or Prospectus (other than
     documents incorporated by reference) to which a selling Holder of Transfer
     Restricted Securities covered by the Shelf Registration Statement or the
     underwriter(s), if any, shall reasonably object within five Business Days
     after the receipt thereof. The objection of a selling Holder or
     underwriter, if any, shall be deemed to be reasonable if the Shelf
     Registration Statement, amendment, Prospectus or supplement, as applicable,
     as proposed to be filed, contains a material misstatement or omission.

          (vi) Make available at reasonable times for inspection by one or more
     representatives of the selling Holders, designated in writing by a Majority
     of Holders whose Transfer Restricted Securities are included in the Shelf
     Registration Statement, any underwriter participating in any distribution
     pursuant to the Shelf Registration Statement, and any attorney or
     accountant retained by such selling Holders or any of the underwriter(s),
     all financial and other records, pertinent corporate documents and
     properties of the Guarantor and the Company as shall be reasonably
     necessary to enable them to exercise any applicable due diligence
     responsibilities, and cause the Guarantor and the Company's officers,
     directors, managers and employees to supply all information reasonably
     requested by any such representative or representatives of the selling
     Holders, underwriter, attorney or accountant in connection with the Shelf
     Registration Statement after the filing thereof and before its
     effectiveness; provided, however, that any information designated by the
     Guarantor or the Company as confidential at the time of delivery of such
     information shall be kept confidential by the recipient thereof.

          (vii) If reasonably requested by any selling Holders or the
     underwriter(s), if any, promptly incorporate in the Shelf Registration
     Statement or Prospectus, pursuant to a supplement or post-effective
     amendment if necessary, such information as such selling Holders and
     underwriter(s), if any, may from time to time reasonably request to have
     included therein, including, without limitation: (A) information concerning
     such Holder and the underwriter(s), if any, and the distribution of the
     Transfer Restricted Securities of such Holders or underwriters(s), if any,
     (B) information relating to the "Plan of Distribution" of the Transfer
     Restricted Securities, (C) information with respect to the principal amount
     of Debentures or number of ADRs being sold to such underwriter(s), (D) the
     purchase price being paid therefor and (E) any other terms of the offering
     of the Transfer Restricted Securities to be sold in such offering; and make
     all required filings of such Prospectus supplement or post-effective
     amendment as soon as reasonably practicable after the Company is notified
     of the matters to be incorporated in such Prospectus supplement or
     post-effective amendment.

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          (viii) Furnish to each selling Holder and each of the underwriter(s),
     if any, without charge, at least one copy of the Shelf Registration
     Statement, as first filed with the Commission, and of each amendment
     thereto (and any documents incorporated by reference therein or exhibits
     thereto (or exhibits incorporated in such exhibits by reference) as such
     Person may request).

          (ix) Deliver to each selling Holder and each of the underwriter(s), if
     any, without charge, as many copies of the Prospectus (including each
     preliminary prospectus) and any amendment or supplement thereto as such
     Persons reasonably may request; subject to any notice by the Company in
     accordance with this Section 4(b) of the existence of any fact or event of
     the kind described in Section 4(b)(iii)(D), the Company hereby consents to
     the use of the Prospectus and any amendment or supplement thereto by each
     of the selling Holders and each of the underwriter(s), if any, in
     connection with the offering and the sale of the Transfer Restricted
     Securities covered by the Prospectus or any amendment or supplement
     thereto.

          (x) If an underwriting agreement is entered into and the registration
     is an Underwritten Registration, the Company and the Guarantor shall:

               (A) upon request, furnish to each selling Holder and each
          underwriter, if any, in such substance and scope as they may
          reasonably request and as are customarily made by issuers to
          underwriters in primary underwritten offerings, upon the date of
          closing of any sale of Transfer Restricted Securities in an
          Underwritten Registration:

                    (1) a certificate, dated the date of such closing, signed by
               any Managing Director of the Company confirming, as of the date
               thereof, the matters set forth in Section 5(j) of the Purchase
               Agreement and such other matters as such parties may reasonably
               request;

                    (2) opinions, each dated the date of such closing, of
               counsel to the Company covering such of the matters as are
               customarily covered in legal opinions to underwriters in
               connection with primary underwritten offerings of securities; and

                    (3) customary comfort letters, dated the date of such
               closing, from the independent accountants of the Guarantor (and
               from any other accountants whose report is contained or
               incorporated by reference in the Shelf Registration Statement),
               in the customary form and covering matters of the type
               customarily covered in comfort letters to underwriters in
               connection with primary underwritten offerings of securities;

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               (B) set forth in full in the underwriting agreement, if any,
          indemnification provisions and procedures which provide rights no less
          protective than those set forth in Section 6 hereof with respect to
          all parties to be indemnified; and

               (C) deliver such other documents and certificates as may be
          reasonably requested by such parties to evidence compliance with
          clause (A) above and with any customary conditions contained in the
          underwriting agreement or other agreement entered into by the selling
          Holders pursuant to this clause (x).

          (xi) Before any public offering of Transfer Restricted Securities,
     cooperate to the extent reasonable with the selling Holders, the
     underwriter(s), if any, and their respective counsel in connection with the
     registration and qualification of the Transfer Restricted Securities under
     the securities or Blue Sky laws of such jurisdictions as the selling
     Holders or underwriter(s), if any, may reasonably request and do any and
     all other acts or things necessary or advisable to enable the disposition
     in such jurisdictions of the Transfer Restricted Securities covered by the
     Shelf Registration Statement; provided, however, that neither the Guarantor
     nor the Company shall be required (A) to register or qualify as a foreign
     corporation or a dealer of securities where it is not now so qualified or
     to take any action that would subject it to the service of process in any
     jurisdiction where it is not now so subject or (B) to subject itself to
     taxation in any such jurisdiction if it is not now so subject.

          (xii) Cooperate to the extent reasonable with the selling Holders and
     the underwriter(s), if any, to facilitate the timely preparation and
     delivery of certificates representing Transfer Restricted Securities to be
     sold and not bearing any restrictive legends (unless required by applicable
     securities laws) and enable such Transfer Restricted Securities to be in
     such denominations and registered in such names as the Holders or the
     underwriter(s), if any, may request at least two Business Days before any
     sale of Transfer Restricted Securities made by such underwriter(s).

          (xiii) Use its reasonable efforts to cause the Transfer Restricted
     Securities covered by the Shelf Registration Statement to be registered
     with or approved by such other U.S. governmental agencies or authorities as
     may be necessary to enable the seller or sellers thereof or the
     underwriter(s), if any, to consummate the disposition of such Transfer
     Restricted Securities.

          (xiv) Subject to Section 4(b)(i) hereof, if any fact or event
     contemplated by Section 4(b)(iii)(D) hereof shall exist or have occurred,
     use its reasonable efforts to prepare a supplement or post-effective
     amendment to the Shelf Registration Statement or related Prospectus or any
     document incorporated therein by reference or file any other required
     document so that, as thereafter delivered to the purchasers of Transfer
     Restricted Securities, the Prospectus will

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     not contain an untrue statement of a material fact or omit to state any
     material fact required to be stated therein or necessary to make the
     statements therein not misleading.

          (xv) Provide CUSIP numbers for all Transfer Restricted Securities not
     later than the effective date of the Shelf Registration Statement and
     provide the Trustee under the Indenture with certificates for the
     Debentures that are in a form eligible for deposit with The Depository
     Trust Company.

          (xvi) Cooperate and assist to the extent reasonable in any filings
     required to be made with the NASD and in the performance of any due
     diligence investigation by any underwriter that is required to be retained
     in accordance with the rules and regulations of the NASD.

          (xvii) Otherwise use its best efforts to comply with all applicable
     rules and regulations of the Commission and all reporting requirements
     under the rules and regulations of the Exchange Act.

          (xviii) Cause the Indenture to be qualified under the TIA not later
     than the effective date of the Shelf Registration Statement required by
     this Agreement, and, in connection therewith, cooperate with the Trustee
     and the holders of Debentures to effect such changes to the Indenture as
     may be required for such Indenture to be so qualified in accordance with
     the terms of the TIA, and execute and use its reasonable efforts to cause
     the Trustee thereunder to execute all documents that may be required to
     effect such changes and all other forms and documents required to be filed
     with the Commission to enable such Indenture to be so qualified in a timely
     manner.

               (xix) Cause all Transfer Restricted Securities covered by the
          Shelf Registration Statement to be listed or quoted, as the case may
          be, on each securities exchange or automated quotation system on which
          similar securities issued by the Company are then listed or quoted.

               (xx) Provide promptly to each Holder upon written request each
          document filed with the Commission pursuant to the requirements of
          Section 13 and Section 15 of the Exchange Act after the effective date
          of the Shelf Registration Statement.

               (xxi) If reasonably requested by the underwriters, if any, make
          appropriate officers of the Company or the Guarantor reasonably
          available to the underwriters for meetings with prospective purchasers
          of the Transfer Restricted Securities and prepare and present to
          potential investors customary "road show" material in a manner
          consistent with other new issuances of other securities similar to the
          Transfer Restricted Securities.

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     (c) Each Holder agrees by acquisition of a Transfer Restricted Security
that, upon receipt of any notice from the Company of the existence of any fact
of the kind described in Section 4(b)(iii)(D) hereof, such Holder will, and will
use its reasonable efforts to cause any underwriter(s) in an Underwritten
Offering to, (A) hold any such notice in confidence and (B) forthwith
discontinue disposition of Transfer Restricted Securities pursuant to the Shelf
Registration Statement until:

          (i) such Holder has received copies of the supplemented or amended
     Prospectus contemplated by Section 4(b)(xiv) hereof; or

          (ii) such Holder is advised in writing (the "Advice") by the Company
     that the use of the Prospectus may be resumed, and has received copies of
     any additional or supplemental filings that are incorporated by reference
     in the Prospectus.

If so directed by the Company, each Holder will deliver to the Company (at the
Company's expense) all copies, other than permanent file copies then in such
Holder's possession, of the Prospectus covering such Transfer Restricted
Securities that was current at the time of receipt of such notice of suspension.

     (d) Each Holder who intends to be named as a selling Holder in the Shelf
Registration Statement shall furnish to the Company in writing, within 20
Business Days after receipt of a request therefor as set forth in a
questionnaire, such information regarding such Holder and the proposed
distribution by such Holder of its Transfer Restricted Securities as the Company
may reasonably request for use in connection with the Shelf Registration
Statement or Prospectus or preliminary Prospectus included therein. (The form of
the questionnaire is attached hereto as Exhibit A.) Holders that do not complete
the questionnaire and deliver it to the Company shall not be named as selling
securityholders in the Prospectus or preliminary Prospectus included in the
Shelf Registration Statement and therefore shall not be permitted to sell any
Transfer Restricted Securities pursuant to the Shelf Registration Statement.
Each Holder who intends to be named as a selling Holder in the Shelf
Registration Statement shall promptly furnish to the Company in writing such
other information as the Company may from time to time reasonably request in
writing.

     (e) Upon the effectiveness of the Shelf Registration Statement, each Holder
shall notify the Company at least three Business Days prior to any intended
distribution of Transfer Restricted Securities pursuant to the Shelf
Registration Statement (a "Sale Notice"), which notice shall be effective for
five Business Days. Each Holder of this Security, by accepting the same, agrees
to hold any communication by the Company in response to a Sale Notice in
confidence.

     5. Registration Expenses.

     (a) All expenses incident to the Company's or the Guarantor's performance
of or compliance with this Agreement shall be borne by the Company or the
Guarantor regardless of whether a Shelf Registration Statement becomes
effective, including, without limitation:

                                       13
<PAGE>

          (i) all registration and filing fees and expenses (including filings
     made by any Initial Purchasers or Holders with the NASD);

          (ii) all fees and expenses of compliance with federal securities and
     state Blue Sky or securities laws;

          (iii) all expenses of printing (including printing of Prospectuses and
     certificates for ADRs to be issued upon conversion of the Debentures),
     messenger and delivery services and telephone;

          (iv) all fees and disbursements of counsel to the Company and, subject
     to Section 5(b) below, the Holders of Transfer Restricted Securities;

          (v) all application and filing fees in connection with listing (or
     authorizing for quotation) the ADRs on a national securities exchange or
     automated quotation system pursuant to the requirements hereof; and

          (vi) all fees and disbursements of independent certified public
     accountants of the Company (including the expenses of any special audit and
     comfort letters required by or incident to such performance).

     Each of the Company and the Guarantor shall bear its internal expenses
(including, without limitation, all salaries and expenses of its officers and
employees performing legal, accounting or other duties), the expenses of any
annual audit and the fees and expenses of any Person, including special experts,
retained by the Company and the Guarantor.

     (b) In connection with the Shelf Registration Statement required by this
Agreement, the Company shall reimburse the Initial Purchasers and the Holders of
Transfer Restricted Securities being registered pursuant to the Shelf
Registration Statement, as applicable, for the reasonable fees and disbursements
of not more than one counsel (which fees shall be subject to a maximum amount to
be mutually agreed upon among the Company, the Initial Purchasers and the
Holders of Transfer Restricted Securities), which shall be Cleary, Gottlieb,
Steen & Hamilton, or such other counsel as may be chosen by a Majority of
Holders for whose benefit the Shelf Registration Statement is being prepared.

