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<SEC-DOCUMENT>0000910680-06-001151.txt : 20061206
<SEC-HEADER>0000910680-06-001151.hdr.sgml : 20061206
<ACCEPTANCE-DATETIME>20061206122634
ACCESSION NUMBER:		0000910680-06-001151
CONFORMED SUBMISSION TYPE:	SC 13D/A
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20061206
DATE AS OF CHANGE:		20061206
GROUP MEMBERS:		BEIT BELLA LTD.
GROUP MEMBERS:		BEIT FEDERMANN LTD.
GROUP MEMBERS:		BEIT YEKUTIEL LTD.
GROUP MEMBERS:		FEDERMANN ENTERPRISES LTD.
GROUP MEMBERS:		HERIS AKTIENGESELLSCHAFT

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ELBIT SYSTEMS LTD
		CENTRAL INDEX KEY:			0001027664
		STANDARD INDUSTRIAL CLASSIFICATION:	AIRCRAFT PART & AUXILIARY EQUIPMENT, NEC [3728]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			L3
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		SC 13D/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	005-50156
		FILM NUMBER:		061259436

	BUSINESS ADDRESS:	
		STREET 1:		ADVANCED TECHNOLOGY CENTER
		STREET 2:		PO BOX 539
		CITY:			HAIFA, ISRAEL
		STATE:			L3
		ZIP:			31053
		BUSINESS PHONE:		01197248316626

	MAIL ADDRESS:	
		STREET 1:		ADVANCED TECHNOLOGY CENTER
		STREET 2:		PO BOX 539
		CITY:			HAIFA, ISRAEL
		STATE:			L3
		ZIP:			31053

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FEDERMANN MICHAEL
		CENTRAL INDEX KEY:			0001260118

	FILING VALUES:
		FORM TYPE:		SC 13D/A

	BUSINESS ADDRESS:	
		STREET 1:		HAYARKON 87 TEL AVIV
		STREET 2:		TEL AVIV
		CITY:			ISRAEL
		STATE:			L3
		ZIP:			63432
</SEC-HEADER>
<DOCUMENT>
<TYPE>SC 13D/A
<SEQUENCE>1
<FILENAME>sc13dafedd112706.htm
<DESCRIPTION>AMENDMENT NO. 5
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>


<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>SECURITIES AND
EXCHANGE COMMISSION<BR>
WASHINGTON, D.C. 20549 </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>SCHEDULE 13D </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>(AMENDMENT NO. 5) </FONT></H1>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>INFORMATION TO BE
INCLUDED IN STATEMENTS FILED PURSUANT<BR>TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED
PURSUANT TO RULE 13d-2(a) </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>___________ </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>ELBIT SYSTEMS LTD. </FONT></H1>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Name of Issuer) </FONT></P>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER">
<TR VALIGN="TOP">
     <TD WIDTH="33%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Ordinary Shares, Nominal Value 1.00 New Israeli Shekels<BR>per share</B></FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD WIDTH="34%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="33%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>M3760D101</B></FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Title of class of securities)</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><BR><BR><BR>&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Zvi Firon, Advocate<BR>
M. Firon &amp; Co., Advocates and Notaries<BR>
16 Abba Hillel Silver Road<BR>
Ramat Gan, Israel<BR>
972-3-7540000</B></FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><BR><BR><BR>&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Name, address and telephone number of person authorized to receive notices and communications)</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><BR><B>November 27, 2006</B></FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Date of event which requires filing of this statement)</FONT></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If the filing person has previously
filed a statement on schedule 13G to report the acquisition that is the subject of this
Schedule 13D, and is filing this schedule because of Rules 13d-1(e), 13d-1(f) or 13d-1(g),
check the following box <img src="ballot.jpg">. </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER">
<TR VALIGN="TOP">
     <TD WIDTH="50%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CUSIP No. M3760D101</B> </FONT></TD>
     <TD WIDTH="50%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Page 2</B> </FONT></TD></TR>
</TABLE>
<BR>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0" border=0>
<TR VALIGN="TOP">
     <TD WIDTH="10%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1.</FONT></TD>
     <TD WIDTH="40%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Names of Reporting Persons/I.R.S. Identification Nos. of Above Persons (Entities Only). </FONT></TD>
     <TD WIDTH="30%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="20%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>Michael Federmann</B> </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>2.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Check the Appropriate Box if Member of a Group</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>(a)</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>[X]</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(b)</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">[_]</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>3.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>SEC Use Only </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>4.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Source of Funds </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>BK</B></FONT> </TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>5.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Check if Disclosure of Legal Proceedings Is Required Pursuant to Items
2(d) or 2(e) [_]</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>6.</FONT></TD>
     <TD COLSPAN="2" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Citizenship or Place of Organization</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>Israel</B> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="left" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Number of<BR>Shares </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sole Voting Power</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>-0-</B> </FONT><HR COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="left" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Beneficially<BR>Owned</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shared Voting Power</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>19,128,469<SUP>1</SUP></B> </FONT> <HR COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="left" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By Each <BR>Reporting</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sole Dispositive Power</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>-0-</B> </FONT><HR COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="left" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Person <BR>With</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shared Dispositive Power</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>19,105,448</B> </FONT><HR COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>11.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Aggregate Amount Beneficially Owned by Each Reporting Person</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><BR><B>19,128,469<SUP>1</SUP></B> </FONT> </TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>12.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>[_]</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>13.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Percent of Class Represented by Amount in Row (11) </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>45.50%</B> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>14.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Type of Reporting Person (See Instructions) </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>IN</B> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
</TABLE>
<BR><BR><BR><BR><BR>

<HR WIDTH="200" COLOR="Black" ALIGN="Left" SIZE="1">

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>(1)</SUP></FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
19,128,469 Ordinary Shares beneficially owned by the Reporting Person           consist
of an aggregate 19,105,448 Ordinary Shares beneficially owned by the           Reporting
Person and 23,021 Ordinary Shares held by a wholly owned subsidiary of           the
Issuer (as defined in Item 1 below) which, under Israeli law, are considered
          or, prima facie, deemed to be beneficially owned by the Reporting Person.  </FONT></TD>
</TR>
</TABLE>
<BR>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2 </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>



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<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER">
<TR VALIGN="TOP">
     <TD WIDTH="50%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CUSIP No. M3760D101</B> </FONT></TD>
     <TD WIDTH="50%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Page 3</B> </FONT></TD></TR>
</TABLE>
<BR>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0" border=0>
<TR VALIGN="TOP">
     <TD WIDTH="10%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1.</FONT></TD>
     <TD WIDTH="40%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Names of Reporting Persons/I.R.S. Identification Nos. of Above Persons (Entities Only). </FONT></TD>
     <TD WIDTH="30%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="20%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>Federmann Enterprises Ltd.</B> </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>2.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Check the Appropriate Box if Member of a Group</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>(a)</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>[X]</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(b)</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">[_]</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>3.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>SEC Use Only </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>4.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Source of Funds </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>BK</B></FONT> </TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>5.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Check if Disclosure of Legal Proceedings Is Required Pursuant to Items
2(d) or 2(e) [_]</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>6.</FONT></TD>
     <TD COLSPAN="2" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Citizenship or Place of Organization</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>Israel</B> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="left" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Number of<BR>Shares </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sole Voting Power</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>-0-</B> </FONT><HR COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="left" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Beneficially<BR>Owned</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shared Voting Power</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>19,128,469<SUP>1</SUP></B> </FONT> <HR COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="left" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By Each <BR>Reporting</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sole Dispositive Power</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>-0-</B> </FONT><HR COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="left" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Person <BR>With</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shared Dispositive Power</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>19,105,448</B> </FONT><HR COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>11.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Aggregate Amount Beneficially Owned by Each Reporting Person</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><BR><B>19,128,469<SUP>1</SUP></B> </FONT> </TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>12.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>[_]</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>13.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Percent of Class Represented by Amount in Row (11) </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>45.50%</B> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>14.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Type of Reporting Person (See Instructions) </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>CO</B> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
</TABLE>
<BR><BR><BR><BR><BR>

<HR WIDTH="200" COLOR="Black" ALIGN="Left" SIZE="1">

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>(1)</SUP></FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
19,128,469 Ordinary Shares beneficially owned by the Reporting Person           consist
of an aggregate 19,105,448 Ordinary Shares beneficially owned by the           Reporting
Person and 23,021 Ordinary Shares held by a wholly owned subsidiary of           the
Issuer (as defined in Item 1 below) which, under Israeli law, are considered
          or, prima facie, deemed to be beneficially owned by the Reporting Person.  </FONT></TD>
</TR>
</TABLE>
<BR>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3 </FONT></P>