     6. Indemnification and Contribution.

     (a) The Company and the Guarantor, jointly and severally, shall indemnify
and hold harmless each Holder, such Holder's officers and employees and each
person, if any, who controls such Holder within the meaning of the Securities
Act (each, an "Indemnified Holder"), from and against any loss, claim, damage or
liability, joint or several, or any action in respect thereof (including, but
not limited to, any loss, claim, damage, liability or action relating to resales
of the Transfer Restricted Securities), to which such Indemnified Holder may
become subject, insofar as any such loss, claim, damage, liability or action
arises out of, or is based upon:

          (i) any untrue statement or alleged untrue statement of a material
     fact contained in (A) the Shelf Registration Statement or Prospectus or any

                                       14
<PAGE>

     amendment or supplement thereto or (B) any blue sky application or other
     document or any amendment or supplement thereto prepared or executed by the
     Company or the Guarantor (or based upon written information furnished by or
     on behalf of the Company or the Guarantor expressly for use in such blue
     sky application or other document or amendment on supplement) filed in any
     jurisdiction specifically for the purpose of qualifying any or all of the
     Transfer Restricted Securities under the securities law of any state or
     other jurisdiction (such application or document being hereinafter called a
     "Blue Sky Application"); or

          (ii) the omission or alleged omission to state therein any material
     fact required to be stated therein or necessary to make the statements
     therein, in the light of the circumstances under which they were made, not
     misleading,

and shall reimburse each Indemnified Holder promptly upon demand for any legal
or other expenses reasonably incurred by such Indemnified Holder in connection
with investigating or defending or preparing to defend against any such loss,
claim, damage, liability or action as such expenses are incurred; provided,
however, that the Company and the Guarantor shall not be liable in any such case
to the extent that any such loss, claim, damage, liability or action arises out
of, or is based upon, any untrue statement or alleged untrue statement or
omission or alleged omission made in the Shelf Registration Statement or
Prospectus or amendment or supplement thereto or Blue Sky Application in
reliance upon and in conformity with written information furnished to the
Company or the Guarantor by or on behalf of any Holder (or its related
Indemnified Holder) specifically for use therein. The foregoing indemnity
agreement is in addition to any liability which the Company or the Guarantor may
otherwise have to any Indemnified Holder.

     (b) Each Holder, severally and not jointly, shall indemnify and hold
harmless each of the Company and the Guarantor, and its officers, directors,
managers and employees and each person, if any, who controls the Company or the
Guarantor within the meaning of the Securities Act, from and against any loss,
claim, damage or liability, joint or several, or any action in respect thereof,
to which the Company or the Guarantor or any such officer, director, manager,
employee or controlling person may become subject, insofar as any such loss,
claim, damage or liability or action arises out of, or is based upon:

          (i) any untrue statement or alleged untrue statement of any material
     fact contained in the Shelf Registration Statement or Prospectus or any
     amendment or supplement thereto or any Blue Sky Application; or

          (ii) the omission or the alleged omission to state therein any
     material fact required to be stated therein or necessary to make the
     statements therein, in light of the circumstances under which they were
     made, not misleading,

but in each case only to the extent that such untrue statement or alleged untrue
statement or omission or alleged omission was made in reliance upon and in
conformity with written information furnished to the Company or the Guarantor by
or on behalf of such Holder (or its

                                       15
<PAGE>

related Indemnified Holder) specifically for use therein, and shall reimburse
the Company and the Guarantor and any such officer, director, manager, employee
or controlling person promptly upon demand for any legal or other expenses
reasonably incurred by the Company, the Guarantor or any such officer, director,
manager, employee or controlling person in connection with investigating or
defending or preparing to defend against any such loss, claim, damage, liability
or action as such expenses are incurred. The foregoing indemnity agreement is in
addition to any liability which any Holder may otherwise have to the Company,
the Guarantor and any such officer, director, manager, employee or controlling
person.

     (c) Promptly after receipt by an indemnified party under this Section 6 of
notice of any claim or the commencement of any action, the indemnified party
shall, if a claim in respect thereof is to be made against the indemnifying
party under this Section 6, notify the indemnifying party in writing of the
claim or the commencement of that action; provided, however, that the failure to
notify the indemnifying party shall not relieve it from any liability which it
may have under this Section 6 except to the extent it has been materially
prejudiced by such failure; and provided, further, that the failure to notify
the indemnifying party shall not relieve it from any liability which it may have
to an indemnified party otherwise than under this Section 6. If any such claim
or action shall be brought against an indemnified party, and it shall notify the
indemnifying party thereof, the indemnifying party shall be entitled to
participate therein and, to the extent that it wishes, jointly with any other
similarly notified indemnifying party, to assume the defense thereof with
counsel reasonably satisfactory to the indemnified party. After notice from the
indemnifying party to the indemnified party of its election to assume the
defense of such claim or action, the indemnifying party shall not be liable to
the indemnified party under this Section 6 for any legal or other expenses
subsequently incurred by the indemnified party in connection with the defense
thereof other than reasonable costs of investigation; provided, however, that if
a Majority of Holders shall have reasonably concluded that there may be one or
more legal defenses available to them and their respective officers, employees
and controlling persons that are different from or additional to those available
to the Company and the Guarantor and their respective officers, directors,
managers, employees and controlling persons, the reasonable fees and expenses of
a single separate counsel shall be paid, jointly and severally, by the Company
and the Guarantor. No indemnifying party shall:

          (i) without the prior written consent of the indemnified parties
     (which consent shall not be unreasonably withheld or delayed) settle or
     compromise or consent to the entry of any judgment with respect to any
     pending or threatened claim, action, suit or proceeding in respect of which
     indemnification or contribution may be sought hereunder (whether or not the
     indemnified parties are actual or potential parties to such claim or
     action) unless such settlement, compromise or consent includes an
     unconditional release of each indemnified party from all liability arising
     out of such claim, action, suit or proceeding, or

          (ii) be liable for any settlement of any such action effected without
     its written consent (which consent shall not be unreasonably withheld or
     delayed), but if settled with its written consent or if there be a final
     judgment for the plaintiff in any such action, the indemnifying party
     agrees to indemnify and hold

                                       16
<PAGE>

harmless any indemnified party from and against any loss or liability by reason
of such settlement or judgment.

     (d) If the indemnification provided for in this Section 6 shall for any
reason be unavailable or insufficient to hold harmless an indemnified party
under Section 6(a) or 6(b) in respect of any loss, claim, damage or liability
(or action in respect thereof) referred to therein, each indemnifying party
shall, in lieu of indemnifying such indemnified party, contribute to the amount
paid or payable by such indemnified party as a result of such loss, claim,
damage or liability (or action in respect thereof):

          (i) in such proportion as is appropriate to reflect the relative
     benefits received by the Company and the Guarantor from the offering and
     sale of the Transfer Restricted Securities on the one hand and a Holder
     with respect to the sale by such Holder of the Transfer Restricted
     Securities on the other, or

          (ii) if the allocation provided by clause (6)(d)(i) is not permitted
     by applicable law, in such proportion as is appropriate to reflect not only
     the relative benefits referred to in clause 6(d)(i) but also the relative
     fault of the Company and the Guarantor on the one hand and the Holder on
     the other in connection with the statements or omissions or alleged
     statements or alleged omissions that resulted in such loss, claim, damage
     or liability (or action in respect thereof), as well as any other relevant
     equitable considerations.

The relative benefits received by the Company and the Guarantor on the one hand
and a Holder on the other with respect to such offering and such sale shall be
deemed to be in the same proportion as the total net proceeds from the offering
of the Debentures purchased under the Purchase Agreement (before deducting
expenses) received by the Company, on the one hand, bear to the total proceeds
received by such Holder with respect to its sale or proposed sale of Transfer
Restricted Securities on the other. The relative fault of the parties shall be
determined by reference to whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company and the Guarantor on the one hand
or the Holders on the other, the intent of the parties and their relative
knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Company, the Guarantor and each Holder agree that it
would not be just and equitable if the amount of contribution pursuant to this
Section 6(d) were determined by pro rata allocation or by any other method of
allocation that does not take into account the equitable considerations referred
to in the first sentence of this paragraph (d). The amount paid or payable by an
indemnified party as a result of the loss, claim, damage or liability, or action
in respect thereof, referred to above in this Section 6 shall be deemed to
include, for purposes of this Section 6, any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending
or preparing to defend any such action or claim. Notwithstanding the provisions
of this Section 6, no Holder shall be required to contribute any amount in
excess of the amount by which the total price at which the Transfer Restricted
Securities purchased by it were resold exceeds the amount of any damages which
such Holder has otherwise been required to pay by reason of any untrue or
alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the

                                       17
<PAGE>

meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. The Holders' obligations to contribute as provided in this
Section 6(d) are several and not joint.

     7. Rule 144A. In the event the Company and the Guarantor are not subject to
Section 13 or 15(d) of the Exchange Act, the Company and the Guarantor hereby
agrees with each Holder, for so long as any Transfer Restricted Securities
remain outstanding, to make available to any Holder or beneficial owner of
Transfer Restricted Securities in connection with any sale thereof and any
prospective purchaser of such Transfer Restricted Securities from such Holder or
beneficial owner, the information required by Rule 144A(d)(4) under the
Securities Act in order to permit resales of such Transfer Restricted Securities
pursuant to Rule 144A.

     8. Participation in Underwritten Registrations. No Holder may participate
in any Underwritten Registration hereunder unless at least 20% of the Holders of
the Transfer Restricted Securities outstanding at the time of the Underwritten
Registration participate in such Underwritten Registration and such Holder:

          (i) agrees to sell such Holder's Transfer Restricted Securities on the
     basis provided in any underwriting arrangements approved by the Persons
     entitled hereunder to approve such arrangements; and

          (ii) completes and executes all reasonable questionnaires, powers of
     attorney, indemnities, underwriting agreements, lock-up letters and other
     documents required under the terms of such underwriting arrangements.

     9. Selection of Underwriters. The Holders of Transfer Restricted Securities
covered by the Shelf Registration Statement who desire to do so may sell such
Transfer Restricted Securities in an Underwritten Offering. In any such
Underwritten Offering, the investment banker or investment bankers and manager
or managers that will administer the offering will be selected by a Majority of
Holders whose Transfer Restricted Securities are included in such offering;
provided, however, that such investment bankers and managers must be reasonably
satisfactory to the Company.

     10. Miscellaneous.

     (a) Remedies. The Company and the Guarantor acknowledges and agrees that
any failure by the Company and the Guarantor to comply with its obligations
under Section 2 hereof may result in material irreparable injury to the Initial
Purchasers or the Holders for which there is no adequate remedy at law, that it
will not be possible to measure damages for such injuries precisely and that, in
the event of any such failure, the Initial Purchasers or any Holder may obtain
such relief as may be required to specifically enforce the Company's obligations
under Section 2 hereof.

     (b) Adjustments Affecting Transfer Restricted Securities. The Company and
the Guarantor shall not, directly or indirectly, take any action with respect to
the Transfer Restricted Securities as a class that would adversely affect the
ability of the Holders of Transfer Restricted

                                       18
<PAGE>

Securities to include such Transfer Restricted Securities in a registration
undertaken pursuant to this Agreement.

     (c) No Inconsistent Agreements. Neither the Company nor the Guarantor will,
on or after the date of this Agreement, enter into any agreement with respect to
its securities that is inconsistent with the rights granted to the Holders in
this Agreement or otherwise conflicts with the provisions hereof. In addition,
neither the Company nor the Guarantor shall grant to any of its security holders
(other than the holders of Transfer Restricted Securities in such capacity) the
right to include any of its securities in the Shelf Registration Statement
provided for in this Agreement other than the Transfer Restricted Securities.
Except as described or incorporated by reference in the Offering Memorandum
dated November 13, 2002 relating to the Debentures, neither the Company nor the
Guarantor has previously entered into any agreement (which has not expired or
been terminated) granting any registration rights with respect to its securities
to any Person which rights conflict with the provisions hereof.

     (d) Amendments and Waivers. This Agreement may not be amended, modified or
supplemented, and waivers or consents to or departures from the provisions
hereof may not be given, unless the Company has obtained the written consent of
a Majority of Holders.

     (e) Notices. All notices and other communications provided for or permitted
hereunder shall be made in writing by hand-delivery, first-class mail
(registered or certified, return receipt requested), telex, telecopier, or air
courier guaranteeing overnight delivery:

          (i)   if to a Holder, at the address set forth on the records of the
     registrar under the Indenture or the transfer agent of ADRs, as the case
     may be; and

          (ii)  if the Company:

                Teva Pharmaceutical Finance B.V.
                c/o MeesPierson Trust (Curacao) N.V.
                J.B. Gorsiraweg 14
                Curacao, Netherlands Antilles
                Attention:  Steven Melkman
                Fax:  59999 4614129

          (iii) if to the Guarantor:

                Teva Pharmaceutical Industries Limited
                5 Basel Street
                P.O. Box 3190
                Petach Tikva 49131
                Israel
                Attention: Uzi Karniel
                Fax: 972-3-926-7429

                In each case with a copy to:

                                       19
<PAGE>

                Willkie Farr & Gallagher
                787 7th Avenue
                New York, NY  10019
                Attention: Peter H. Jakes, Esq.
                Fax: (212) 728-8111

     All such notices and communications shall be deemed to have been duly given
at: the time delivered by hand, if personally delivered; five Business Days
after being deposited in the mail, postage prepaid, if mailed; when answered
back, if telexed; when receipt acknowledged, if telecopied; and on the next
Business Day, if timely delivered to an air courier guaranteeing overnight
delivery.