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<TR VALIGN="TOP">
     <TD WIDTH="50%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CUSIP No. M3760D101</B> </FONT></TD>
     <TD WIDTH="50%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Page 4</B> </FONT></TD></TR>
</TABLE>
<BR>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0" border=0>
<TR VALIGN="TOP">
     <TD WIDTH="10%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1.</FONT></TD>
     <TD WIDTH="40%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Names of Reporting Persons/I.R.S. Identification Nos. of Above Persons (Entities Only). </FONT></TD>
     <TD WIDTH="30%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="20%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>Heris Aktiengesellschaft</B> </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>2.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Check the Appropriate Box if Member of a Group</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>(a)</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>[X]</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(b)</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">[_]</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>3.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>SEC Use Only </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>4.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Source of Funds </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>N/A</B></FONT> </TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>5.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Check if Disclosure of Legal Proceedings Is Required Pursuant to Items
2(d) or 2(e) [_]</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>6.</FONT></TD>
     <TD COLSPAN="2" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Citizenship or Place of Organization</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>Liechtenstein</B> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="left" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Number of<BR>Shares </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sole Voting Power</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>-0-</B> </FONT><HR COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="left" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Beneficially<BR>Owned</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shared Voting Power</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>3,836,458</B> </FONT> <HR COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="left" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By Each <BR>Reporting</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sole Dispositive Power</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>-0-</B> </FONT><HR COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="left" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Person <BR>With</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shared Dispositive Power</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>3,836,458</B> </FONT><HR COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>11.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Aggregate Amount Beneficially Owned by Each Reporting Person</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><BR><B>3,836,458</B> </FONT> </TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>12.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>[_]</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>13.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Percent of Class Represented by Amount in Row (11) </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>9.12%</B> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>14.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Type of Reporting Person (See Instructions) </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>CO</B> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
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     <TD WIDTH="50%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CUSIP No. M3760D101</B> </FONT></TD>
     <TD WIDTH="50%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Page 5</B> </FONT></TD></TR>
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<TR VALIGN="TOP">
     <TD WIDTH="10%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1.</FONT></TD>
     <TD WIDTH="40%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Names of Reporting Persons/I.R.S. Identification Nos. of Above Persons (Entities Only). </FONT></TD>
     <TD WIDTH="30%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="20%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>Beit Federmann Ltd.</B> </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>2.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Check the Appropriate Box if Member of a Group</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>(a)</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>[X]</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(b)</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">[_]</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>3.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>SEC Use Only </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>4.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Source of Funds </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>BK</B></FONT> </TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>5.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Check if Disclosure of Legal Proceedings Is Required Pursuant to Items
2(d) or 2(e) [_]</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>6.</FONT></TD>
     <TD COLSPAN="2" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Citizenship or Place of Organization</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>Israel</B> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="left" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Number of<BR>Shares </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sole Voting Power</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>-0-</B> </FONT><HR COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="left" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Beneficially<BR>Owned</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shared Voting Power</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>19,128,469<SUP>1</SUP></B> </FONT> <HR COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="left" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By Each <BR>Reporting</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sole Dispositive Power</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>-0-</B> </FONT><HR COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="left" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Person <BR>With</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shared Dispositive Power</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>19,105,448</B> </FONT><HR COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>11.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Aggregate Amount Beneficially Owned by Each Reporting Person</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><BR><B>19,128,469<SUP>1</SUP></B> </FONT> </TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>12.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>[_]</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>13.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Percent of Class Represented by Amount in Row (11) </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>45.50%</B> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>14.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Type of Reporting Person (See Instructions) </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>CO</B> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>(1)</SUP></FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
19,128,469 Ordinary Shares beneficially owned by the Reporting Person           consist
of an aggregate 19,105,448 Ordinary Shares beneficially owned by the           Reporting
Person and 23,021 Ordinary Shares held by a wholly owned subsidiary of           the
Issuer (as defined in Item 1 below) which, under Israeli law, are considered
          or, prima facie, deemed to be beneficially owned by the Reporting Person.  </FONT></TD>
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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5 </FONT></P>

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     <TD WIDTH="50%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CUSIP No. M3760D101</B> </FONT></TD>
     <TD WIDTH="50%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Page 6</B> </FONT></TD></TR>
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<TR VALIGN="TOP">
     <TD WIDTH="10%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1.</FONT></TD>
     <TD WIDTH="40%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Names of Reporting Persons/I.R.S. Identification Nos. of Above Persons (Entities Only). </FONT></TD>
     <TD WIDTH="30%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="20%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>Beit Bella Ltd.</B> </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>2.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Check the Appropriate Box if Member of a Group</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>(a)</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>[X]</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(b)</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">[_]</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>3.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>SEC Use Only </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>4.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Source of Funds </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>BK</B></FONT> </TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>5.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Check if Disclosure of Legal Proceedings Is Required Pursuant to Items
2(d) or 2(e) [_]</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>6.</FONT></TD>
     <TD COLSPAN="2" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Citizenship or Place of Organization</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>Israel</B> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="left" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Number of<BR>Shares </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sole Voting Power</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>-0-</B> </FONT><HR COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="left" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Beneficially<BR>Owned</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shared Voting Power</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>19,128,469<SUP>1</SUP></B> </FONT> <HR COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="left" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By Each <BR>Reporting</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sole Dispositive Power</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>-0-</B> </FONT><HR COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="left" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Person <BR>With</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shared Dispositive Power</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>19,105,448</B> </FONT><HR COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>11.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Aggregate Amount Beneficially Owned by Each Reporting Person</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><BR><B>19,128,469<SUP>1</SUP></B> </FONT> </TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>12.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>[_]</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>13.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Percent of Class Represented by Amount in Row (11) </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>45.50%</B> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>14.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Type of Reporting Person (See Instructions) </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>CO</B> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
</TABLE>
<BR><BR><BR><BR><BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>(1)</SUP></FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
19,128,469 Ordinary Shares beneficially owned by the Reporting Person           consist
of an aggregate 19,105,448 Ordinary Shares beneficially owned by the           Reporting
Person and 23,021 Ordinary Shares held by a wholly owned subsidiary of           the
Issuer (as defined in Item 1 below) which, under Israeli law, are considered
          or, prima facie, deemed to be beneficially owned by the Reporting Person.  </FONT></TD>
</TR>
</TABLE>
<BR>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6 </FONT></P>


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<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER">
<TR VALIGN="TOP">
     <TD WIDTH="50%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CUSIP No. M3760D101</B> </FONT></TD>
     <TD WIDTH="50%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Page 7</B> </FONT></TD></TR>
</TABLE>
<BR>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0" border=0>
<TR VALIGN="TOP">
     <TD WIDTH="10%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1.</FONT></TD>
     <TD WIDTH="40%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Names of Reporting Persons/I.R.S. Identification Nos. of Above Persons (Entities Only). </FONT></TD>
     <TD WIDTH="30%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="20%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>Beit Yekutiel Ltd.</B> </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>2.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Check the Appropriate Box if Member of a Group</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>(a)</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>[X]</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(b)</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">[_]</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>3.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>SEC Use Only </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>4.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Source of Funds </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>BK</B></FONT> </TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>5.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Check if Disclosure of Legal Proceedings Is Required Pursuant to Items
2(d) or 2(e) [_]</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>6.</FONT></TD>
     <TD COLSPAN="2" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Citizenship or Place of Organization</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>Israel</B> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="left" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Number of<BR>Shares </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sole Voting Power</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>-0-</B> </FONT><HR COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="left" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Beneficially<BR>Owned</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shared Voting Power</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>19,128,469<SUP>1</SUP></B> </FONT> <HR COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="left" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By Each <BR>Reporting</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sole Dispositive Power</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>-0-</B> </FONT><HR COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="left" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Person <BR>With</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shared Dispositive Power</FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT><HR COLOR="Black" SIZE="1"></TD>
     <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>19,105,448</B> </FONT><HR COLOR="Black" SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>11.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Aggregate Amount Beneficially Owned by Each Reporting Person</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><BR><B>19,128,469<SUP>1</SUP></B> </FONT> </TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>12.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>[_]</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>13.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Percent of Class Represented by Amount in Row (11) </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>45.50%</B> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>14.</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Type of Reporting Person (See Instructions) </FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B>CO</B> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan="4" ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
</TABLE>
<BR><BR><BR><BR><BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>(1)</SUP></FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
19,128,469 Ordinary Shares beneficially owned by the Reporting Person           consist
of an aggregate 19,105,448 Ordinary Shares beneficially owned by the           Reporting
Person and 23,021 Ordinary Shares held by a wholly owned subsidiary of           the
Issuer (as defined in Item 1 below) which, under Israeli law, are considered
          or, prima facie, deemed to be beneficially owned by the Reporting Person.  </FONT></TD>
</TR>
</TABLE>
<BR>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7 </FONT></P>

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<!-- MARKER FORMAT-SHEET="Head Center Underline" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Explanatory Note</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Amendment No. 5 to the Schedule 13D amends and restates  Schedule 13D and Amendments No.
1, No. 2, No. 3 and No. 4 to the Schedule 13D previously filed with the Securities and
Exchange Commission (collectively, the "Prior Schedule"). </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Security and
Issuer</U>. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
title and class of equity security to which this Amendment No. 5 to the Schedule 13D
relates is ordinary shares, nominal value 1.00 New Israeli Shekels per share (the
&#147;Ordinary Shares&#148;), of the Elbit Systems Ltd. (the &#147;Issuer&#148;), a
corporation existing under the laws of the State of Israel. The address of the
Issuer&#146;s principal executive offices is Advanced Technology Center, Haifa, Israel
31053. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Ordinary Shares are traded on the NASDAQ National Market System and the Tel Aviv Stock
Exchange. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
CUSIP number for the Ordinary Shares is M3760D101. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Identity and
Background</U>. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
statement is being filed by Michael Federmann, for and on behalf of himself, Federmann
Enterprises Ltd. (&#147;FEL&#148;), Heris Aktiengesellschaft (&#147;HF&#148;), Beit
Federmann Ltd. (&#147;BFL&#148;), Beit Bella Ltd. (&#147;BBL&#148;) and Beit Yekutiel Ltd.
(&#147;BYL&#148;) (collectively, the &#147;Reporting Persons&#148; or the &#147;Federmann
Group&#148;). Michael Federmann is the controlling shareholder of each of BBL and BYL; BBL
and BYL are the controlling shareholders of BFL; BFL is the controlling shareholder of
FEL; and FEL is the controlling shareholder of HF. The Reporting Persons are making this
single joint filing pursuant to Rule 13d-1(k) under the 1934 Act. An agreement among the
Reporting Persons with respect to the filing of this statement is attached hereto as
Exhibit 1. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
business address of Mr. Michael Federmann is c/o Federmann Enterprises Ltd., 87 Hayarkon
Street, Tel-Aviv, Israel. Mr. Michael Federmann is the Chairman of the Board of Directors
of each of FEL (see description below) and Dan Hotels Corp. Ltd., which is principally
engaged in the business of operating luxury hotels in Israel. The address of Dan Hotels
Corp. Ltd. is 111 Hayarkon Street, Tel Aviv, Israel. Mr. Michael Federmann is also the
Chairman of the Board of Directors of the Issuer, which is principally engaged in the
development, manufacturing and integration of advanced, high-performance defense
electronics systems. The address of the Issuer is set forth in Item 1 above. Mr. Michael
Federmann is a citizen of the State of Israel. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FEL
is a corporation existing under the laws of the State of Israel with its principal
executive offices located at 87 Hayarkon Street, Tel-Aviv, Israel. The principal business
activity of FEL is the holding and managing of investments in private and public
companies. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent"  -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HF
is a corporation existing under the laws of the State of Liechtenstein with its principal
executive offices located at Aeulestrasse 38 F1-9490 Vaduz Forstentum Liechtenstein, c/o
Prasidial-Anstalt. The principal business activity of HF is the holding of investments in
private and public companies. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8 </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
of BFL, BBL and BYL is a corporation existing under the laws of the State of Israel with
its registered offices located at 16 Abba Hillel Silver Road, Ramat Gan, Israel, c/o M.
Firon &amp; Co., Advocates and Notaries. The principal business activity of each of BFL,
BBL and BYL is the holding of investments in private companies. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
name, present business address, present principal occupation or employment and citizenship
of each director and executive officer of FEL, HF, BFL, BBL and BYL are set forth on
Schedules A, B, C, D and E attached hereto, respectively. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the last five years none of the Reporting Persons, nor, to the best of their knowledge,
any of their directors or executive officers, has been (i) convicted of any criminal
proceeding (excluding traffic violations or similar misdemeanors) or (ii) a party to a
civil proceeding of a judicial or administrative body of competent jurisdiction and as a
result of such proceeding was or is subject to a judgment, decree or final order enjoining
future violations of, or prohibiting or mandating activities subject to federal or state
securities laws or finding any violation with respect to such laws. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Source and
Amount of Funds or Other Consideration</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
December 19, 1999, the Issuer, FEL, HF, Rehovot Instruments Ltd. and Elop Electro-Optics
Industries Ltd. (&#147;Elop&#148;) entered into a Merger Agreement (the &#147;Merger
Agreement&#148;), pursuant to which Elop would be merged into and become a subsidiary of
the Issuer in exchange for the issuance by the Issuer of an aggregate of 12,100,000
Ordinary Shares to FEL and HF. The merger transaction contemplated under the Merger
Agreement was completed on July 5, 2000. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
July 28, 2004 FEL purchased from Elron Electronic Industries Ltd. (&#147;Elron&#148;)
7,815,448 Ordinary Shares and Associated Rights for an aggregate purchase price of $196.5
million. In order to obtain some of the funds to purchase the 7,815,448 Ordinary Shares
and Associated Rights from Elron, FEL entered into a loan agreement with Bank Leumi
Le&#146;Israel B.M. (the &#147;Lender&#148;), dated July 28, 2004 (the &#147;Loan
Agreement&#148;) and two related security agreements with the Lender, each dated July 28,
2004 (each, a &#147;Security Agreement&#148;). A summary of the Loan Agreement is attached
hereto as Exhibit 3 and a summary of the Security Agreements is attached hereto as Exhibit
4. The remainder of the purchase price was paid by FEL from its own funds. As of December
1, 2006, approximately $60 million remains outstanding under the Loan Agreement and the
outstanding amount is secured by 4,655,448 Ordinary Shares pledged in favor of the Lender. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
shares so pledged are registered in the name of a trust company which is an affiliate of
the Lender (the &#147;Bank Trustee&#148;). The Bank Trustee has granted FEL a proxy to
vote the pledged Ordinary Shares. This proxy can be revoked by the Lender upon the
occurrence of an event of default under the Loan Agreement. In addition, FEL agreed, if
necessary to make payments under the Loan Agreement, to sell up to approximately 4 million
Ordinary Shares previously held by it and to use the proceeds for payment of the Loan. In
an amendment to the Loan Agreement, dated December 29, 2005, the number of shares to
potentially be sold was reduced to 1,000,000. The Loan Agreement contains customary events
of default. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to Israeli law, the Reporting Persons, together with the Issuer, may be considered, or
prima facie deemed, to beneficially own the Ordinary Shares held by a wholly </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9 </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>owned  subsidiary  of the Issuer.
A wholly owned  subsidiary of the Issuer
holds 23,021 Ordinary Shares which
are entitled to be voted. Therefore, the Reporting Persons may have the right to direct
the vote of such Ordinary Shares and may be considered, or prima facie deemed, to
beneficially own such Ordinary Shares. Each of the Reporting Persons currently
beneficially owns 19,105,448 Ordinary Shares, except for HF which beneficially owns
3,836,458 Ordinary Shares. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purpose of
Transaction. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
December 27, 2004, the Issuer signed a Share Transfer Deed (the &#147;Original Tadiran
Deed&#148;) and a Shareholders Agreement (the &#147;Original Tadiran Shareholders
Agreement&#148; and the transactions contemplated by the Original Tadiran Deed and the
Original Tadiran Shareholders Agreement, the &#147;Original Tadiran Acquisition&#148;)
with Koor Industries Ltd. (&#147;Koor&#148;) regarding the Issuer&#146;s purchase from
Koor of the 3,944,276 ordinary shares held by Koor in Tadiran Communications Ltd.
(&#147;Tadiran&#148;) for overall consideration of approximately $146 million, based on a
purchase price of $37.00 per share (subject to adjustment for dividends and interest). The
Original Tadiran Acquisition was to be made in two stages. In &#147;Stage A&#148; (as
defined in the Original Tadiran Deed), the Issuer purchased from Koor 1,700,000 ordinary
shares of Tadiran. In &#147;Stage B&#148; (as defined in the Original Tadiran Deed), the
Issuer was to purchase the balance (an additional 2,244,276 shares) of the Tadiran
ordinary shares then held by Koor. On July&nbsp;6, 2005, the Issuer and Koor entered into
amendments to both the Original Tadiran Deed and the Original Tadiran Shareholders
Agreement (hereinafter the &#147;Amended Tadiran Deed&#148;, the &#147;Amended Tadiran
Shareholders Agreement&#148; and, collectively, the &#147;Amended Tadiran Acquisition
Agreements&#148; or the &#147;Amended Tadiran Transaction&#148;). The major revisions in
the Amended Tadiran Acquisition Agreements related to the addition of a &#147;new Stage
B&#148;. Under the new Stage B the Issuer accelerated the purchase from Koor of 623,115
ordinary shares in Tadiran which represent approximately 5% of Tadiran&#146;s shares,
resulting in the Issuer holding a total of approximately 26% of Tadiran&#146;s shares
based on Tadiran&#146;s current share capital. Under the Amended Tadiran Deed, the Issuer
purchased the balance (an additional 1,621,161 shares) of the Tadiran shares held by Koor
under a &#147;new Stage C&#148;. The total consideration for the Amended Tadiran
Acquisition remains the same as under the original Tadiran Acquisition. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Concurrently
with the signing of the Original Tadiran Acquisition Agreements, Koor signed a Share
Transfer Deed with FEL (the &#147;Original Koor &#151; FEL Deed&#148;) and a Shareholders
Agreement with FEL and HF (the &#147;New Shareholders Agreement&#148;) relating to the
purchase by Koor from FEL of 4,000,000 ordinary shares of the Issuer, representing
approximately 9.8% of the Issuer&#146;s issued and outstanding ordinary shares based on
the Issuer&#146;s current share capital (the &#147;Koor &#150; FEL Transaction&#148;).
(The Original Koor &#150; FEL Deed and the New Shareholders Agreement are referred to as
the &#147;Original Koor &#150; FEL Agreements&#148; or the &#147;Original Koor &#151; FEL
Transactions&#148;). The total consideration that was to be paid by Koor to FEL under the
Original Koor &#150; FEL Transaction was approximately $99 million, based on a purchase
price of $24.70 per Issuer share (subject to deductions for dividends paid by the Issuer).
Interest is payable for any amounts paid after April 1, 2005. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Original Koor &#150; FEL Transaction was to be consummated in two stages. &#147;Stage
A&#148; (as defined in the Original Koor &#150; FEL Deed) of the Original Koor &#150; FEL
Transaction closed concurrently with Stage A of the Tadiran Acquisition. &#147;Stage
B&#148; (as defined in the Original Koor &#150; FEL Deed) of the Original Koor &#150; FEL
Transaction was to occur concurrently with the original Stage B of the Tadiran
Acquisition, subject to certain exceptions as described in </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10 </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
the Original Koor - FEL Deed.  Pursuant to Stage A of the Original
Koor &#150; FEL Transaction, Koor
purchased 2,160,000 ordinary shares, representing approximately 5.3% of the Issuer&#146;s
shares (based on the Issuer&#146;s current share capital), and FEL supported the
appointment of one director nominated by Koor to the Issuer&#146;s Board of Directors (the
&#147;Issuer&#146;s Board&#148;). Under Stage B of the Original Koor &#150; FEL
Transaction, Koor was to purchase from FEL an additional 1,840,000 ordinary shares,
representing approximately 4.5% of the Issuer&#146;s shares (based on the Issuer&#146;s
current share capital), and FEL agreed to support the appointment of an additional
director to be nominated by Koor to the Issuer&#146;s Board (such that Koor nominees will
consist of not less than 20% of the directors on the Issuer&#146;s Board). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
July 6, 2005, concurrently with the signing of the Amended Tadiran Acquisition Agreement,
Koor and FEL entered into amendments to the Original Koor-FEL Deed (the &#147;Amended
Koor-FEL Deed&#148;) and to the New Shareholders Agreement (the &#147;Amended Koor &#151;
FEL Transaction&#148;). Pursuant to the Amended Koor-FEL Deed, in Stage B Koor purchased
1,000,000 ordinary shares of the Issuer (representing approximately 2.45% of the
Issuer&#146;s shares based on the Issuer&#146;s then current share capital) rather than
1,840,000 ordinary shares of the Issuer, as provided in the Original Koor-FEL Deed
(representing approximately 4.5% of the Issuer&#146;s shares based on the Issuer&#146;s
then current share capital). The closing of Stage B of the Amended Koor-FEL Transaction
occurred on August 25, 2005 immediately following the closing of the New Stage B under the
Amended Tadiran Acquisition Agreement. The Amended Koor-FEL Transaction was not
conditioned on the completion of any stages of the Tadiran Acquisition and the Amended
Koor &#151; FEL Transaction was not subject to any conditions precedent. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following
the completion of Stage B of the Amended Koor-FEL Deed, Koor owned 3,160,000 ordinary
shares of the Issuer, representing approximately 7.75% of the Issuer&#146;s shares based