     (f) Successors and Assigns. This Agreement shall inure to the benefit of
and be binding upon the successors and assigns of each of the parties, including
without limitation and without the need for an express assignment, subsequent
Holders of Transfer Restricted Securities; provided, however, that (i) this
Agreement shall not inure to the benefit of or be binding upon a successor or
assign of a Holder unless and to the extent such successor or assign acquired
Transfer Restricted Securities from such Holder and (ii) nothing contained
herein shall be deemed to permit any assignment, transfer or other disposition
of Transfer Restricted Securities in violation of the terms of the Purchase
Agreement or the Indenture. If any transferee of any Holder shall acquire
Transfer Restricted Securities, in any manner, whether by operation of law or
otherwise, such Transfer Restricted Securities shall be held subject to all of
the terms of this Agreement, and by taking and holding such Transfer Restricted
Securities such person shall be conclusively deemed to have agreed to be bound
by and to perform all of the terms and provisions of this Agreement.

     (g) Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

     (h) Securities Held by the Company or Their Affiliates. Whenever the
consent or approval of Holders of a specified percentage of Transfer Restricted
Securities is required hereunder, Transfer Restricted Securities held by the
Company or its Affiliates shall not be counted in determining whether such
consent or approval was given by the Holders of such required percentage.

     (i) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

     (j) Governing Law. This Agreement shall be governed by, and construed in
accordance with, the law of the State of New York.

     (k) Severability. If any one or more of the provisions contained herein, or
the application thereof in any circumstance, is held invalid, illegal or
unenforceable, the validity,

                                       20
<PAGE>

legality and enforceability of any such provision in every other respect and of
the remaining provisions contained herein shall not be affected or impaired
thereby.

     (l) Entire Agreement. This Agreement is intended by the parties as a final
expression of their agreement and intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained herein. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein
with respect to the registration rights granted by the Company with respect to
the Transfer Restricted Securities. This Agreement supersedes all prior
agreements and understandings between the parties with respect to such subject
matter.

                                       21
<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first written above.

                                        TEVA PHARMACEUTICAL FINANCE B.V.

                                        By  /s/ Richard S. Egosi
                                            ----------------------------------
                                            Name:  Richard S. Egosi
                                            Title: Attorney-in-Fact

                                        TEVA PHARMACEUTICAL INDUSTRIES LIMITED

                                        By  /s/ Israel Makov
                                            ----------------------------------
                                            Name:  Israel Makov
                                            Title: President and Chief Executive
                                                   Officer

                                        By  /s/ Dan S. Suesskind
                                            ----------------------------------
                                            Name:  Dan S. Suesskind
                                            Title: Chief Financial Officer

                                       22
<PAGE>

                                        LEHMAN BROTHERS INC.
                                        SALOMON SMITH BARNEY INC.

                                        By:  LEHMAN BROTHERS INC.

                                        By  /s/ Jason Fertig
                                            ----------------------------------
                                            Authorized Representative

                                       23
<PAGE>

                                                                       Exhibit A

                        Teva Pharmaceutical finance B.V.

                        NOTICE OF REGISTRATION STATEMENT

                                       AND

                SELLING SECURITYHOLDER ELECTION AND QUESTIONNAIRE

--------------------------------------------------------------------------------

                                     NOTICE

     Teva Pharmaceutical Finance B.V. (the "Company") and Teva Pharmaceutical
Industries Limited ("Teva") have filed, or intend shortly to file, with the
Securities and Exchange Commission (the "Commission") a registration statement
on Form F-3 or such other Form as may be available (the "Shelf Registration
Statement"), for the registration and resale under Rule 415 of the Securities
Act of 1933, as amended (the "Securities Act"), of the Company's 0.375%
Convertible Senior Debentures due 2022 (CUSIP Nos. 88164M AA 6 and N85093 AA 5)
(the "Debentures"), and ADRs of Teva issuable upon conversion thereof (the
"ADRs" and together with the Debentures, the "Transfer Restricted Securities")
in accordance with the terms of the Resale Registration Rights Agreement, dated
as of November 18, 2002 (the "Registration Rights Agreement") among the Company,
Teva, Lehman Brothers Inc. and Salomon Smith Barney Inc. A copy of the
Registration Rights Agreement is available from the Company upon request at the
address set forth below. All capitalized terms not otherwise defined herein have
the meaning ascribed thereto in the Registration Rights Agreement.

     In order to sell or otherwise dispose of any Transfer Restricted Securities
pursuant to the Shelf Registration Statement, a beneficial owner of Transfer
Restricted Securities generally will be required to be named as a selling
securityholder in the related Prospectus, deliver a Prospectus to purchasers of
Transfer Restricted Securities, be subject to certain civil liability provisions
of the Securities Act and be bound by those provisions of the Registration
Rights Agreement applicable to such beneficial owner (including certain
indemnification rights and obligations, as described below). In order to be
included in the Shelf Registration Statement, this Election and Questionnaire
must be completed, executed and delivered to the Company at the address set
forth herein for receipt PRIOR TO OR ON [insert here date that is 20 business
days from the date of this notice] (the "Election and Questionnaire Deadline").
Beneficial owners that do not complete this Notice and Questionnaire prior to
the Election and Questionnaire Deadline and deliver it to the Company as
provided below will not be named as selling securityholders in the prospectus
and therefore will not be permitted to sell any Transfer Restricted Securities
pursuant to the Shelf Registration Statement.

     Certain legal consequences arise from being named as a selling
securityholder in the Shelf Registration Statement and the related Prospectus.
Accordingly, holders and beneficial owners of Transfer Restricted Securities are
advised to consult their own securities law counsel

                                      A-1
<PAGE>

regarding the consequences of being named or not being named as a selling
securityholder in the Shelf Registration Statement and the related Prospectus.

                                    ELECTION

     The undersigned Holder (the "Selling Securityholder") of Transfer
Restricted Securities hereby elects to include in the Shelf Registration
Statement the Transfer Restricted Securities beneficially owned by it and listed
below in Item 3 (unless otherwise specified under Item 3). The undersigned, by
signing and returning this Election and Questionnaire, understands that it will
be bound by the terms and conditions of this Election and Questionnaire and the
Registration Rights Agreement.

     Pursuant to the Registration Rights Agreement, the Selling Securityholder
has agreed to indemnify and hold harmless the Company, Teva, the Company's
managers, Teva's directors, the Company's and Teva's officers who sign the Shelf
Registration Statement and each person, if any, who controls the Company or Teva
within the meaning of either Section 15 of the Securities Act or Section 20 of
the Exchange Act, from and against certain losses arising in connection with
statements concerning the Selling Securityholder made in the Shelf Registration
Statement or the related Prospectus in reliance upon the information provided in
this Election and Questionnaire.

     The Selling Securityholder hereby provides the following information to the
Company and Teva and represents and warrants that such information is accurate
and complete:

                                  QUESTIONNAIRE

1.   (a)  Full legal name of Selling Securityholder:

     (b)  Full legal name of registered holder (if not the same as (a) above)
          through which Transfer Restricted Securities listed in (3) below are
          held:

     (c)  Full legal name of DTC participant (if applicable and if not the same
          as (b) above) through which Transfer Restricted Securities listed in
          (3) are held:

2.   Address for notices to Selling Securityholder:

     Telephone:

     Fax:

     Contact Person:

3.   Beneficial ownership of Transfer Restricted Securities:

                                      A-2
<PAGE>

     (a)  Type of Transfer Restricted Securities beneficially owned, and
          principal amount of Debentures, or number of ADRs or ordinary shares
          of Teva, as the case may be, beneficially owned:

     (b)  CUSIP No(s). of such Transfer Restricted Securities beneficially
          owned:

4.   Beneficial ownership of the Company's or Teva's securities owned by the
     Selling Securityholder:

     Except as set forth below in this Item (4), the undersigned is not the
     beneficial or registered owner of any securities of the Company or Teva
     other than the Transfer Restricted Securities listed above in Item (3)
     ("Other Securities").

     (a)  Type and amount of Other Securities beneficially owned by the Selling
          Securityholder:

     (b)  CUSIP No(s). of such Other Securities beneficially owned:

5.    Relationship with Teva:

     Except as set forth below, neither the undersigned nor any of its
     affiliates, officers, directors or principal equity holders (5% or more)
     has held any position or office or has had any other material relationship
     with Teva (or its predecessors or affiliates) during the past three years.

     State any exceptions here:

6.   Broker-dealer status:

     (a)  Is the Selling Securityholder a registered broker-dealer?

          Yes  __ No __

     (b)  Is the Selling Securityholder an affiliate of a broker-dealer?

          Yes  __ No __

                                      A-3
<PAGE>

     If the answer to question (b) is ""Yes," you must answer the questions in
     (c) below.

     (c)  (i) If the Selling Securityholder is an affiliate of a registered
          broker-dealer, list the name(s) of the affiliated broker-dealer(s):

          (ii) If the Selling Securityholder is an affiliate of a registered
          broker-dealer, did it purchase the Transfer Restricted Securities in
          the ordinary course of business?

          Yes __ No __

          (iii) If the Selling Securityholder is an affiliate of a registered
          broker-dealer, at the time of the purchase of the Transfer Restricted
          Securities, did the Selling Securityholder have any agreements or
          understandings, directly or indirectly, with any person to distribute
          the Transfer Restricted Securities?

          Yes __ No __

7.   Plan of Distribution

     Except as set forth below, the undersigned (including its donees or
     pledgees) intends to distribute the Transfer Restricted Securities listed
     above in Item (3) pursuant to the Shelf Registration Statement only as
     follows (if at all). Such Transfer Restricted Securities may be sold from
     time to time directly by the undersigned or, alternatively, through
     underwriters, broker-dealers or agents. If the Transfer Restricted
     Securities are sold through underwriters or broker-dealers, the Selling
     Securityholder will be responsible for underwriting discounts or
     commissions or agent's commissions. Such Transfer Restricted Securities may
     be sold in one or more transactions at fixed prices, at prevailing market
     prices at the time of sale, at varying prices determined at the time of
     sale, or at negotiated prices. Such sales may be effected in transactions
     (which may involve crosses or block transactions):

          (i) on any national securities exchange or quotation service on which
     the Transfer Restricted Securities may be listed or quoted at the time of
     sale;

          (ii) in the over-the-counter market;

          (iii) in transactions otherwise than on such exchanges or services or
     in the over-the-counter market; or

          (iv) through the writing of options.

     In connection with sales of the Transfer Restricted Securities or
     otherwise, the undersigned may enter into hedging transactions with
     broker-dealers, which may in turn engage in short sales of the Transfer
     Restricted Securities and deliver Transfer Restricted

                                      A-4
<PAGE>

     Securities to close out such short positions, or loan or pledge Transfer
     Restricted Securities to broker-dealers that in turn may sell such
     securities.

     State any exceptions here:

     Note: In no event will such method(s) of distribution take the form of an
underwritten offering of the Transfer Restricted Securities without the prior
agreement of the Company or Teva.

     By signing below, the Selling Securityholder acknowledges that it
understands its obligation to comply, and agrees it will comply, with the
provisions of the prospectus delivery and other provisions of the Securities Act
and the Exchange Act and the respective rules and regulations promulgated
thereunder, particularly Regulation M thereunder (or any successor rules or
regulations), in connection with any offering of Transfer Restricted Securities
pursuant to the Shelf Registration Statement.

     If the Selling Securityholder transfers all or any portion of the Transfer
Restricted Securities listed in Item 3 above after the date on which such
information is provided to the Company, the Selling Securityholder agrees to
notify the transferee(s) at the time of the transfer of its rights and
obligations under this Election and Questionnaire and the Registration Rights
Agreement.

     By signing below, the Selling Securityholder consents to the disclosure of
the information contained herein in its answers to items (1) through (6) above
and the inclusion of such information in the Shelf Registration Statement and
the related Prospectus. The Selling Securityholder understands that such
information will be relied upon by the Company and Teva in connection with the
preparation or amendment of the Shelf Registration Statement and the related
Prospectus.

     In accordance with the Selling Securityholder's obligation under the
Registration Rights Agreement to provide such information as may be required by
law for inclusion in the Shelf Registration Statement, the Selling
Securityholder agrees to promptly notify the Company of any inaccuracies or
changes in the information provided herein that may occur subsequent to the date
hereof at any time while the Shelf Registration Statement remains effective. All
notices hereunder and pursuant to the Registration Rights Agreement shall be
made in writing at the address set forth below.

     Once this Election and Questionnaire is executed by the Selling
Securityholder and received by the Company, the terms of this Election and
Questionnaire and the representations and warranties contained herein shall be
binding on, shall inure to the benefit of and shall be enforceable by the
respective successors, heirs, personal representatives and assigns of the
Company, Teva and the Selling Securityholder with respect to the Transfer
Restricted Securities beneficially owned by such Selling Securityholder and
listed in Item 3 above. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York.

                                      A-5
<PAGE>

     IN WITNESS WHEREOF, the undersigned, by authority duly given, has caused
this Election and Questionnaire to be executed and delivered either in person or
by its duly authorized agent.