on the Issuer&#146;s then outstanding share capital. The consideration per share that was
paid by Koor to FEL remained the same as under the original Koor-FEL Deed, and the other
provisions of the original Koor-FEL Agreements remained substantially the same. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
November 27, 2006, FEL purchased from Koor 50,000 Ordinary Shares for an aggregate
purchase price of $ $1,662,810 (which represents a price per share of $33.26 &#150; the
market price of the shares at that time) and subsequently, on November 27, 2006, FEL
purchased from Koor, 2,300,000 ordinary shares at a price per share of $30.60 (the
&#147;Repurchased Shares&#148;), representing approximately 5.6% of the Issuer&#146;s
shares based on the Issuer&#146;s then outstanding share capital. The consideration per
Repurchased Share payable by FEL to Koor is $30.60. At the closing, on November 27, 2007,
(i) FEL paid Koor the purchase price for 460,000 of the Repurchased Shares and received
such shares and (ii) the remaining 1,840,000 Repurchased Shares were registered in the
name of FEL and then immediately registered in the name of a trust company (the &#147;FEL
Trustee&#148;) and pledged in favor of Koor to secure future payments by FEL as described
below. FEL will pay the purchase price for the remaining Repurchased Shares in four equal
installments on March 26, 2007, June 26, 2007, September 26, 2007 and December 26, 2007
and has issued to Koor a debenture evidencing such payments. Upon making each future
payment by FEL, 460,000 of the Repurchased Shares will be transferred by the FEL Trustee
to FEL and the pledge on such shares in favor of Koor will be released. The FEL Trustee
has granted FEL a proxy to vote the pledged Repurchased Shares. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11 </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Concurrently
with the purchase of the Repurchased Shares, FEL and Koor terminated the New Shareholders
Agreement and Jonathan Kolber, Koor&#146;s nominee to the Issuer&#146;s Board of
Directors, announced his resignation as a director of the Issuer. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth above, none of the Reporting Persons, nor, to the best of their knowledge,
any of their directors or executive officers, has any present plans or proposals which
relate to or would result in any of the actions described in subparagraphs (a) through (j)
of Item 4 of Schedule 13D. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest in
Securities of the Issuer. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The responses of the Reporting Persons to Rows (11) through (13) of the cover
          pages of this Schedule 13D/A are incorporated herein by reference. As of
          December 1, 2006, each of the Reporting Persons beneficially owns an aggregate
          of 19,128,469 Ordinary Shares, representing approximately 45.50% of the
          outstanding Ordinary Shares of the Issuer (based on an aggregate of 42,029,023
          Ordinary Shares outstanding as of September 30, 2006, excluding 385,900 Ordinary
          Shares held in treasury by the Issuer), except for HF which beneficially owns
          3,836,458 Ordinary Shares, representing approximately 9.12% of the outstanding
          Ordinary Shares of the Issuer (based on an aggregate of 42,029,023 Ordinary
          Shares outstanding as of September 30, 2006, excluding 385,900 Ordinary Shares
          held in treasury by the Issuer). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as disclosed in this Item 5(a), none of the Reporting Persons, nor, to the best of their
knowledge, any of their directors or executive officers, beneficially owns any Ordinary
Shares. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The responses of the Reporting Persons to (i) Rows (7) through (10) of this
          Schedule 13D/A and (ii) Item 5(a) hereof are incorporated herein by reference. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as disclosed in this Item 5(b), none of the Reporting Persons, nor, to the best of their
knowledge, any of their directors or executive officers, presently has the power to vote
or to direct the vote or to dispose or direct the disposition of any of the Ordinary
Shares which they may be deemed to beneficially own. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          On April 18, 2005 FEL and Koor consummated Stage A of the Original Koor-FEL
          Deed, dated December 27, 2004. Pursuant thereto, FEL sold Koor 2,160,000
          Ordinary Shares at a price per share of $24.62. On August 25, 2005, FEL and Koor
          consummated Stage B of the Amended Koor-FEL Deed. Pursuant thereto, FEL sold
          Koor 1,000,000 ordinary shares at a price per share of $24.91. On November 27,
          2006, FEL purchased from Koor 50,000 Ordinary Shares for an aggregate purchase
          price of $ $1,662,810 (which represents a price per share of $33.26 &#150; the
          market price of the shares at that time) and subsequently, on November 27, 2006,
          FEL bought from Koor, 2,300,000 ordinary shares at a price per share of $30.60.
          As a result, each of the Reporting Persons beneficially owns 19,128,469 Ordinary
          Shares, except for HF which beneficially owns 3,836,458 Ordinary Shares. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Pursuant to Israeli law, the Reporting Persons, together with the Issuer, may be
          considered, or prima facie deemed, to beneficially own Ordinary Shares held by a
          wholly owned subsidiary of the Issuer. A wholly owned subsidiary of the Issuer
          holds 23,021 Ordinary Shares which are entitled to be voted. Therefore, the
          Reporting Persons may have the right to </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12 </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>direct the vote of such Ordinary
Shares and may be considered, or prima facie deemed, to beneficially own such Ordinary
Shares. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
remaining 4,655,448 Ordinary Shares and Associated Rights purchased from Elron are
registered in the name of the Bank Trustee, which is an affiliate of the Lender. The Bank
Trustee granted FEL a proxy to vote the pledged Ordinary Shares. This proxy can be revoked
upon the occurrence of an event of default under the Loan Agreement. Upon the termination
of the Loan Agreement, such Ordinary Shares will be re-registered under the name of FEL. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,840,000
of the Repurchased Shares are registered in the name of the FEL Trustee. The FEL Trustee
granted FEL a proxy to vote the pledged Repurchased Shares. This proxy can be revoked upon
the occurrence of an event of default under the debenture issued by FEL to Koor. Upon each
payment for a portion of the Repurchased Shares, such Ordinary Shares will be
re-registered under the name of FEL. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
of the Reporting Persons currently beneficially owns 19,128,469 Ordinary Shares, except
for HF which beneficially owns 3,836,458 Ordinary Shares. The wholly owned subsidiary of
the Issuer, however, retains the right to dispose of the Ordinary Shares held by it. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the Loan Agreement, FEL undertook to oppose any amendment of the Issuer&#146;s
organizational documents that would adversely affect the Lender&#146;s rights in
connection with the pledged Ordinary Shares and Associated Rights. Failure to do so will
be considered to be a default under the Loan Agreements. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Not applicable. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Contracts, Arrangements, Understandings or Relationships With Respect to
Securities of the Issuer</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
information set forth in Items 3 and 4 hereof is incorporated herein by reference. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
July 5, 2000, upon consummation of the merger transaction contemplated by the Merger
Agreement, Elron, FEL and HF entered into a Registration Rights Agreement which governs
the rights and obligations of the parties with respect to the registration of their
Ordinary Shares for sale in the United States. Elron&#146;s rights under the Registration
Rights Agreement were assigned to FEL on July 28, 2004. A copy of that agreement is set
forth on Exhibit 2. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An
agreement among the Reporting Persons with respect to the filing of this Schedule 13D and
any amendments hereto is attached as Exhibit 1. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the Loan Agreement, FEL undertook to oppose any amendment of the Issuer&#146;s
organizational documents that would adversely affect the Lender&#146;s rights in
connection with the pledged Ordinary Shares and Associated Rights. Failure to do so will
be considered to be a default under the Loan Agreements. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the Security Agreements, the remaining 4,655,448 Ordinary Shares and Associated Rights
purchased from Elron are pledged to the Lender. Such Ordinary Shares are registered in the
name of the Bank Trustee, which is a trust company and an affiliate of the </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13 </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Lender. The Bank Trustee
          granted FEL a proxy to vote the pledged Ordinary Shares. This
          proxy can be revoked by the Lender upon the occurrence of an event of default
          under the Loan Agreement. Upon the termination of the Loan Agreement, such
          Ordinary Shares will be released from the pledge and re-registered under the
          name of FEL. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,840,000
of the Repurchased Shares are registered in the name of the FEL Trustee. The FEL Trustee
granted FEL a proxy to vote the pledged Repurchased Shares. This proxy can be revoked upon
the occurrence of an event of default under the debenture issued by FEL to Koor. Upon each
payment for a portion of the Repurchased Shares, such Ordinary Shares will be released
from the pledge and re-registered under the name of FEL. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as disclosed in this Item 6, none of the Reporting Persons, nor, to the best of their
knowledge, any of their directors or executive officers, are parties to any contract
arrangement, understanding or relationship (legal or otherwise) with respect to securities
of the Issuer. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Materials to be
Filed as Exhibits</U>. </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Joint
Filing Agreement by and among Michael Federmann, Federmann Enterprises Ltd.,
                              Heris Aktiengesellschaft, Beit Federmann Ltd., Beit Bella
Ltd. and Beit Yekutiel                               Ltd. (Incorporated by reference to
Amendment No. 1 to the Schedule 13D filed by Michael Federmann on August 19, 2003.)  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Registration
Rights Agreement dated July 5, 2000 by and among Elbit Systems Ltd.,
                              Elron Electronic Industries Ltd., Federmann Enterprises
Ltd. and Heris Finanz                               Aktiengesellschaft (now known as
Heris Aktiengesellschaft).  (Incorporated by                               reference to
Amendment No. 1 to the Schedule 13D filed by Michael Federmann on August 19, 2003.)  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 3  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>English
Summary of Loan Agreement dated July 28, 2004 by and among Michael
                              Federmann, Federmann Enterprises Ltd. and Bank Leumi
Le-Israel B.M.  (Incorporated                               by reference to Amendment No.
2 to the Schedule 13D filed by the reporting persons                               on
August 2, 2004.) </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 4  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>English
Summary of Security Agreements, dated July 28, 2004, by and between
                              Federmann Enterprises Ltd. and Bank Leumi Le-Israel B.M.
 (Incorporated by reference                               to Amendment No. 2 to the
Schedule 13D filed by the reporting persons on August 2,
                              2004.) </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 5  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>English
Translation of the Original Koor -FEL Deed, dated December 27, 2004, (Incorporated by
reference to Amendment No.&nbsp;3 to the Schedule 13D filed by the reporting persons on
May&nbsp;5, 2005).  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 6  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>English
Translation of the Amended Koor-FEL Deed dated July 6, 2005 (Incorporated by reference to
Amendment No.&nbsp;4 to the Schedule 13D filed by the reporting persons on September 19,
2005).  </FONT></TD>
</TR>
</TABLE>
<BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14 </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<HR SIZE=5 COLOR=GRAY NOSHADE>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 7 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
English Translation of the Share Transfer Deed, dated November 27, 2006, between
Koor and FEL.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 8  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>English
Translation of the Purchase Agreement, dated November 22, 2006, between Koor and FEL.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 9  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>English
Translation of the Debenture, dated November 23, 2006, issued by FEL in favor of Koor.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 10  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>English
Translation of the Trust Agreement, dated November 22, 2006, among FEL, Koor and the FEL
Trustee.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15 </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<HR SIZE=5 COLOR=GRAY NOSHADE>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURE </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After
reasonable inquiry and to the best of my knowledge and belief, I certify that the
information set forth in this statement is true, complete and correct. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated: December 6, 2006 </FONT></P>