Dated:

                                        Beneficial Owner

                                        By:
                                             ---------------------------------
                                             Name:
                                             Title:

Please return the completed and executed Election and Questionnaire for receipt
prior to or on [insert date of Election and Questionnaire Deadline] to Teva
Pharmaceutical Finance B.V. at:

     Teva Pharmaceutical Finance B.V.
     c/o MeesPierson Trust (Curacao) N.V.
     J.B. Gorsiraweg 14
     Curacao, Netherlands Antilles
     Attention:  Steven Melkman

                                      A-6
<PAGE>

                                                            ANNEX 1 TO EXHIBIT A

                           NOTICE OF TRANSFER PURSUANT
                            TO REGISTRATION STATEMENT

Teva Pharmaceutical Finance B.V.
c/o MeesPierson Trust (Curacao) N.V.
J.B. Gorsiraweg 14
Curacao, Netherlands Antilles

                  Re:    Teva Pharmaceutical Finance B.V.'s  o% Convertible
                         Senior Debentures due 2022 (the "Debentures")

Dear Sirs:

     Please be advised that           has transferred $           aggregate
principal amount of the above-referenced Debentures or           ADRs or
ordinary shares of Teva Pharmaceutical Industries Limited issued on conversion
or repurchase of Debentures, pursuant to the Registration Statement on Form F-3
(File No. 333-        ) filed by the Company and Teva Pharmaceutical Industries
Limited.

     We hereby certify that the prospectus delivery requirements, if any, of the
Securities Act of 1933, as amended, have been satisfied with respect to the
transfer described above and that the above named beneficial owner of the
Debentures, ADRs or ordinary shares is named as a selling securityholder in the
Prospectus dated , or in amendments or supplements thereto, and that the
aggregate principal amount of the Debentures, number of ADRs or ordinary shares
transferred are [all or a portion of] the Debentures, ADRs or ordinary shares
listed in such Prospectus, as amended or supplemented, opposite such owner's
name.

                                        Very truly yours,

                                        [name]
                                        By:
                                             ---------------------------------
                                                  (Authorized signature)

Dated:
        ---------------------------

                                      A-7
<PAGE>Translated from the Hebrew

                                                                     Exhibit 4.7

                          ARTICLES OF ASSOCIATION

                                     of

                   TEVA PHARMACEUTICAL INDUSTRIES LIMITED

                          A Limited Share Company

                                                       Updated on April 22, 2002

<PAGE>

                           Translated from the Hebrew

                                TABLE OF CONTENTS
                                -----------------

A.   INTRODUCTION..............................................................4

Interpretation.................................................................4

Objectives and Purpose of the Company..........................................5

Limitation of Liability........................................................5

B.   CAPITAL OF THE COMPANY

Capital Structure..............................................................6

Share Certificates.............................................................7

Transfer and Endorsement of Shares.............................................8

Bearer Share Warrants.........................................................10

Increase and Issue of the Registered Capital..................................11

Change of the Registered Capital..............................................12

C.   GENERAL MEETINGS.........................................................12

Deliberations at General Meetings.............................................13

Votes by the Shareholders.....................................................15

D.   THE BOARD OF DIRECTORS...................................................17

Appointment and Retirement from Office........................................18

Remuneration of Directors.....................................................21

Powers and Duties of the Board of Directors...................................22

Operations of the Board of Directors..........................................22

Committees of the Board of Directors..........................................24

Audit Committee...............................................................25

Signature and Minutes.........................................................25

Director-Emeritus.............................................................26

                                       2

<PAGE>

                           Translated from the Hebrew

E.   CEO......................................................................27

F.   DIVIDEND, RESERVE FUND AND CAPITALIZATION................................28

Dividend......................................................................28

Reserve Fund..................................................................29

Capitalization................................................................29

G.   AUDITING AND NOTICES.....................................................31

Auditing and Internal Auditor.................................................31

Notices.......................................................................32

H.   EXEMPTION, INSURANCE AND INDEMNIFICATION OF OFFICERS.....................33

I.   MISCELLANEOUS............................................................34

Amendment of the Articles of Association......................................34

Special Purchase Offer........................................................34

                                       3

<PAGE>

                           Translated from the Hebrew

                                 A. INTRODUCTION
                                    ------------

Interpretation
--------------

1.   In these Articles of Association, the words which appear in the first
     column in the table set forth below shall be interpreted in accordance with
     the interpretation which is given to them on the same line in the second
     column thereof. This shall apply as long as the text or context of the
     matter does not include any statement which contradicts said meaning or
     which is not consistent therewith.

     Words                              Interpretations
     -----                              ---------------

     "the Company"                      Teva Pharmaceutical Industries Ltd.

     "the Law"                          The Companies Law, Hatashna't -1999, and
                                        any other law which shall replace or
                                        amend it and which shall apply to the
                                        Company and which shall be in force at
                                        the time in question.

     "these Articles"                   The Articles of Association of the
                                        Company, as they are set forth in this
                                        document or as they shall be in force
                                        from time to time.

     "the Directors"                    The Directors, or, in the case of fewer
                                        than two, the Director of the Company at
                                        the time in question.

     "the Board of Directors"           The Board of Directors established
                                        pursuant to these Articles of
                                        Association.

     "the Registered Office"            The registered office of the Company at
                                        any time.

     "the Register"                     The register of the shareholders in the
                                        Company, which must be maintained
                                        pursuant to the provisions of the Law.

     "Month"                            A Gregorian calendar month.

     "Year"                             A Gregorian calendar year.

                                       4

<PAGE>

                           Translated from the Hebrew

     "CEO"                              A General Manager pursuant to the
                                        provisions of the Law.

     "the Accountant"                   An Auditing Accountant pursuant to the
                                        provisions of the Law.

     "Officer"                          As per its definition in the Law.

     The Hebrew version of these Articles shall be the sole binding version.

     Writing shall be deemed to include printing and lithography and any other
     means of setting down words in a visible form. Words which are in the
     singular form shall be deemed to include the plural form, and vice versa.
     Words which are in the masculine gender shall be deemed to include the
     feminine gender, and vice versa. Words which apply to individual persons
     shall be deemed to include incorporated entities, unless specified
     otherwise.

     With the exception of that set forth above, the words and expressions in
     these Articles shall have the same meaning as that given to them in the
     Law, unless they conflict with the content or the subject of that set forth
     in writing.

Objectives and Purpose of the Company
-------------------------------------

2.   The purpose of the Company is to engage in any lawful endeavor.

3.   The Company's center of management shall be in Israel, unless the Board of
     Directors shall otherwise resolve, with a majority of three-quarters of the
     participating votes.

4.   The Company is entitled to contribute a reasonable amount to a worthy
     cause, even if the contribution does not fall within the framework of its
     business objectives.

Limitation of Liability
-----------------------

5.   The liability of the  shareholders  is limited to redemption of the par
     value of their shares.

                                       5

<PAGE>

                           Translated from the Hebrew

                            B. CAPITAL OF THE COMPANY
                               ----------------------

Capital Structure
-----------------

6.   The registered share capital of the Company is in the amount of NIS
     50,000,000 (fifty million New Israeli Shekels), composed of 500,000,000
     shares at a par value of 0.1 NIS per share, divided as follows:

     499,575,693       ordinary shares at a par value of 0.1 NIS per share;

     424,247           Class "A" ordinary shares at a par value of 0.1
                       NIS per share;

     60                deferred shares at a par value of 0.1 NIS per share.

7.   (a)  The ordinary shares at a par value of 0.1 NIS per share and the Class
          "A" ordinary shares at a par value of 0.1 NIS per share shall confer
          upon the holders thereof equal rights with regard to the receipt of
          dividends, the receipt of bonus shares and the distribution of Company
          property during liquidation.

     (b)  In addition, the ordinary shares at a par value of 0.1 NIS per share
          shall confer upon the holders thereof equal rights with regard to
          voting and the right to appoint directors, including pursuant to the
          provisions of Articles 59 and 60 below. The Class "A" ordinary shares
          at a par value of 0.1 NIS per share shall not confer upon the holders
          thereof any rights whatsoever with regard to voting and the right to
          appoint directors.

8.   The deferred shares at a par value of 0.1 NIS per share shall not confer
     upon the holders thereof any rights, except for the right to be reimbursed
     in the amount of the par value thereof upon liquidation.

9.   Should the share capital, at any time whatsoever, be divided into different
     types of shares, it shall be permissible to change the rights of any such
     type (unless otherwise set forth in the terms of issue of the shares of
     that type) after having obtained the consent, in writing, of all of the
     shareholders of the shares that have been issued of that type, or following
     the adoption of a resolution, by a majority of three-quarters of the
     participating votes, at a meeting of the shareholders of that type. The
     provisions of these Articles with regard to General Meetings shall also
     apply, mutatis mutandis, with regard to such a meeting.

                                       6

<PAGE>

                           Translated from the Hebrew

10.  The Company is entitled, subject to the provisions of the Law, to issue
     redeemable preferred shares or redeemable securities, pursuant to the terms
     and in the manner which shall be set forth by the Company at a General
     Meeting, and to redeem said shares or securities. The Company shall be
     entitled to decide upon the establishment of a fund or funds for the
     purpose of redemption of redeemable preferred shares or of other redeemable
     securities, in whole or in part, and to decide upon the amounts which shall
     be allocated to said fund or funds and the sources from which said amounts
     shall be allocated.

11.  The shares shall be under the supervision of the Board of Directors, which
     shall be entitled, subject to the provisions of the Law, to issue them, to
     grant option rights for the purchase thereof, or to confer them in any
     manner to such persons, subject to such reservations and at such times as
     the Board of Directors shall see fit - provided, however, that no share
     whatsoever shall be issued at less than its par value, other than pursuant
     to the provisions of the Law.

12.  The Company is entitled, at any time, to pay a commission to any person who
     shall underwrite, or shall agree to underwrite (whether absolutely or
     conditionally), shares or bonds of the Company, or who shall obtain the
     commitment of an underwriter, or shall agree to obtain the commitment of an
     underwriter (whether absolutely or conditionally), with regard to shares or
     bonds of the Company.

     However, should the commission with regard to the shares be paid, or be
     payable, out of capital, the legal conditions and requirements concerning
     such payment shall be preserved and upheld. The commission may be paid in
     cash, in shares or in bonds of the Company, or by way of any two or of all
     three of said means.

13.  Unless otherwise stipulated in these Articles, the Company shall be
     entitled to consider the registered holder of any share to be the absolute
     holder of said share, and accordingly, shall not be obligated to recognize
     any claim in equity or any claim on any other basis which may be filed by
     any other person with regard to such a share or with regard to any benefit
     related to such a share, unless it shall have been instructed to do so by a
     competent court of law or shall be required to do so by virtue of the
     provisions of the Law or by virtue of the provisions of any other law.

Share Certificates
------------------

14.  The share certificates shall be issued by the Company and shall bear the
     properly affixed signature of two Directors, or of one Director and the
     Secretary of the Company. Each shareholder shall be entitled to receive,
     free of charge, one certificate with respect to the shares which are
     registered in his or her name, or,

                                       7

<PAGE>

                           Translated from the Hebrew

     with the approval of the Board of Directors (against payment of a price
     which shall be determined by the Board of Directors from time to time), a
     number of certificates, each of which shall be issued with respect to one
     or more of the shares which are held by him or her; The Company shall issue
     the certificates with respect to fully paid-up shares within one month of
     the date of the issue thereof, or within one month of the date of receipt
     of the total consideration with respect thereto, or within one month of the
     date on which the Company shall have been provided, pursuant to the
     provisions of the Law and of these Articles, with the certificate of
     transfer of the fully paid-up shares with respect to which the share
     certificate is requested. Each share certificate shall designate the
     numbers of the shares with respect to which it was issued and the amount
     which was paid for said shares.

15.  Should any share certificate become mutilated or defaced, then, following
     the submission of said certificate to the Secretary of the Company, the
     Board of Directors or the Secretary of the Company shall be entitled to
     instruct that said certificate shall be canceled and a new certificate
     shall be issued in its stead; Should a share certificate become lost or
     destroyed, then, following the submission of evidence to the satisfaction
     of the Board of Directors or the Secretary of the Company, and following
     the submission of such guarantee of indemnification and compensation for
     damages as the Board of Directors or the Secretary of the Company shall see
     fit to require, another certificate shall be delivered in its stead to the
     person who is entitled to the certificate which became lost or destroyed,
     against such payment as shall be determined by the Board of Directors or
     the Secretary of the Company from time to time.

16.  A share certificate which is registered in the names of two or more persons
     shall be delivered to that person whose name is listed first in the
     Register.

Transfer and Endorsement of Shares
----------------------------------

17.  The Company shall maintain Registers according to the Law, and in addition,
     it is entitled to maintain additional registers of shareholders outside
     Israel (hereinafter: "Additional Register").

18.  No transfer of any share shall be registered unless a certificate of
     transfer shall have been submitted to the Company, in the usual form or in
     a form which shall be set forth by the Board of Directors or the Secretary
     of the Company from time to time. Shares of more than one type shall not be
     included in the same certificate of transfer. A certificate of transfer of
     any share shall be signed by the transferor and the transferee, or by
     persons on their behalf. The Board of Directors or the Secretary of the
     Company, at their sole discretion, is entitled to decide that, in cases of
     transfer of fully paid-up shares, the certificate of transfer shall be
     signed by or on

                                       8

<PAGE>

                           Translated from the Hebrew

     behalf of the transferor alone. In addition, the Board of Directors or the
     Secretary of the Company, at their sole discretion, are entitled to decide
     that there shall be no need for the signature of a witness in order to
     validate the signatures which appear on the certificate of transfer.

     The transferor shall be deemed to be the holder of a transferred share
     until the name of the transferee shall have been registered in the Register
     with regard to said share. With regard to shares which are registered in an
     Additional Register, a certificate of transfer may be drawn up in the form,
     and may be signed in the manner, which shall be permitted or customary,
     according to law or prevailing procedure, in the country in which the
     Additional Register is maintained.

19.  Each certificate of transfer shall be handed in for registration at the
     Registered Office, or the office where an Additional Register of the
     Company is maintained (whichever is relevant), or in any other place, as
     the Board of Directors or the Secretary of the Company shall set forth from
     time to time. The share certificates with respect to the transferred
     shares, and any other evidence which the Board of Directors or the
     Secretary of the Company shall require, in order to prove the transferor's
     right of ownership or his or her right to transfer the shares, shall be
     attached to said certificate of transfer.

20.  The Board of Directors is entitled to refuse to register or to confirm the
     transfer of shares, until the shares whose transfer is desired or any
     thereof shall have been fully paid up. The fact of whether or not the
     refusal applies to a transferee who is the holder of a share in the Company
     shall have no relevance.

21.  The executors of the will or of the estate of an individual shareholder who
     has died - or, in cases where there are no executors of a will or of the
     estate, the persons who have been declared by a competent court of law to
     hold a right of benefit, in the capacity of the heirs of said individual
     shareholder who has died - shall be the only persons who shall be
     recognized by the Company as the holders of a right in any share which is
     registered in the name of the deceased individual. Should a share be
     registered in the names of two or more shareholders, the Company shall
     recognize only the surviving partner or the surviving partners, or the
     executors of the will or of the estate of the last partner to have died, as
     the holders of a right in said share, and, should there be no executor of a
     will or of the estate (of the last deceased partner), the Company shall
     recognize, as the holders of a right in said share, only the persons who
     have been declared by a competent court of law to hold a right of benefit,
     in the capacity of the heirs of the last deceased partner.

22.  Any person or entity that has become entitled to a share as the result of
     the demise or bankruptcy of a shareholder shall be entitled - after having
     provided such evidence as the Board of Directors or the Secretary of the
     Company shall require of

                                       9

<PAGE>

                           Translated from the Hebrew

     that person or entity from time to time - to be registered as a shareholder
     with respect to said share, or, instead of being personally registered as a
     shareholder, to perform any transfer which the deceased or bankrupt
     shareholder could have performed. However, in any such case, the Board of
     Directors shall be entitled to refuse or to delay registration, as it would
     have been entitled to do in the case of transfer of the share by the
     deceased shareholder prior to his or her death, or by the bankrupt
     shareholder prior to the occurrence of the bankruptcy.

23.  Any person or entity that has become entitled to a share as the result of
     the demise or bankruptcy of a shareholder shall also be entitled to the
     same dividends and other rights to which said person or entity would have
     been entitled, had said person or entity been the registered holder of said
     share. However, prior to being registered as a shareholder, said person or
     entity shall not be entitled, with respect to said share, to benefit from
     any right which is granted to shareholders with regard to General Meetings
     of shareholders in the Company.

Bearer Share Warrants
---------------------

24.  The provisions of the sections that appear in this chapter, hereinafter,
     shall apply solely and exclusively with regard to bearer share warrants
     which were issued prior to the year 2001.

25.  A bearer share warrant shall entitle the holder thereof to the shares which
     are registered therein. These shares shall be transferable by way of
     delivery of the actual share warrant. The provisions of these Articles of
     Association with regard to the transfer and endorsement of shares shall not
     apply to shares which are included in these share warrants. The holder of a
     bearer share warrant who shall return the share warrant to the Company for
     the purpose of its cancellation, and who shall pay the amount which shall
     be determined by the Board of Directors for this purpose from time to time,
     shall be entitled to have his or her name registered in the Register as the
     holder of the shares which had been included in the share warrant which was
     returned, in accordance with that which has been set forth, above.

26.  The holder of a bearer share warrant is entitled to deposit the share
     warrant in the Registered Office during its business hours, and, as of two
     business days from the date of deposit and thereafter, as long as said
     share warrant remains deposited as stated above, the depositor shall be
     entitled to receive notices from the Company, in the manner in which such
     notices are given to the holders of registered shares, to sign a demand for
     the convocation of a General Meeting of the Company, to participate in any
     General Meeting of the Company, to vote therein, and to exercise the
     remaining rights which are granted to any shareholder at any General
     Meeting which is convened, as if his or her name were registered in the
     Register as the owner of the shares which are included in the deposited
     share warrant, provided

                                       10

<PAGE>

                           Translated from the Hebrew

     that the shares are of a type which confers such rights upon the registered
     holder thereof. Only one person shall be recognized as the depositor of any
     specific share warrant.

27.  With the exception of those cases which have been explicitly set forth
     within the framework of these Articles of Association, no person, by virtue
     of his or her being the holder of a bearer share warrant, shall be entitled
     to sign a demand for a convocation of a General Meeting of the Company, and
     no such person shall be able to appear at a General Meeting or to vote
     therein, or to make use of any other rights pertaining to a shareholder at
     the General Meetings of the Company. However, the holder of a bearer share
     warrant shall be entitled, from all other aspects, to all of the rights as
     if his or her name were registered in the Register as the owner of the
     shares which are recorded in the share warrant.

28.  The Board of Directors shall be entitled, should it see fit to do so, to
     establish, from time to time, rules and conditions pursuant to which the
     holder of a bearer share warrant which became mutilated, lost or defaced
     shall be registered in the Register as the owner of the shares which had
     been included in the share warrant which became mutilated, lost or defaced.

Increase and Issue of the Registered Capital
--------------------------------------------

29.  (a)  The Company shall be entitled, from time to time, pursuant to a
          resolution to be passed by the General Meeting of shareholders, to
          increase the share capital of the Company, by means of such type and
          in such amount, which shall be divided into shares of such par value,
          as shall be determined in the resolution as stated above.

     (b)  Without derogating from any special rights or privileges which are
          granted to any existing shares in the share capital of the Company,
          the new shares shall be issued pursuant to such terms, subject to such
          reservations, and in accordance with such advantages and rights as
          shall apply to those shares, all as set forth in the resolution
          concerning the issue thereof. The Company shall be entitled to issue
          shares with preferred rights, deferred rights or limiting rights with
          regard to dividends, the return of capital, or participation in
          surplus assets or otherwise- with special rights or without special
          rights, including with or without voting rights.

30.  The Company shall not be obligated to offer any new shares whatsoever to
     the holders of existing shares of any type and kind.

                                       11

<PAGE>

                           Translated from the Hebrew

31.  Unless otherwise set forth in the terms of issue of the shares, or in the
     provisions of these Articles, any capital which shall be obtained by means
     of the creation of new shares shall be deemed to constitute part of the
     original share capital, and shall be subject to the provisions of these
     Articles in all matters concerning calls for payment and installments in
     connection therewith, transfer, endorsement, forfeiture, encumbrance and
     the like.

Change in the Registered Capital
--------------------------------

32.  The Company shall be entitled, from time to time, pursuant to a resolution
     to be passed by the General Meeting of shareholders:

     (a)  To consolidate its share capital or any part thereof, and to divide it
          into shares of par value per share which is higher than that of its
          existing shares; or

     (b)  To subdivide its existing shares, in whole or in part, into shares of
          par value per share which is lower than that of its existing shares,
          subject to that set forth in the provisions of the Law; or

     (c)  To cancel shares with respect to which, as at the date of said
          resolution, no obligation - including a contingent obligation - on the
          part of the Company to issue such shares exists, and to reduce the
          share capital by the amount of the shares canceled as set forth above;
          or

     (d)  To reduce the share capital of the Company and any capital fund, by
          any means which it shall see fit, subject to all of the conditions and
          approvals which shall be required by any law.

                               C. GENERAL MEETINGS
                                  ----------------

33.  The Company shall hold two types of General Meetings of its shareholders:
     "Annual Meetings" and "Special Meetings": An Annual Meeting shall be
     convened once a year, on a date which shall be set by the Chair of the
     Board of Directors or by the Secretary of the Company, but no later than 15
     months after the last Annual Meeting, and in a place which shall be
     determined by the Chair of the Board of Directors or by the Secretary of
     the Company; All of the other General Meetings of the Company shall be
     referred to as "Special Meetings". All of the General Meetings of the
     Company shall be convened in Israel, unless the Company's center of
     management shall have been transferred to another country in accordance
     with the provisions of these Articles.

                                       12

<PAGE>

                           Translated from the Hebrew

34.  Whenever the Board of Directors shall see fit, it shall be entitled to
     convene a Special Meeting according to its resolution. In addition, the
     Board of Directors shall convene such a meeting upon the demand of two
     Directors or one-quarter of the Directors serving in office, and upon the
     demand of one or more shareholders holding not less than five percent of
     the issued capital and one percent of the voting rights in the Company, or
     one or more shareholders holding at least five percent of the voting rights
     in the Company; and, should the Board of Directors fail to do so, the
     demanding director(s) or shareholder(s) shall be entitled to convene the
     meeting himself/themselves, pursuant to the provisions of the Law.

35.  Notice, at least 30 days in advance, shall be published pursuant to the Law
     and shall be delivered to each shareholder who is registered in the
     Register or in the Additional Registers, with regard to each General
     Meeting. The notice shall set forth the agenda and the proposed
     resolutions; should a vote in writing be scheduled, the arrangements with
     regard to the vote in writing shall be stated.

36.  Failure to send notice to any shareholder or failure of any shareholder to
     receive notice, due to an error or as a result of a mishap beyond the
     control of the Company, shall not adversely affect the validity of any
     resolution which shall have been adopted by the General Meeting in
     question.

Deliberations at General Meetings
---------------------------------

37.  The function of the Annual Meeting shall be in accordance with that set
     forth in the Law, and also to receive the Statement of Profit and Loss, the
     Balance Sheet, the usual reports of the Board of Directors and the
     Accountant, and to deliberate upon said reports, to appoint Directors
     pursuant to the provisions of these Articles, to appoint the Accountant, to
     set the salary of the Directors and the Accountant, and to deal with any
     other matter which should be dealt with at an Annual Meeting pursuant to
     these Articles. Any other matter which is discussed at an Annual Meeting,
     and any matter which is discussed at a Special Meeting, shall be deemed a
     special matter.

38.  Two shareholders who are present at a General Meeting, in person or by
     proxy or represented by their Authorized Persons, and who jointly hold
     twenty-five percent or more of the paid-up share capital of the Company,
     shall constitute a legal quorum. No matter shall be discussed at any
     General Meeting unless a legal quorum is present at said meeting at the
     time of commencement of the deliberations.

39.  Should no legal quorum be present half an hour after the time set for the
     General Meeting - whether said meeting is an Annual Meeting or a Special
     Meeting - the

                                       13

<PAGE>

                           Translated from the Hebrew

     meeting shall be adjourned to one week from that day, at the same time and
     at the same place, or at another date, time and place as shall be set forth
     by the Board of Directors in a notice to all of those persons who are
     entitled to receive notice of General Meetings. Should no legal quorum be
     present at the adjourned meeting as well, half an hour after the time set
     for said meeting, any two shareholders present, in person or by proxy, who
     jointly hold twenty percent or more of the paid-up share capital of the
     Company shall constitute a legal quorum and shall be entitled to deliberate
     all of the matters for the purpose of which the meeting was convened.

40.  The Chair of the Board of Directors, or, in his or her absence, the
     Vice-Chair of the Board of Directors, or, in his or her absence, any other
     person who has been appointed for that purpose by the Board of Directors,
     shall serve as Chair at any General Meeting. Should there be no Chair as
     stated above, or should he or she not have arrived at the meeting thirty
     minutes after the time set for said meeting, or should he or she not desire
     to serve as Chair of the meeting, the shareholders present shall elect
     another person from among themselves, and that person shall be the Chair.

41.  The Chair shall be entitled, with the consent of a General Meeting which is
     attended by a legal quorum, to adjourn the meeting from time to time and
     from place to place. However, in the course of the adjourned meeting as
     stated above, there shall be no deliberation on other matters than those
     which could have been discussed at the meeting in the course of which it
     was decided to adjourn. No shareholder shall be entitled to receive any
     notice with regard to the adjournment or with regard to the matters which
     are on the agenda of the adjourned meeting.

42.  At any General Meeting, resolutions shall be voted upon and adopted by a
     show of hands, unless a vote by ballot is demanded - whether before or
     after the announcement of the results of the voting by a show of hands - by
     the Chair (if he or she is eligible to vote) or by at least two
     shareholders who are present, or by one or more shareholders who are
     present, in person or by proxy, and who hold at least five percent of the
     paid-up share capital of the Company. Unless a vote by ballot has been
     demanded as stated above, the announcement by the Chair that the resolution
     has been adopted, or has been adopted unanimously or by a certain majority,
     or has been rejected, or has not been adopted by a certain majority, and a
     comment registered to that effect in the minutes kept by the Company, shall
     constitute prima facie evidence thereof, and there shall be no need to
     prove the number of votes or the relative quota of votes in favor or
     against said resolution.