<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>/s/&nbsp;Michael Federmann&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
Michael Federmann<BR>
<BR>
<BR>
FEDERMANN ENTERPRISES LTD.<BR>
<BR>
<BR>
By: <U>/s/&nbsp;Michael Federmann&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
Name: Michael Federmann<BR>
Title: Chairman of the Board<BR>
<BR>
<BR>
HERIS AKTIENGESELLSCHAFT<BR>
By: <U>/s/&nbsp;Michael Federmann&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
Michael Federmann, Attorney in Fact<BR>
<BR>
<BR>
BEIT FEDERMANN LTD.<BR>
By: <U>/s/&nbsp;Michael Federmann&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
Name: Michael Federmann<BR>
Title: Director<BR>
<BR>
<BR>
BEIT YEKUTIEL LTD.<BR>
By: <U>/s/&nbsp;Michael Federmann&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
Name: Michael Federmann<BR>
Title: Director<BR>
<BR>
<BR>
BEIT BELLA LTD.<BR>
By: <U>/s/&nbsp;Michael Federmann&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
Name: Michael Federmann<BR>
Title: Director</FONT></TD></TR>
</TABLE>




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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16 </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>SCHEDULE A TO
SCHEDULE 13D/A</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Filed
by Michael Federmann for and on behalf of himself, Federmann Enterprises Ltd., Heris
Aktiengesellschaft, Beit Federmann Ltd., Beit Bella Ltd. and Beit Yekutiel Ltd. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FEDERMANN ENTERPRISES
LTD.<BR><U>DIRECTORS AND
EXECUTIVE OFFICERS</U> </FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" ALIGN="CENTER">
<TR VALIGN=Bottom>
     <TH ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR><U>NAME*</U></FONT></TH>
     <TH ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PRESENT<BR>
BUSINESS<BR>
<U>ADDRESS</U></FONT></TH>
     <TH ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PRESENT<BR>
PRINCIPAL<BR>
<U>OCCUPATION</U></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="33%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Directors</U></FONT></TD>
     <TD WIDTH="34%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="33%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Bella Federmann</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>87 Hayarkon St.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Manager</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tel-Aviv, Israel</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Michael Federmann</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>87 Hayarkon St.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Chairman of the Board</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tel-Aviv, Israel</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>of each of Federmann Enterprises Ltd.,</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dan Hotels Corp. Ltd. and Elbit Systems Ltd.</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Ami Federmann</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>87 Hayarkon St.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Manager</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tel-Aviv, Israel</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Irit Federmann</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>87 Hayarkon St.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Manager</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tel-Aviv, Israel</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Liora Federmann</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>87 Hayarkon St.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Manager</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tel-Aviv, Israel</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><U>Officers</U></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Dov Ninveh</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>87 Hayarkon St.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Manager</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tel-Aviv, Israel</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Aharon Beth-Halachmi</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>87 Hayarkon St.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Manager</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tel-Aviv, Israel</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Flush"  -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>*</SUP> Each person listed in
this Schedule is a citizen of the State of Israel. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17 </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<!-- MARKER FORMAT-SHEET="Head Center Underline" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>SCHEDULE B TO
SCHEDULE 13D/A</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Filed
by Michael Federmann for and on behalf of himself, Federmann Enterprises Ltd., Heris
Aktiengesellschaft, Beit Federmann Ltd., Beit Bella Ltd. and Beit Yekutiel Ltd. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>HERIS AKTIENGESELLSCHAFT<BR>
<U>DIRECTORS AND EXECUTIVE
OFFICERS</U>  </FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NAME AND<BR>
<U>CITIZENSHIP</U></FONT></TH>
     <TH ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PRESENT<BR>
BUSINESS<BR>
<U>ADDRESS</U><BR>
</FONT></TH>
     <TH ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PRESENT<BR>
PRINCIPAL<BR>
<U>OCCUPATION</U><BR>
</FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=33% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><U>Directors</U></FONT></TD>
     <TD WIDTH=34% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=33% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Prasidial</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Aeulestrasse 38</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Management Company</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Management Anstalt</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fl-9490 Vaduz</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Forstentum Liechtenstein</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Dr. Lina Alexander</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Aeulestrasse 38</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Manager</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Austrian</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fl-9490 Vaduz</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Forstentum Liechtenstein</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Michael Federmann</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>87 Hayarkon St.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Chairman of the Board</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tel-Aviv, Israel</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>of each of Federmann Enterprises Ltd.,</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dan Hotels Corp. Ltd. and Elbit Systems Ltd.</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Federmann Enterprises ltd.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>87 Hayarkon St.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tel-Aviv, Israel</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><U>Officers</U></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>None</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18 </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>
<!-- MARKER PAGE="; page: 18" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>


<!-- MARKER FORMAT-SHEET="Head Center Underline" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>SCHEDULE C TO
SCHEDULE 13D/A</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Filed
by Michael Federmann for and on behalf of himself, Federmann Enterprises Ltd., Heris
Aktiengesellschaft, Beit Federmann Ltd., Beit Bella Ltd. and Beit Yekutiel Ltd. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BEIT FEDERMANN LTD.<BR>
<U>DIRECTORS AND EXECUTIVE
OFFICERS</U>  </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR><U>NAME*</U></FONT></TH>
     <TH ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PRESENT<BR>
BUSINESS<BR>
<U>ADDRESS</U></FONT></TH>
     <TH ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PRESENT<BR>
PRINCIPAL<BR>
<U>OCCUPATION</U><BR>
</FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=33% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Directors</U></FONT></TD>
     <TD WIDTH=34% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=33% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Bella Federmann</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>87 Hayarkon St.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Manager</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tel-Aviv, Israel</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Michael Federmann</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>87 Hayarkon St.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Chairman of the Board</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tel-Aviv, Israel</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>of each of Federmann Enterprises Ltd.,</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dan Hotels Corp. Ltd. and Elbit Systems Ltd.</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Ami Federmann</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>87 Hayarkon St.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Manager</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tel-Aviv, Israel</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Irit Federmann</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>87 Hayarkon St.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Manager</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tel-Aviv, Israel</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Liora Federmann</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>87 Hayarkon St.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Manager</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tel-Aviv, Israel</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><U>Officers</U></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>None</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Flush"  -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>*</SUP> Each person listed in
this Schedule is a citizen of the State of Israel. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19 </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

<!-- MARKER PAGE="; page: 19" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>