43.  Without derogating from that set forth above, resolutions of the General
     Meeting, on any subject whatsoever, may also be adopted by way of a vote in
     writing, which shall be expressed in the following form or in any other
     form which shall be approved by the Board of Directors or which shall be
     set forth pursuant to the Law:

                                       14

<PAGE>

                           Translated from the Hebrew

                    " TEVA PHARMACEUTICAL INDUSTRIES LIMITED
                      --------------------------------------

          I the undersigned, ___________ of _______________, in my capacity as a
          shareholder of Teva Pharmaceutical Industries Limited, do hereby vote
          in writing, with ________ ordinary shares which are registered in my
          name, at the General Meeting of shareholders in the Company which
          shall take place on the ___ day of the month of _______ in the year
          _____ and at any adjourned meeting, with regard to the proposed
          resolutions which are set forth below, as follows:
          ......................................................................
          ......................................................................
          Signed this day, the ___ day of the month of ______ in the year ____."

44.  Should a vote by ballot have been duly demanded, the voting shall be held
     at such a time and in such a place as the Chair shall instruct, and it
     shall be permissible to hold the voting immediately, or after recess or an
     adjournment. The results of the vote by ballot shall be deemed as a
     resolution of the General Meeting with regard to which the vote by ballot
     was demanded.

45.  The demand for a vote by ballot shall not impede the continuation of the
     Meeting for the purpose of deliberation of any matter which is on the
     agenda, with the exception of the matter with regard to which the vote by
     ballot was demanded.

46.  A vote by ballot for the purpose of electing the Chair of the Meeting shall
     be neither demanded nor conducted. A vote by ballot with regard to the
     adjournment of the meeting, if demanded, shall be conducted immediately. A
     vote by ballot which has been demanded with regard to any other matter
     shall be held at such a time as the Chair of the Meeting shall instruct.

47.  Should the votes in favor and against be tied, whether the voting is by a
     show of hands or by ballot, the Chair of the Meeting shall be entitled to
     an additional casting vote.

48.  Any resolution of the Company which is adopted at a General Meeting shall
     be deemed a resolution duly adopted if it has been adopted by simple
     majority of the participating votes, as long as there is a legal quorum at
     said meeting, unless another majority is required pursuant to the Law or to
     these Articles.

Votes by the Shareholders
-------------------------

49.  Subject to, and without derogating from, the existing rights or limitations
     with regard to any specific type of shares which constitute part of the
     Company's

                                       15

<PAGE>

                           Translated from the Hebrew

     capital, each shareholder - irrespective of whether the voting is by a show
     of hands or by ballot - shall be entitled to one vote with respect to each
     share held by him or her.

50.  In the case of joint holders of a share, either of the registered
     shareholders who is present, in person or by proxy, at a General Meeting is
     entitled to vote at that Meeting as if he or she were the sole holder of
     the shares jointly registered as stated above. However, should two or more
     joint shareholders be present, themselves or by proxy, at any General
     Meeting, the vote of the partner whose name is listed first in the Register
     shall be the sole allowable vote, and that partner alone shall be entitled
     to vote, whether in person or by proxy, with respect to the share jointly
     registered as stated above.

51.  The shareholders who are eligible to vote may do so in person or by proxy
     or by way of a vote in writing, and if the shareholder is a corporation -
     through an empowered person who shall have been duly appointed for the
     purpose (hereinafter: "Authorized Person"). The document of appointment of
     a proxy shall be drawn up in writing and signed by the appointing person or
     by that person's agent who shall have been duly appointed in writing for
     that purpose. If the shareholder is a corporation, the authorization of an
     Authorized Person shall be drawn up in writing and signed pursuant to the
     Memorandum and Articles of Association of the appointing corporation.

52.  One person may be appointed as proxy for several shareholders.

53.  A proxy or an Authorized Person may also be a person who is not a
     shareholder in the Company.

54.  A document of appointment of a proxy, a power of attorney, a vote in
     writing, a certificate of ownership or any other document pursuant to which
     a document of appointment, a vote in writing, or a certificate of ownership
     is signed, or a copy of any such document, shall be deposited at the
     Registered Office no less than four (4) days before the date and time set
     for the convocation of the Meeting at which the person whose name is set
     forth in the document of appointment shall seek to vote. Should this not be
     done, the document as set forth above shall not be valid unless otherwise
     decided by the Chair of the Meeting.

55.  Should a proxy or an Authorized Person vote in accordance with the terms of
     his or her document of appointment, his or her vote shall be valid, even
     if, prior to the voting, the person who appointed the proxy or the
     Authorized Person dies or becomes insane, or the appointment is canceled,
     or the share by virtue of which the proxy or the Authorized Person voted is
     transferred to another person, unless notice in writing with regard to the
     demise, insanity, cancellation or transfer as set

                                       16

<PAGE>

                           Translated from the Hebrew

     forth above, , shall have been given, prior to the voting to the Secretary
     of the Company or to the Chair of the Meeting at which the voting took
     place.

56.  A shareholder who is incompetent, or with regard to whom a court of law
     which is competent to do so has issued a guardianship order, shall be
     entitled to vote, whether by a show of hands or by ballot, through his or
     her guardian or through another person, fulfilling the role of such a
     guardian, who has been appointed for this purpose by a court of law as
     stated above, and any such guardian or other person as stated above shall
     be entitled to vote whether personally or by proxy.

57.  The document of appointment of a proxy or an Authorized Person shall be
     drawn up in the following form or in any other form which shall be approved
     by the Board of Directors or the Secretary of the Company.

                     "TEVA PHARMACEUTICAL INDUSTRIES LIMITED
                     ---------------------------------------

          I the undersigned, ___________ of _______________, in my capacity as a
          shareholder of Teva Pharmaceutical Industries Limited, do hereby
          appoint ___________ of _______________ as my proxy, to vote in my name
          and in my stead, at the General Meeting of shareholders in the Company
          which shall take place on the ___ day of the month of _______ in the
          year _____ and at any adjourned meeting.

          Signed  this  day,  the ___ day of the month of ______ in the
          year _____, _____________"

                            D. THE BOARD OF DIRECTORS
                               ----------------------

58.  (a)  The maximum number of Directors of the Company shall be 16 Directors
          who shall be elected pursuant to Article 60 below, plus the number of
          external Directors who shall be appointed pursuant to the Law. The
          Board of Directors is entitled, at any time and from time to time, to
          change the maximum number of Directors as stated above, subject to a
          majority of three-quarters of the persons voting, as long as the
          number of the Directors who are voting in favor of said resolution is
          no fewer than nine, by changing the number of Directors as set forth
          in Article 60 (b) below to any number that is not less than 15 and
          whose division by 3 is an integer. Should the Board of Directors have
          changed the number of Directors as set forth above, the number of
          members of each of the groups set forth in Articles 60 (c) and 60 (d)
          below shall be changed accordingly.

                                       17

<PAGE>

                           Translated from the Hebrew

     (b)  The minimum number of Directors on the Board of Directors shall be
          three (3).

59.  (a)  A Director shall not be required to hold any shares whatsoever in the
          Company.

     (b)  A corporation is not qualified to serve as a Director of the Company.

     (c)  The majority of the members of the Board of Directors shall be
          residents of Israel, unless the Company's center of management shall
          have been transferred to another country in accordance with the
          provisions of these Articles.

Appointment and Retirement from Office
--------------------------------------

60.  (a)  The Board of Directors shall be entitled, at any time and from time to
          time, to appoint the CEO as a member of the Board of Directors.

          Should the Board of Directors not determine the term of office of the
          CEO as a Board Member, such CEO shall serve as a member of the Board
          until the next annual meeting and may be re-elected.

     (b)  The Annual Meeting shall be entitled to elect, in the manner and for
          the periods of time which are set forth below in this Article, 15
          Directors, who shall be divided into three equal groups. The
          provisions of this Article set forth below shall not apply to the CEO,
          who serves as a member of the Board of Directors by virtue of the
          provisions of subsection (a) above, in the event that he so serves,
          nor to the external Directors who are appointed pursuant to the
          provisions of the Law.

     (c)  At the Annual Meeting, which shall take place in 2002, at which the
          Directors shall be elected pursuant to the provisions of this Article,
          in its present wording, the Directors shall be elected and/or shall
          continue to serve, as relevant, for various periods of time, as
          follows:

          1.   The members of the first group of 5 Directors shall be elected to
               serve in office on a continuous basis, until the third Annual
               Meeting which shall be held following the date of their election
               (hereinafter: "Three-Year Term").

                                       18

<PAGE>

                           Translated from the Hebrew

          2.   The members of the second group of 5 Directors who have been
               elected at the Annual Meeting, which took place in 2001, and
               whose serve is due to conclude at the third Annual Meeting,
               following the date of their election.

          3.   The members of the third group of 5 Directors shall be elected to
               serve in office on a continuous basis until the first Annual
               Meeting which shall be held following the date of their election.

     (d)  At each Annual Meeting following the Annual Meeting that will take
          place in 2002, the General Meeting shall be entitled to elect up to 5
          Directors, who shall be elected for a Three-Year Term to replace the
          Directors whose term in office has expired as of that Annual Meeting,
          and so on ad infinitum, so that the Directors who shall be elected as
          stated above shall serve for Three-Year Terms, and so that, each year,
          the term in office of one of the groups of Directors shall expire.

     (e)  The nomination of candidates for election as Directors may be made by
          the Board of Directors, up to the date of the Annual Meeting;
          alternatively, it may be made by any shareholder, provided that the
          nomination proposed by that shareholder, in writing, shall arrive at
          the Registered Office, within ten days from the publication of advance
          notice of the Annual Meeting in accordance with Article 35 above. The
          above shall apply provided that any nomination by a shareholder as set
          forth above shall include all of the following particulars: (i) the
          name and address of the nominating shareholder and a detailed listing
          of the number of shares held by him or her; (ii) particulars with
          regard to the candidate(s) for appointment as Director(s), such as
          would have been required in a Notice of Position filed on behalf of
          the Board of Directors with regard to the nomination of candidate(s)
          to the Board of Directors; (iii) approval attesting to the consent of
          the candidate(s) to serve on the Board of Directors of the Company;
          (iv) a detailed listing of all of the relationships and understandings
          which exist between the nominating shareholder and the candidate(s) on
          his or her behalf; (v) a notice stating whether the nominator intends
          to send the remaining shareholders a Notice of Position with regard to
          the appointment of the candidate(s) on his or her behalf.

     (f)  Should the number of members of any group of the groups listed in
          subsection (c) above become less than the maximum number of members
          (as this number shall have been changed by the Board of Directors
          pursuant to Article 58 (a) above - should it so have been changed),
          the Board of Directors shall be entitled, at any time and from time to
          time, to appoint, within the framework of the maximum number as
          stated, Directors who shall

                                       19

<PAGE>

                           Translated from the Hebrew

          serve until the expiry of the term of office of the members of the
          group in question.

61.  The Directors who are serving in office shall be entitled to act even if a
     vacancy occurs on the Board of Directors. However, should the number of
     Directors, at the time in question, become less than the minimum set forth
     in these Articles, the remaining Directors or the remaining Director shall
     be entitled to act for the purpose of filling the vacancies which shall
     have occurred on the Board of Directors or of convening a General Meeting,
     but not for any other purpose.

62.  Any Director who shall have retired from his or her office shall be
     qualified to be re-appointed - unless a limitation affecting his or her
     appointment as a Director shall exist pursuant to the provisions of the
     Law.

63.  (a)  The office of a Director shall fall vacant, prior to the expiry of his
          or her term in office, only if:

          (1)  If he or she has died;

          (2)  If he or she has been declared bankrupt or has ceased to make
               payments or has come to a compromise arrangement with his or her
               creditors;

          (3)  If he or she has been declared incompetent or has become mentally
               ill;

          (4)  If he or she has resigned his or her office by way of notice in
               writing to the Company;

          (5)  If he or she has been removed from office pursuant to Article 64
               below;

          (6)  If he or she has been convicted of an offense which, pursuant to
               the provisions of the Law, incurs the expiry of his or her term
               in office;

          (7)  In accordance with a decision by a court of law, pursuant to the
               provisions of the Law.

     (b)  The Board of Directors shall be entitled to appoint, as a replacement
          for a Director whose office has fallen vacant pursuant to subsections
          (1) to (4), (6) and (7) of subsection (a) above, another Director, who
          shall serve in office until the date on which the term in office of
          his or her predecessor would have expired, had said office not fallen
          vacant as stated.

     (c)  Any person or persons who are competent to appoint and/or to elect a
          Director pursuant to the provisions of these Articles shall be
          entitled to determine that the said appointment/election shall enter
          into force at some future date.

                                       20

<PAGE>

                           Translated from the Hebrew

64.  (a)  Should any Director violate a duty of care or a duty of a fiduciary
          duty to the Company, the General Meeting shall be entitled to remove
          that Director from office prior to the expiry of his or her term in
          office (hereinafter: the "Removed Director"), provided that the
          Removed Director shall be given a reasonable opportunity to state his
          or her case before the General Meeting.

     (b)  Should a Director have been removed from office as set forth in
          subsection (a) above, the General Meeting shall be entitled, in the
          same session, to elect another Director in his or her stead. Should it
          fail to do so, the Board of Directors shall be entitled to do so,
          pursuant to the provisions of Article 60 (f) above.

     (c)  Any Director who shall have been appointed by way of a resolution as
          stated in subsection (b) above, shall serve in office for the period
          remaining of the term in office of the Removed Director and shall be
          qualified to be re-appointed.