<!-- MARKER FORMAT-SHEET="Head Center Underline" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>SCHEDULE D TO
SCHEDULE 13D/A</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Filed
by Michael Federmann for and on behalf of himself, Federmann Enterprises Ltd., Heris
Aktiengesellschaft, Beit Federmann Ltd., Beit Bella Ltd. and Beit Yekutiel Ltd. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BEIT BELLA LTD.<BR>
<U>DIRECTORS AND EXECUTIVE
OFFICERS</U>  </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR><U>NAME*</U></FONT></TH>
     <TH ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PRESENT<BR>
BUSINESS<BR>
<U>ADDRESS</U></FONT></TH>
     <TH ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PRESENT<BR>
PRINCIPAL<BR>
<U>OCCUPATION</U><BR>
</FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=33% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Directors</U></FONT></TD>
     <TD WIDTH=34% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=33% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Bella Federmann</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>87 Hayarkon St.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Manager</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tel-Aviv, Israel</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Michael Federmann</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>87 Hayarkon St.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Chairman of the Board</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tel-Aviv, Israel</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>of each of Federmann Enterprises Ltd.,</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dan Hotels Corp. Ltd. and Elbit Systems Ltd.</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Ami Federmann</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>87 Hayarkon St.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Manager</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tel-Aviv, Israel</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Liora Federmann</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>87 Hayarkon St.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Manager</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tel-Aviv, Israel</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><U>Officers</U></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>None</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="Para Flush"  -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>*</SUP> Each person listed in
this Schedule is a citizen of the State of Israel. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20 </FONT></P>

<!-- MARKER PAGE="; page: 20" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>


<!-- MARKER FORMAT-SHEET="Head Center Underline" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>SCHEDULE E TO
SCHEDULE 13D/A</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Filed
by Michael Federmann for and on behalf of himself, Federmann Enterprises Ltd., Heris
Aktiengesellschaft, Beit Federmann Ltd., Beit Bella Ltd. and Beit Yekutiel Ltd. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BEIT YEKUTIEL LTD.<BR>
<U>DIRECTORS AND EXECUTIVE
OFFICERS</U>  </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR><U>NAME*</U></FONT></TH>
     <TH ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PRESENT<BR>
BUSINESS<BR>
<U>ADDRESS</U></FONT></TH>
     <TH ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PRESENT<BR>
PRINCIPAL<BR>
<U>OCCUPATION</U></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=33% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><U>Directors</U></FONT></TD>
     <TD WIDTH=34% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=33% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Bella Federmann</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>87 Hayarkon St.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Manager</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tel-Aviv, Israel</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Michael Federmann</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>87 Hayarkon St.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Chairman of the Board</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tel-Aviv, Israel</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>of each of Federmann Enterprises Ltd.,</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dan Hotels Corp. Ltd. and Elbit Systems Ltd.</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Ami Federmann</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>87 Hayarkon St.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Manager</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tel-Aviv, Israel</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Liora Federmann</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>87 Hayarkon St.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Manager</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tel-Aviv, Israel</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><U>Officers</U></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>None</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Flush"  -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>*</SUP> Each person listed in
this Schedule is a citizen of the State of Israel. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>21 </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

<!-- MARKER PAGE="; page: 21" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>



<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT INDEX </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit No. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Hang" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Joint
Filing Agreement by and among Michael Federmann, Federmann Enterprises Ltd.,
                              Heris Aktiengesellschaft, Beit Federmann Ltd., Beit Bella
Ltd. and Beit Yekutiel                               Ltd. (Incorporated by reference to
Amendment No. 1 to the Schedule 13D filed by Michael Federmann on August 19, 2003.)  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Large Hang" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Registration
Rights Agreement dated July 5, 2000 by and among Elbit Systems Ltd.,
                              Elron Electronic Industries Ltd., Federmann Enterprises
Ltd. and Heris Finanz                               Aktiengesellschaft (now known as
Heris Aktiengesellschaft).  (Incorporated by                               reference to
Amendment No. 1 to the Schedule 13D filed by Michael Federmann on  August 19, 2003.)  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Large Hang" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 3  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>English
Summary of Loan Agreement dated July 28, 2004 by and among Michael
                              Federmann, Federmann Enterprises Ltd. and Bank Leumi
Le-Israel B.M.  (Incorporated                               by reference to Amendment No.
2 to the Schedule 13D filed by the reporting persons                               on
August 2, 2004.) </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Large Hang" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 4  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>English
Summary of Security Agreements, dated July 28, 2004, by and between
                              Federmann Enterprises Ltd. and Bank Leumi Le-Israel B.M.
 (Incorporated by reference                               to Amendment No. 2 to the
Schedule 13D filed by the reporting persons on August 2,
                              2004.) </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Large Hang" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 5  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>English
Translation of the Original Koor -FEL Deed, dated December 27, 2004, (Incorporated by
reference to Amendment No.&nbsp;3 to the Schedule 13D filed by the reporting persons on
May&nbsp;5, 2005).  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 6  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>English
Translation of the Amended Koor-FEL Deed dated July 6, 2005 (Incorporated by reference to
Amendment No.&nbsp;4 to the Schedule 13D filed by the reporting persons on September 19,
2005).  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 7  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>English
Translation of the Share Transfer Deed, dated November 27, 2006, between Koor and FEL.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 8 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
English Translation of the Purchase Agreement, dated November 22, 2006, between
Koor and FEL.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 9  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>English
Translation of the Debenture, dated November 23, 2006, issued by FEL in favor of Koor.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 10  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>English Translation of the Trust Agreement, dated November 22, 2006, among FEL, Koor and the FEL
Trustee.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22 </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>





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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Exhibit 7</B></FONT></P>

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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>(Part 1 (a)) </B></FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>SHARE TRANSFER DEED</U></B> </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I, the undersigned, <B><U>Koor
Industries Ltd.</U></B><U></U> (public company no. 520014143) hereby transfer to
<B><U>Federmann Enterprises Ltd.</U></B><U></U> (private company no. 512278391)
(hereinafter: the &#147;<B>Transferee</B>&#148;) <B><U>50,000 ordinary shares of NIS 1 par
value each</U></B><U></U> marked by numbers 4,055,449 to 4,105,448 inclusive in
<B><U>Elbit Systems Ltd., public company no. 520043027</U></B><U></U>, at a price of NIS
143.70 per share and a total of NIS 7,185,000 to be held by the said Transferee, its
executors, administrators, attornies and transferees under all the conditions according to
which I held them at the time of execution of this deed. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>And I, the Transferee, agree to
accept the aforementioned shares under the above conditions. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As witness to the signature in Tel
Aviv </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: November 27, 2006<BR>
Time: 10:20 </FONT></P>


<TABLE WIDTH="50%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;<BR>
<BR>
Signature of Transferor:<BR>
<BR>
<BR>
<BR>
Witness to Signature:<BR>
<BR>
<BR>
Signature of Transferee:<BR>
<BR>
<BR>
<BR>
<BR>
Witness to Signature:<BR>
<BR>
<BR>
</FONT></TD>
     <TD WIDTH="50%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Koor Industries Ltd.</B><BR>
<BR>
( - )<BR>
___________________________<BR>
<B>Koor Industries Ltd.</B><BR>
<BR>
( - )<BR>
________________________<BR>
<BR>
<B>Federmann Enterprises Ltd.</B><BR>
( - )<BR>
____________________<BR>
Federmann Enterprises Ltd.<BR>
<BR>
( - )<BR>
_______________________<BR>
[illegible handwriting]<BR>
</FONT></TD></TR>
</TABLE>

<DIV STYLE="page-break-after:always"></DIV>





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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Exhibit 8</B></FONT></P>


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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>(Main Agreement)<BR>Final Version</B></FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>AGREEMENT </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Made
and entered into in Tel Aviv on this 22<SUP>nd</SUP> day of the month of November in the
year 2006</B> </FONT></P>


<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="50%" ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>BY AND BETWEEN</B></FONT></TD>
     <TD WIDTH="50%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Federmann Enterprises Ltd. (private co. no. 512278391)</B><BR>
of 99 Hayarkon Street, Tel Aviv<BR>
(hereinafter: "<B>Federmann</B>")<BR>
</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B><U>of the first part</U></B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><BR><B>AND</B></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><BR><B>Koor Industries Ltd. (public co. no. 520014143)</B><BR>
Azrieli Center, Triangle Tower (43rd floor), Tel Aviv, 67023<BR>
(hereinafter: "Koor")</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><BR>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><B><U>of the second part</U></B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" VALIGN="TOP"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><BR>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><BR>(hereinafter: the "<B>Parties</B>")</FONT></TD></TR>
</TABLE>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>WHEREAS</B> </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Koor
holds 3,160,000 (Three Million One Hundred Sixty Thousand) ordinary shares in the issued
and paid-up share capital of Elbit Systems Ltd., a public company duly incorporated in
Israel, whose number at the Registrar of Companies is public company no. 520043027
(hereinafter: the &#147;<B>Company</B>&#148;) which Federmann acquired pursuant to a
share transfer deed dated December 27, 2004 (as amended on July 6, 2005); and  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>WHEREAS</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Koor
wishes to sell and  transfer to Federmann  the Sold Shares,  all subject and pursuant to
                      the following provisions of this Agreement; and </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>WHEREAS</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Federmann
is interested in acquiring  from Koor the Sold Shares,  all subject and pursuant to
                      the provisions of this Agreement; and </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>WHEREAS</B> </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
Parties wish to rescind the shareholders agreement executed between themselves and Heris
Aktiengesellschaft (<B>&#147;Heris</B>&#148;) on December 27, 2004 (as amended on July 6,
2005) in connection with their holdings in the Company (the &#147;<B>Shareholders
Agreement</B>&#148;), all pursuant to the following provisions of this Agreement.  </FONT></TD>
</TR>
</TABLE>
<BR>