Remuneration of Directors
-------------------------

65.  (a)  The remuneration of the Directors shall be set in an amount which
          shall be determined by the General Meeting from time to time, and this
          remuneration shall be distributed among the Directors pursuant to the
          instructions of the General Meeting, or, in the absence of said
          instructions, in equal shares. The Directors shall be entitled to be
          reimbursed, for board and lodging at a reasonable rate, and for other
          expenses which they shall expend for the purpose or in the course of
          performance of their duties as Directors, including travel expenses to
          and from sessions of the Board of Directors.

     (b)  Should any of the Directors, pursuant to a resolution of the Board of
          Directors, perform special duties or services over and above his or
          her regular duties as a Director, the Board of Directors shall be
          entitled to pay said Director a remuneration, and said remuneration
          shall be paid to said Director in the form of a salary, a fee, or in
          any other manner which shall be agreed to by the Board of Directors.

     (c)  A Director shall be entitled to perform another duty or to hold
          another office in the Company (except for the office of Accountant,
          Internal Auditor or attorney for the Company) on a salaried basis, in
          addition to his or her duties as a Director, pursuant to such terms,
          with regard to salary and other matters, as shall be determined by the
          Board of Directors.

                                       21

<PAGE>

                           Translated from the Hebrew

Powers and Duties of the Board of Directors
-------------------------------------------

66.  The Board of Directors shall formulate Company policy and shall supervise
     the performance of the duties and operations of the CEO. Any power of the
     Company which has not been conferred upon another organ pursuant to the Law
     or to these Articles may be exercised by the Board of Directors. However,
     this power of the Board of Directors shall be subject to the provisions of
     these Articles and the provisions of the Law, provided that no provision
     which shall be enacted by the Company shall revoke the validity of any
     action which had previously been taken by the Board of Directors and which
     would have been legal, had it not been for that set forth in this Article.

Operations of the Board of Directors
------------------------------------

67.  The Board of Directors shall meet for the purpose of conducting its
     business, and shall be entitled to adjourn its sessions from time to time
     and to establish the procedure of said sessions as it shall see fit.

68.  Any question which shall arise in any of the sessions of the Board of
     Directors shall be settled by simple majority of all of the Directors who
     are voting at that session, unless otherwise set forth by another provision
     of these Articles. Should the votes be tied, the Chair of the Board of
     Directors shall be entitled to an additional casting vote.

69.  The legal quorum which shall be required for a session of the Board of
     Directors shall be a majority of the members of the Board of Directors then
     serving in office, but shall not be fewer than three Directors, unless
     otherwise determined in these Articles.

70.  At any session of the Board of Directors at which a legal quorum is
     present, the participants in that session shall be entitled to exercise all
     of the powers which are vested in the Board of Directors.

71.  The Board of Directors shall be entitled to elect a Chair of the Board of
     Directors and to determine his or her term in office, provided that the CEO
     shall not serve as Chair of the Board of Directors other than pursuant to
     the provisions of the Law, provided that the CEO serves as a Director at
     the same time and throughout the period he serves as Chairman of the Board.
     Should the Board of Directors not determine the term in office of the Chair
     of the Board of Directors, said Chair shall serve until the next Annual
     Meeting and may be re-elected. Should no Chair of the Board of Directors be
     elected, or should the Chair not be present at any session

                                       22

<PAGE>

                           Translated from the Hebrew

     within 30 minutes after the time set for said session, the Board of
     Directors shall select one of its members who shall serve as Chair of the
     session.

72.  The Chair of the Board of Directors shall be entitled to convene a session
     of the Board of Directors at any time and pursuant to the provisions of the
     Law, or according to a request by the CEO.

     Should the Chair of the Board of Directors fail to convene a session of the
     Board of Directors within 21 days of the date on which a demand was
     presented to him or her by any person entitled to present a demand as
     stated above (hereinafter: the "Demanding Party"), or within 21 days of the
     date on which he or she shall have been demanded to do so pursuant to the
     provisions of the Law, any one of the Demanding Parties shall be entitled
     to convene a session of the Board of Directors pursuant to the provisions
     of the Law.

73.  Notice of sessions of the Board of Directors shall be sent by mail, or
     shall be delivered by hand or by fax or by telephone or by any other medium
     of communications to all of the Directors, at least three days in advance.
     Said notice shall include a reasonable level of detail with regard to the
     subjects on the agenda.

74.  Failure to send notice to any Director with regard to a session of the
     Board of Directors, due to error, shall not adversely affect the validity
     of any resolution which shall have been adopted by the session in question.

75.  The sessions of the Board of Directors shall be convened in Israel, unless
     the Company's center of management shall have been transferred to another
     country in accordance with the provisions of these Articles. Without
     derogating from that set forth in the opening passage of this Article, the
     Board of Directors shall be entitled: to hold sessions through the use of
     any means of communication; to convene for a session without advance
     notice, provided that this shall be done with the consent of all of the
     Directors; to adopt resolutions even without physically meeting, provided
     that this shall be done with the consent of all of the Directors who are
     eligible to participate in the deliberations and to vote on the matter
     addressed by the resolution; all pursuant to the provisions of the Law.
     Should a resolution be adopted without physically meeting as stated above,
     the Chair of the Board of Directors shall sign the minutes pertaining to
     the resolutions, and there shall be no need to append the signatures of the
     remaining Directors to said minutes.

                                       23

<PAGE>

                           Translated from the Hebrew

Committees of the Board of Directors
------------------------------------

76.  (a)  The Committees of the Board of Directors shall be composed of one or
          more Directors. The Chair of the Board of Directors shall be entitled,
          from time to time, to join any Committee of the Board of Directors, as
          a member of said Committee. The Board of Directors shall be entitled,
          from time to time, to transfer any of its powers to the Committees of
          the Board of Directors. Notwithstanding, the Board of Directors shall
          not be entitled to delegate any of its powers to the Committees as
          stated above, other than for the purpose of recommendation only, with
          regard to the following topics:

          (1)  Determining general Company policy;

          (2)  Distribution, other than by way of purchase, of shares of the
               Company in accordance with the framework previously set forth by
               the Board of Directors;

          (3)  Establishing the position of the Board of Directors in a matter
               which requires the approval of the General Meeting, or stating an
               opinion with regard to a special purchase offer;

          (4)  The appointment of Directors, if the Board of Directors is
               entitled to appoint them;

          (5)  The issue of shares or of securities which are convertible to
               shares or which may be realized as shares, or of a series of
               bonds, other than the issue of shares following the realization
               or conversion of Company securities;

          (6)  Approval of financial statements;

          (7)  Approval by the Board of Directors for transactions and
               operations which require approval by the Board of Directors,
               pursuant to Sections 255, 268 to 270 and 272 to 275 of the Law.

          To preclude all doubt, the Board of Directors is entitled to transfer
          its power to authorize a transaction which is not irregular and which
          complies with that set forth in Section 270 (1) of the Law, to a
          Committee of the Board of Directors.

     (b)  In spite of that which has been set forth in subsection (a), above,
          the Board of Directors shall be entitled to delegate any of its powers
          to the Committees of the Board of Directors, pursuant to the
          provisions of the Law.

                                       24

<PAGE>

                           Translated from the Hebrew

     (c)  Any Committee which has been composed as stated above shall be
          obligated, when making use of the powers vested in it, to comply with
          all of the rules which shall be set forth by the Board of Directors.
          The members of a Committee shall continue to serve in office until
          their replacements shall have been duly appointed or elected pursuant
          to these Articles.

77.  The Board of Directors shall be entitled to appoint, for each Committee of
     the Board of Directors, a permanent Chair from among the members of that
     Committee. Should the Chair not be present within 30 minutes of the time
     set for a Committee session, or should there be no Chair of the Committee,
     those present at the session shall be entitled to elect a member from among
     themselves who shall serve as Chair of the session.

78.  The provisions of these Articles with regard to the sessions and procedures
     of the Board of Directors shall also apply, mutatis mutandis, to sessions
     of any Committee of the Board of Directors, with the exception of the
     provisions of the closing passage of Article 68 and the opening passage of
     Article 75, unless otherwise determined in the Law or in these Articles.

Audit Committee
---------------

79.

     (a)  The Board of Directors shall appoint an Audit Committee, pursuant to
          the provisions of the Law.

     (b)  The External Directors shall be members of the Audit Committee,
          pursuant to the provisions of the Law.

Signature and Minutes
---------------------

80.  The Company shall appoint, from time to time, a person whose signature, or
     persons whose signatures, together with the stamp of the Company or the
     printed name of the Company, shall bind the Company. This shall apply,
     whether generally or to a specific matter or specific matters, as shall be
     determined by the Company..

81.  The minutes of the Company shall include the following details:

     (a)  The appointment of any officers who shall have been appointed by the
          Board of Directors.

                                       25

<PAGE>

                           Translated from the Hebrew

     (b)  The names of the Directors who are present at any session of the Board
          of Directors and at any session of a Committee of the Board of
          Directors.

     (c)  The resolutions of the Board of Directors and the main points of the
          deliberations of the General Meetings and the sessions of the Board of
          Directors and of all of the Committees of the Board of Directors.

     The minutes of any such session, provided that they shall be seen to have
     been signed by the Chair of that session or by the Chair of the subsequent
     session of the same entity, shall be deemed to constitute prima facie
     evidence of the correctness of all of the matters set forth therein.

82.  All of the operations which are performed in good faith by the Board of
     Directors or by a Committee of the Board of Directors, or by any person
     acting as a Director, shall be valid even if it shall subsequently be found
     that there was a deficiency in the appointment of such an entity or of such
     a Director, or if any or all thereof shall be deficient, just as if each of
     said entity or Director had been duly appointed and had been qualified to
     act , as required by the circumstances of the case at hand.

Director-Emeritus
-----------------

83.  The Board of Directors shall be entitled, from time to time, to appoint a
     person who does not hold any position in the Company and who has served as
     a Director of the Company in the past, by way of an honorary appointment,
     as an advisor to the Board of Directors on such matters as shall be set
     forth for that purpose, from time to time, by the Board of Directors
     (hereinafter: "Director-Emeritus"). A Director-Emeritus shall not be an
     officer and shall not have any powers or duties vis-a-vis the Company, the
     Board of Directors, or the Company's shareholders, employees or creditors.
     Without derogating from the generality of that stated above, a
     Director-Emeritus shall not be obligated to give advice or to express an
     opinion in any matter whatsoever, even if he or she shall be asked to do so
     by the Board of Directors; a recommendation by a Director-Emeritus shall
     have no binding weight vis-a-vis the Board of Directors in any way; and a
     Director-Emeritus shall be exempt in advance from any liability which he or
     she might otherwise have incurred, with regard to damage as a result of the
     breach of the duty of care vis-a-vis the Company, the Board of Directors,
     or the Company's shareholders, employees or creditors.

                                       26

<PAGE>

                           Translated from the Hebrew

                                     E. CEO
                                        ---

84.  (a)  The Board of Directors shall appoint, from time to time, a person who
          shall serve as the CEO of the Company, for such a duration and
          pursuant to such terms, including terms with regard to remuneration
          and/ or benefits, as the Board of Directors shall see fit.

     (b)  The Board of Directors is entitled to terminate the term in office of
          the CEO, at any time and for any reason whatsoever.

     (c)  The CEO shall be a resident of Israel throughout the entire duration
          of his or her term in office, unless the Company's center of
          management shall have been transferred to another country in
          accordance with the provisions of these Articles.

     (d)  The CEO shall be responsible for the day to day management of the
          affairs of the company, within the framework of the policy that has
          been set forth by the Board of Directors, subject to its guidelines,
          and all in accordance with the provisions of the law.

85.  The Board of Directors shall be entitled, from time to time, as it shall
     see fit, to delegate to the CEO any of the powers which have been vested in
     the Board of Directors, with the exception of those which have been
     exclusively conferred upon the Board of Directors and may not be delegated
     pursuant to the provisions of the Law. Moreover, the Board of Directors
     shall be entitled, from time to time, to restrict the delegation of powers,
     both with regard to the duration thereof and with regard to the purposes
     for which they shall be used, and to limit them to specific areas and to
     make them contingent upon specific conditions, all as the Board of
     Directors shall see fit. At the time of delegation of powers, as stated
     above, to the CEO, the Board of Directors shall be entitled to determine
     that said delegation shall be parallel to, or shall supplant, the
     respective operation of the Board of Directors. The Board of Directors
     shall be entitled, from time to time, to rescind or to modify the
     delegation of any power which shall have been delegated pursuant to this
     Article.

                                       27

<PAGE>

                           Translated from the Hebrew

                  F. DIVIDEND, RESERVE FUND AND CAPITALIZATION
                    ------------------------------------------

Dividend
--------

86.  The Company shall be entitled to distribute a dividend pursuant to the
     provisions of the Law, and no dividend shall bear interest; each dividend
     shall be determined and settled in consideration of the rights of the
     shareholders, if any, whose shares shall bear special rights with regard to
     dividends. Unless the rights are attached to any shares or unless otherwise
     stated in the terms of issue thereof, shares which have been paid up, in
     whole or in part, after the beginning of the financial year in respect of
     which the dividend is paid shall entitle the holders thereof to a dividend
     in a manner proportional to the amount which has been paid up, or credited
     as having been paid up, on the par value of said shares and to the date of
     payment thereof (pro rata temporis).

87.  The Company shall be entitled, at a General Meeting, to declare an annual
     dividend which shall be paid to the shareholders. No annual dividend shall
     be declared which is larger than that which was proposed by the Board of
     Directors; however, the Company shall be entitled, at a General Meeting, to
     declare an annual dividend which is smaller than that which was proposed by
     the Board of Directors.

88.  A General Meeting which declares a dividend shall be able to adopt a
     resolution stating that the dividend in question shall be paid, in whole or
     in part, by means of the distribution of the Company's assets, in bonds of
     the Company or in shares, or in any other manner.

89.  The Board of Directors shall be entitled, from time to time, to declare the
     distribution of an interim dividend to the shareholders, as the Board of
     Directors shall deem justified, pursuant to the situation of the Company
     and the provisions of the Law, provided that the first Annual Meeting which
     shall take place after the date of adoption of the resolution by the Board
     of Directors as stated above shall approve the resolution retroactively.
     The Board of Directors shall be entitled to declare the distribution of an
     interim dividend in cash or in any other manner.

90.  The right to a dividend with respect to nominative shares, which has been
     declared by the Company, shall be determined in accordance with that
     recorded in the Register as of the date of record (X-Date), according to
     the declaration.

91.  Unless otherwise specified, it shall be permissible to pay any dividend by
     check or bank transfer or payment order, which shall be sent according to
     the registered address of the shareholder or the person entitled to the
     dividend (and in the case of joint registered holders, to the shareholder
     whose name is first mentioned in the

                                       28

<PAGE>

                           Translated from the Hebrew

     Register with regard to the joint ownership), or in any other manner. Any
     such check shall be drawn up to the order of the person to whom it is sent.
     The receipt of the dividend by the person who is registered in the Register
     as the holder of any share - or, in the case of joint holders, by any of
     the joint shareholders - shall constitute full, final and absolute release
     with regard to all payments which shall have been made with respect to said
     share. The Company shall be entitled to invest all of the dividends which
     have not been claimed for a period of one year after having been declared,
     or to use them in any other manner, for the benefit of the Company, until
     said amounts are claimed.

Reserve Fund
------------

92.  The Board of Directors shall be entitled, from time to time, to allocate
     amounts out of the profits of the Company which may be distributed in the
     form of dividends, and to transfer such amounts, as it shall see fit, to an
     account of a fund or funds as it shall see fit. All of the amounts which
     shall be so transferred and so credited to the account of such a fund shall
     serve, at the discretion of the CEO, after having consulted with the CFO,
     and subject to the approval of the Board of Directors, for special purposes
     or for the gradual settlement of any debt or obligation of the Company or
     for the repair or maintenance of any of the Company's assets or for the
     coverage of losses from the sale of assets or investments or the
     depreciation in value thereof (whether on a one-time basis or in a general
     manner), or, subject to the prior approval of the Company at a General
     Meeting, for the supplementing or payment of the dividend or for any other
     purpose which shall be appropriate for use of the Company's profits.

93.  All of the amounts which shall have been transferred and credited to the
     account of any fund or funds may be used, so long as they have not been
     used for any other purpose pursuant to Article 92 above, for the purpose of
     investment, together with any other monies of the Company, in the ordinary
     course of business of the Company, and there shall be no need to
     distinguish between these investments and the investments of other monies
     of the Company.

Capitalization
--------------

94.  (a)  The Company shall be entitled, at any time and from time to time, to
          adopt a resolution stating that any part of the amounts which are
          credited at that time to any capital fund or held by the Company as
          profits which may be distributed, shall be capitalized and shall be
          released for distribution among the shareholders who would have been
          entitled to receive them, had they been distributed as a dividend, and
          in the same proportion, provided that said amounts shall not be paid
          in cash, but shall be used to fully pay up - whether

                                       29

<PAGE>

                           Translated from the Hebrew

          according to their par value or with the addition of any premium which
          shall be determined by the Company - shares which have not yet been
          issued or bonds of the Company, which shall be issued and distributed
          among said shareholders and in such a proportion, as shares or bonds
          which have been fully paid up.

     (b)  (1)  In any case in which the Company shall issue bonus shares by way
               of capitalization of profits or funds, at a time where there
               shall be in circulation any securities which have been issued by
               the Company and which confer upon the holders thereof the right
               to convert said securities to shares in the share capital of the
               Company or options to purchase shares in the share capital of the
               Company (the rights of conversion or the options as stated above
               shall be referred to hereinafter as "the Rights"), the Board of
               Directors shall be entitled (in cases where the Rights, or any
               part thereof, shall not be adjusted in any other manner in
               accordance with the terms of issue thereof) to transfer to a
               special fund (which shall be referred to by whatever designation
               shall be resolved by the Board of Directors, and which shall be
               referred to hereinafter as "the Special Fund") an amount which
               shall be equal to the nominal amount of the share capital which
               those persons entitled to all or part of the Rights would have
               received, as a result of the issue of the bonus shares, had they
               exploited their Rights prior to the date of record which sets
               forth the right to receive bonus shares, including the right to
               fractions of shares, and, in the case of a second or additional
               distribution of bonus shares - including eligibility which
               results from any prior distribution of bonus shares.

          (2)  In any case in which the Company shall issue new shares and/or,
               in lieu of such issue, shall cause its subsidiary to transfer
               existing shares in the Company which are held by said subsidiary,
               as a result of the exploitation of said Rights by the persons
               entitled thereto, in cases where the Board of Directors
               implemented a transfer to the Special Fund with respect to those
               Rights pursuant to subsection (1) above, the Company shall issue
               to any such holder, in addition to the shares to which he or she
               is entitled as a result of the exploitation of his or her Rights,
               a number of fully paid-up shares whose total par value shall be
               equal to the amount which was transferred to the Special Fund in
               respect of his or her rights. This shall be done by means of
               capitalization of an appropriate amount from the Special Fund,
               and the Board of

                                       30

<PAGE>

                           Translated from the Hebrew

               Directors shall be entitled to decide, at its sole discretion, on
               the manner of handling the Rights to fractions of shares.

          (3)  Following any transfer to the Special Fund, should the Rights
               expire, or should the period set forth for exploitation of the
               Rights with regard to which the transfer was implemented come to
               an end, before said Rights have been exploited, any amount which
               was transferred to the Special Fund with regard to the
               aforementioned unexploited Rights shall be released from the
               Special Fund, and the Company shall be entitled to handle any
               amount which shall be so released in any manner in which it would
               have been entitled to handle said amount, had it not been
               transferred to the Special Fund.

95.  For the purpose of implementation of any resolution which shall be adopted
     on the basis of Articles 88 or 94 of these Articles, the Board of Directors
     shall be entitled, at its sole discretion, to settle, as it shall see fit,
     any difficulty (if any) which shall arise with regard to the distribution.
     To this end, the Board of Directors shall be entitled to issue partial
     certificates, to determine the value of the distribution of certain assets,
     and to determine that shareholders shall receive payment on the basis of
     the value which shall have been determined as stated above, or that
     fractions at a value of less than 0.1 New Israeli Shekel shall not be taken
     into account, in order to adjust the rights of the parties. In addition,
     the Board of Directors shall be entitled to place all monies and specific
     assets in trust, in the hands of trustees, on behalf of those persons who
     are entitled to receive the dividend or the monies which have been
     capitalized, all as the Board of Directors shall see fit.

                             G. AUDITING AND NOTICES
                                --------------------

Auditing and Internal Auditor
-----------------------------

96.  The Annual Meeting shall be entitled to appoint the Accountant, who shall
     serve for a period which shall not extend beyond the third Annual Meeting
     after that at which he or she was appointed. At least once a year, the
     Accountant shall audit the Company's accounts and shall express his or her
     opinion as to the correctness of the Statement of Profit and Loss and the
     Balance Sheet.

97.

     (a)  The Board of Directors of the Company shall appoint an Internal
          Auditor, pursuant to the provisions of the Law.

                                       31

<PAGE>

                           Translated from the Hebrew

     (b)  The Board of Directors is entitled to terminate the term of office of
          the Internal Auditor, pursuant to the provisions of the Law.

     (c)  The organizational superiors of the Internal Auditor shall be the CEO
          jointly with the Chair of the Board of Directors.

Notices
-------

98.  The Company shall be entitled to publish notices to its shareholders in two
     daily newspapers and/or as stipulated pursuant to the Law. The Company
     shall be entitled to deliver notices to its shareholders by any of the
     alternative means set forth hereinafter: delivery by hand; dispatch by mail
     to the address appearing in the Register or the Additional Registers;
     dispatch by facsimile to the fax number appearing in the Register or the
     Additional Registers, or to any number which shall have been given to the
     Company for this purpose by any shareholder; dispatch by e-mail to the
     e-mail address registered for that purpose in the Register or the
     Additional Registers; or in any other manner as shall be determined by the
     Company.

99.  Any and all notices which are to be delivered to a shareholder shall be
     given, with regard to jointly held shares, to the person whose name is
     first mentioned in the Register, and any notice thus given shall be deemed
     sufficient notice to the holders of the share.

100. The Company shall be entitled to give notice to persons who are entitled to
     any share as a result of the demise or bankruptcy of the shareholder, by
     sending said notice by any of the alternative ways set forth in Article 98
     above according to the address, fax number or e-mail address (if any) given
     for that purpose by said persons, or by delivering the notice in the same
     way in which it would have been delivered (until such details shall have
     been given), had it not been for the demise or bankruptcy as stated above.

101. Any notice or other document which has been sent by mail or in any other
     manner which is permitted pursuant to these Articles shall be deemed to
     have been delivered to its destination at the time of its receipt by the
     addressee, or four business days after the date on which it was sent as
     stated above (whichever is earlier). A declaration in writing, signed by
     the person delivering the notice or the document, to the effect that a
     letter containing said notice or said document was addressed to the correct
     address and duly delivered to a post office, shall constitute absolute
     evidence to that effect.

                                       32

<PAGE>

                           Translated from the Hebrew

                 H. EXEMPTION, INSURANCE AND INDEMNIFICATION OF
                    -------------------------------------------
                                    OFFICERS
                                    --------

102. Subject to the provisions of the Law, the Company shall be entitled to
     engage in a contract for insurance of the liability of any officer of the
     Company, in whole or in part, as a result of any of the following:

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

     (b)  Breach of a fiduciary duty vis-a-vis the Company, provided that the
          officer acted in good faith and had reasonable grounds to believe that
          the action in question would not adversely affect the Company;

     (c)  Financial liability which shall be imposed upon said officer in favor
          of another person as a result of any action which was performed by
          said officer in his or her capacity as an officer of the Company.

103. Subject to the provisions of the Law, the Company shall be entitled to
     indemnify any officer of the Company, as a result of any of the following:

     (a)  Financial liability which shall be imposed upon said officer in favor
          of another person by virtue of a decision by a court of law, including
          a decision by way of compromise or a decision in arbitration which has
          been confirmed by a court of law, as a result of any action which was
          performed by said officer in his or her capacity as an officer of the
          Company.

     (b)  Reasonable expenses with regard to litigation, including legal fees,
          which said officer shall have expended or shall have been obligated to
          expend by a court of law, in any proceedings which shall have been
          filed against said officer by or on behalf of the Company or by
          another person, or with regard to any criminal charge of which said
          officer was acquitted, or with regard to any criminal charge of which
          said officer was convicted which does not require proof of criminal
          intent, all as a result of any action which was performed by said
          officer in his or her capacity as an officer of the Company.

     All of the above shall apply, provided that the obligation to
     indemnification shall be limited to the types of events which, in the
     opinion of the Board of Directors, could have been foreseen at the time
     that the obligation to indemnification was given, and to the amount
     determined by the Board of Directors as reasonable under the circumstances
     of the case.

                                       33

<PAGE>

                           Translated from the Hebrew

104. Subject to the provisions of the Law, the Company shall be entitled to
     indemnify any officer of the Company retroactively, for any liability or
     expenditure as set forth in Article 103 above, which was imposed upon said
     officer as a result of any action which was performed by said officer in
     his or her capacity as an officer of the Company.

105. Subject to the provisions of the Law, the Company shall be entitled, in
     advance, to exempt any officer of the Company from liability, in whole or
     in part, with regard to damage incurred as a result of the breach of duty
     of care vis-a-vis the Company.

                                I. MISCELLANEOUS
                                   -------------

Amendment of the Articles of Association
----------------------------------------

106. (a)  The Company shall be entitled to modify any of the provisions of this
          Article and any of the provisions of Articles 3, 33 (closing passage),
          58, 59, 60, 68, 75 (opening passage) and 84 above, by way of a
          resolution to be adopted at a General Meeting by a majority of
          eighty-five percent of the votes at that session, unless a lower
          percentage shall have been established by the Board of Directors, by a
          majority of three-quarters of those persons voting, at a session of
          the Board of Directors which shall have taken place prior to that
          General Meeting.

     (b)  The Company shall be entitled to modify the remaining provisions of
          these Articles (which are not included in the list set forth in
          subsection (a) above) by way of a resolution to be adopted at a
          General Meeting by a majority of three-quarters of the votes at that
          session, unless a lower percentage shall have been established by the
          Board of Directors, by a majority of three-fourths of the persons
          voting, at a session of the Board of Directors which shall have taken
          place prior to that General Meeting.

Special Purchase Offer
----------------------

107. Notwithstanding that which has been set forth within the framework of the
     regulations that have been promulgated by virtue of the Law, a special
     offer to purchase company shares shall be governed by the provisions of
     Sections 328 to 334 of the Law.

                                       34

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