<DIV STYLE="page-break-after:always"></DIV>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Now therefore the
parties hereto agree as follows: </FONT></H1>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>1.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Preamble,
Appendices and Interpretation</U></B>  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Preamble to this Agreement and its Appendices constitute an integral part
          hereof.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       1.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
section  headings in this Agreement are for  convenience of reference only and shall not
affect                 its interpretation. </FONT></TD>
</TR>
</TABLE>
<BR>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>2.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Definitions</U></B>  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;In
this Agreement, the following terms shall have the meaning appearing alongside each term,
unless expressly stated otherwise:  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The  &#147;<B>Debenture</B>&#148;</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
debenture in the form attached hereto as <B><U>Appendix 2.1 (a)</U></B><U></U> of this
Agreement in connection with a first lien, unlimited in amount, in favor of Koor, on the
Trust Shares and the rights deriving therefrom set forth in the Debenture, excluding
dividend rights on account thereof, but including the Surplus Amounts. The Debenture
includes a page with mortgage and lien particulars and a notice of pledge to be executed
by Federmann on the Closing Date of the Transaction.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;<B>United
States Dollar</B>&#148; or &#147;$&quot; or "<B>Dollar</B>"  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>United
States dollars. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The &nbsp;&#147;<B>Surplus
Amounts</B>&#148; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Should the Company declare dividends in connection to any calendar
quarter whatsoever, in an aggregate amount per share during this quarter exceeding 0.20
Dollar, this part of the dividends over and above 0.20 Dollar per share for the Trust
Shares (as they may be on the actual date of the dividend distribution) shall constitute
the &#147;Surplus Amounts&#148;, and for the removal of any doubt &#150; the part of the
dividends up to 0.20 Dollar per share in connection with the calendar quarter for the
Trust Shares shall not constitute Surplus Amounts.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The "<B>Company</B>"  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>as
defined in the Preamble to this Agreement. </FONT></TD>
</TR>
</TABLE>
<BR>

<DIV STYLE="page-break-after:always"></DIV>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The &#147;<B>Shareholders
Agreement</B>&#148;   </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>as defined in the Preamble to this Agreement.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The &nbsp;&#147;<B>Trust
Agreement</B>&#148;  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the trust agreement to be executed on the date of execution of this
Agreement between Federmann, Koor and the Trustee, and attached as <B><U>Appendix 2.1 (b)</U></B><U></U> of
this Agreement.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The &#147;<B>Companies
Law</B>&#148;</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the Companies Law, 5759-1999. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147; <B>Business
&nbsp;Day</B>&#148;</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a day on which the two large banks in Israel are open for business in
United States Dollars, excluding Fridays and the eves of festivals, which shall not be
regarded as a Business Day.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>"<B>Koor</B>"  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>as
defined in the Preamble to this Agreement. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;<B>Closing of the Transaction</B>&#148;</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the First Payment Date. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;<B>Payment
&nbsp;Date</B>&#148;</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>each of the following dates: (a) the earlier date of the following
(1) a date to fall on a Business Day to be determined by Federmann in a written notice to
Koor at least 2 (two) Business Days in advance, or (2) December 26, 2006 (the &#147;<B>First
Payment Date</B>&#148;); (b) March 26, 2007; (c) June 26, 2007; (d) September 26, 2007;
and (e) December 26, 2007. To the extent that one of the Payment Dates set forth above
does not fall on a Business Day, such Payment Date shall be regarded as falling on the
first Business Day after the date in question.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;<B>Ordinary
&nbsp;Share</B>&#148; or &#147;<B>Ordinary Shares</B>&#148;</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ordinary shares of NIS 1 par
value each of the issued equity capital of the Company.</FONT></TD>
</TR>
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<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The &nbsp;&#147;<B>Sold
Shares</B>&#148;</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,300,000 (Two Million Three Hundred Thousand) Ordinary Shares
registered in the name of Koor in the books of the Company, the numbers of which are from
1,755,449 to 4,055,448 <B><U>inclusive</U></B><U></U>, as appearing in the share
certificates, a copy of which is attached to this Agreement as <B>Appendices</B>&#147;<B>7.8(a)</B>&#148; and
&#147;<B>7.8(b)</B>&#148; of this Agreement, subject to the adjustments as stated in
section 10 below.  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The &nbsp;&#147;<B>Trust
Shares</B>&#148; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,840,000 (One Million Eight Hundred Forty Thousand) Ordinary Shares out
of the Sold Shares, the numbers of which are <U>2,215,449</U> to 4,055,448 inclusive, as
this quantity of shares may be reduced each Payment Date by the number of Shares Released
on the Payment Date, subject to the adjustments as stated in section 10 below.  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The &#147;<B>Shares
Released on the Payment Date</B>&#148;</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>460,000 (Four Hundred Sixty Thousand) Ordinary
Shares out of the Trust Shares, the numbers of which are as follows:  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
respecting
the Shares Released on the Second Payment Date &#150; 2,215,449 to 2,675,448 inclusive, </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>respecting  the
Shares  Released on the Third Payment Date - 2,675,449 to 3,135,448 inclusive, </FONT></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>respecting  the
Shares  Released on the Fourth  Payment  Date - 3,135,449
                                          to 3,595,448 inclusive, </FONT></TD>
</TR>
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<TR VALIGN=TOP>
<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> respecting the
Shares  Released on the Fifth Payment Date - 3,595,449 to
                                          4,055,448 inclusive, </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>and all
subject to the adjustments as stated in section 10 below.  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The &nbsp;&#147;<B>Shares
on the First Payment Date</B>&#148;  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>460,000 (Four Hundred Sixty Thousand) Ordinary Shares
out of the Sold Shares, the numbers of which are 1,755,449 to 2,215,448 inclusive,
subject to the adjustments as stated in section 10 below.  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The &#147;<B>Trustee</B>&#148;  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>G.L.E.
Trust Services Ltd. [trust company of Goldfarb Levy Eran &amp; Co.]. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147; <B>Free
&nbsp;and Clear</B>&#148; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>free and clear of any encumbrance, pledge, attachment, levy,
debt, lien, claim, priority right, right of refusal, option, blocked arrangement, or any
other or additional third party right whatsoever of any kind or category, excluding
restrictions on transfer of and/or trading in shares which are not registered under U.S.
securities laws, excluding the lien on the Trust Shares pursuant to the provisions of
this Agreement with reference to the Trust Shares only.  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;<B>Federmann</B>&#148;</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>as
defined in the Preamble to this Agreement. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147; <B>Interest
&nbsp;Rate</B>&#148;  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the three-month LIBOR rate, as it may be at Bank Leumi Leisrael Ltd.
on any actual Payment Date whatsoever with respect to the interest period commencing on
that Payment Date and terminating on the following Payment Date and with respect to the
period prior to the First Payment Date &#150; the three-month LIBOR rate as it is at Bank
Leumi Leisrael on the date of execution of this Agreement.  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;<B>Agreement</B>&#148; or
&#147;<B>this Agreement</B>&#148;</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> this share sale agreement, inclusive of all its
appendices.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The &nbsp;&#147;<B>Consideration</B>&#148; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> $30.6
(30 United States Dollars and 60 cents) for each of the Sold Shares and a total of
$70,380,000 (Seventy Million Three Hundred Eighty Thousand United States Dollars).  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The &nbsp;&#147;<B>Payment
on the Payment Date</B>&#148;  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$30.6 (30 United States Dollars and 60 cents) for each of
the Shares Released on the Payment Date, and a total of $14,076,000 (Fourteen Million
Seventy Six Thousand United States Dollars) plus interest on the Payment Date and VAT on
the interest, to be paid by Federmann against delivery of a duly drawn up tax invoice.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The &nbsp;&#147;<B>Payment
on the First Payment Date</B>&#148;</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$30.6 (30 United States Dollars and 60 cents) for
each of the shares on the First Payment Date, and a total of $14,076,000 (Fourteen
Million Seventy Six Thousand United States Dollars) plus interest on the Payment Date and
VAT on the interest, to be paid against delivery of a duly drawn up tax invoice.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The &nbsp;&#147;<B>Interest
on the Payment Date</B>&#148;</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>an amount to be paid together with any payment whatsoever
on account of the Consideration and to be calculated as follows:  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>respecting
the First Payment Date &#150; the amount of the Unpaid Balance on           that date,
multiplied by the relevant Interest Rate, to be calculated (on the           basis of 360
days per annum) proportionately to the period commencing on the           date of
execution of this Agreement and terminating on the actual Payment Date           of the
entire payment on the First Payment Date;  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>respecting
any other Payment Date &#150; the amount of the Unpaid Balance on           that date,
multiplied by the relevant Interest Rate, to be calculated (on the           basis of 360
days per annum) proportionately to the period commencing on the           actual Payment
Date preceding the Payment Date in question and terminating on           the actual
Payment Date of the entire payment on the date in question.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The &#147;<B>Unpaid
Balance</B>&#148;&nbsp; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the balance of the Consideration not yet paid immediately prior to
any Payment Date whatsoever, including immediately prior to the First Payment Date,
whether or not the date for payment due has been reached.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>3.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Koor
Declarations and Undertakings</U></B>  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Koor
hereby declares and undertakes to Federmann as follows:  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>It
is a duly incorporated public company, its number at the Registrar of Companies is as
appears at the head of this Agreement and no measures have been initiated or there is no
threat that measures or proceedings will be initiated for dissolution, liquidation,
winding up, receivership or such similar action against it.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On
the date of execution of this Agreement and on the Closing Date of the Transaction it is
and shall be the exclusive owner of the Sold Shares and that on the date of transfer of
the Sold Shares to Federmann they shall be Free and Clear.  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.3  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
transactions forming the subject matter of this Agreement were duly approved by Koor&#146;s
Board of Directors and Koor has no need to obtain any further approvals whatsoever by any
of its organs to enter into this Agreement and perform all its undertakings hereunder.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.4  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
persons on behalf of Koor signing this Agreement and accompanying documents are competent
to sign in Koor&#146;s name on this Agreement and its accompanying documents and/or those
documents required for the purpose of performance thereof, and to bind Koor by their
signature and this Agreement inclusive of all its provisions binds Koor to all intents
and purposes.  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.5  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>It
has been a shareholder of the Company for several years, its representative sits on the
Board of Directors of the Company and it decided to sell the Sold Shares as a strategic
decision, with full knowledge of the state of the Company, its assets, plans and
prospects and it is aware that Federman&#146;s agreement to enter into this Agreement and
the Consideration for the Sold Shares is based on this representation of Koor&#146;s.  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>4.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Federmann
Declarations and Undertakings</U></B>  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Federmann hereby
declares and undertakes to Koor as follows:  </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>It
is a duly incorporated private company, its number at the Registrar of Companies is as
appears at the head of this Agreement and no measures or proceedings have been initiated
or there is no threat that measures or proceedings will be initiated for dissolution,
liquidation, winding up, receivership or such similar action against it.  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>It
has the capability and means for the full and timely fulfillment of its undertakings
under this Agreement, and it has the financial resources to enable full payment of the
Consideration (plus interest) on the dates as set forth in this Agreement.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.3  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
transactions forming the subject matter of this Agreement were duly approved by Federmann&#146;s
Board of Directors and Federmann has no need to obtain any further approvals whatsoever
by any of its organs to enter into this Agreement and perform its undertakings hereunder.  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.4  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
persons on behalf of Federmann signing this Agreement and its accompanying documents are
competent to sign in Federmann&#146;s name on this Agreement and its accompanying
documents and/or those documents required for the purpose of its performance, and to bind
Federmann by their signature, and this Agreement inclusive of all its provisions binds
Federmann to all intents and purposes.  </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.5  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>It
has been a shareholder of the Company for several years and its representatives sit on
the Board of Directors of the Company, and subject to the declarations and
representations of Koor in section 3 of this Agreement only, the Sold Shares are
acquired, as are the state of the Company and its assets, in an As Is state, without any
further representations or declarations whatsoever from Koor or any person on its behalf,
and the Consideration for the Sold Shares, as agreed between the Parties, was also
determined taking into account the fact that the acquisition is on an As Is basis only,
as stated above.  </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.6  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Subject
to the declarations and undertakings of Koor in section 3 above, on the Closing Date of
the Transaction, it will be the sole owner of the Sold Shares and the Sold Shares shall
be Free and Clear on the date of transfer thereof to the Trustee.  </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>5.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>The
Transaction</U></B>  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On
the Closing Date of the Transaction <I>inter alia </I>all the following integrated acts
shall take place:  </FONT></TD>
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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>              5.1.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Koor
shall sell and transfer to Federmann the Sold Shares, Free and Clear; </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>              5.1.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Federmann
shall transfer the payment to Koor on the First Payment Date; </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.1.3  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Federmann
shall transfer to the Trustee the Trust Shares, Free and Clear. The Shares shall be held
by the Trustee pursuant to the provisions of the Trust Agreement and the Trustee shall
deliver a general power of attorney and instruction to Federmann in connection with
dividends, as set forth in sections 6 and 7 below;  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.1.4  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Federmann
shall impose a lien in favor of Koor on the Trust Shares in the form of a fixed first
lien and fixed first pledge, pursuant to the provisions of the Debenture; and  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.1.5</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Shareholders Agreement shall be irrevocably rescinded as stated in section 11 below. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At
each further Payment Date (after the First Payment Date) all the integrated acts set
forth in section 8 below shall be performed.  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.3  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Without
derogating from any other relief available to Koor under the provisions of any law, where
Federmann delays in making any payment whatsoever (or any part thereof) on any relevant
Payment Date whatsoever and fails to make such payment within 14 (fourteen) days of the
Payment Date in question:  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.3.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Arrearage
interest at an annual rate of 3-month LIBOR interest shall be added to each delayed
amount (including amounts on account of delayed interest accumulated up to the relevant
Payment Date) commencing on the relevant Payment Date until the actual Payment Date, as
it shall be at Bank Leumi Leisrael Ltd. on the relevant Payment Date plus 2% <B>(&#147;Arrearage
Interest</B>&#148;).  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.3.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Koor
shall be entitled to render due and payable the entire Consideration on the delayed
Payment Dates, together with any Interest and Arrearage Interest accumulated on account
thereof and other assured amounts (as defined in the Debenture) and/or immediately
realize the Trust Shares, as they may at that time (the &#147;<B>Realized Shares</B>&#148;).  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.3.3  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Alternatively,
Koor shall be entitled to rescind this Agreement upon 14 days prior written notice to
Federmann, and should Federmann fail to pay the payment on the delayed Payment Date, plus
Arrearage Interest within the aforesaid 14 days &#150; to recover possession of the Trust
Shares, as they were on the date of rescission (the &#147;<B>Returned </B><B>Shares</B>&#148;).
For the removal of any doubt, Koor shall not be obligated to wait 14 days as stated in
the opening part of this section 5.3, prior to giving the aforesaid written notice, as
stated in this section 5.3.3. It is agreed that any rescission of this Agreement after
the Closing Date of the Transaction shall not be incidental to or cause the return by
Federmann to Koor of any of the Sold Shares which are not Trust Shares on the date of
rescission, or the return by Koor to Federmann of any part of the Consideration (plus
interest) paid to Koor on account of the Sold Shares up to the date of rescission, or the
rescission of the Shareholders Agreement as stated in section 11 below.  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.4  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Dividends
on the Sold Shares</U>  </FONT></TD>
</TR>
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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Federmann
shall be entitled to receive any dividend to be paid by the Company after the Closing
Date of the Transaction for each of the Sold Shares (apart from the Surplus Amounts on
the Trust Shares transferred to the Trustee), including a dividend for the Sold Shares
declared by the Company in connection with the third calendar quarter for 2006 on
November 13, 2006 and where the effective date for which is November 28, 2006 (the &#147;<B>Dividend
Declared</B>&#148;), even if the Sold Shares have not yet been transferred to Federmann
and/or the Trustee (the Trust Shares), and even if the X day or effective date in
connection with these dividends falls prior to the Sold Shares having been transferred to
Federmann and/or the Trustee (the Trust Shares), provided that respecting the Dividend
Declared &#150; Federmann&#146;s right to obtain such dividend is contingent on the fact
that the Closing Date of the Transaction is performed by the end of the day on December
10, 2006. Where the Closing Date of the Transaction has not been completed by the end of
the day on December 10, 2006, and for any reason whatsoever the Dividend Declared is paid
to Federmann, Federmann shall reimburse within 7 days of the date of Koor&#146;s written
demand, the amounts of the Dividend Declared paid to it as aforesaid plus interest at the
Interest Rate on the amounts as aforesaid commencing on the date of actual receipt of the
dividend by Federmann until the date of its return to Koor. Where Federmann fails to pay
the full dividend amounts plus interest within the seven aforesaid days, Arrearage
Interest shall be added to these amounts commencing at the end of the aforesaid 7 days
until the date of actual payment. On the date of execution of this Agreement Koor shall
sign a notice to the Company in the form attached to this Agreement as <B>Appendix 5.4</B>,
instructing the Company to pay any such dividend directly to Federmann and it shall be
delivered to Federmann for delivery to the Company.Where the Closing Date of the
Transaction is completed by the end of the day on December 10, 2006, and for any reason
whatsoever the Dividend Declared was paid directly to Koor, Koor shall pay Federmann
within 7 days of the date of Federmann&#146;s written request, amounts of the Dividend
Declared and paid to it as aforesaid, plus interest at the Interest Rate on the aforesaid
amounts commencing on the date of actual receipt of the Dividend by Koor until the date
of payment to Federmann. Where Koor fails to pay the entire amounts of the Dividend plus
interest within the aforesaid seven days, Arrearage Interest shall be added to these
amounts commencing at the end of the seven days until the date of actual payment.Notwithstanding
the aforesaid, if and to the extent that the Company distributes dividends including the
Surplus Amounts, the Surplus Amounts shall be paid to the Trustee and shall be released
to Federmann together with the Released Shares on the Payment Date on account of which
they were distributed. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.5  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
each of the events set forth in sections 5.3.2 or 5.3.3 above, Federmann shall pay Koor
all the dividend amounts paid to Federmann (for the removal of any doubt, not including
the Surplus Amounts) from the date of execution of this Agreement until the date of
realization of the Trust Shares or their return to Koor, in connection with all the
Realized Shares or the Returned Shares, as the case may be. The aforesaid dividend
amounts shall be paid to Koor within 7 days of its written demand plus interest at the
Interest Rate commencing on the date of actual receipt thereof by Federmann until the
date of transfer thereof to Koor. Where Federmann fails to pay the full dividend amounts
plus interest within the aforesaid 7 days, Arrearage Interest shall be added to these
dividend amounts commencing upon the expiration of the aforesaid 7 days until the date of
actual payment.  </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>6.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>The
Trust Arrangement</U></B>  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Trust Shares shall be held by the Trustee in trust to secure payment of any payment on
the Payment Date (and Arrearage Interest, if any), pursuant to the provisions of the
Trust Agreement which shall include, <I>inter alia</I>, the following arrangements:  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.1.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On
the Closing Date of the Transaction, the Trustee shall sign a general power of attorney
for <I>voting on the Trust Shares</I> in favor of Federmann in the form attached to the
Trust Agreement and shall transfer it to Federmann (the &#147;<B>Power of Attorney</B>&#148;).
Should Federmann delay in making any payment on any Payment Date whatsoever (or any part
thereof) or fail to pay such payment within 14 (fourteen) days, Koor shall deliver to
Federmann by means of Federmann&#146;s legal representative &#150;M. Firon &amp; Co. Law
Offices <B>(&#147;Federmann&#146;s Legal Representative</B>&#148;) and to the Trustee, a
written notice in which the breach alleged by Federmann shall be set forth, supported by
an affidavit of a senior officer of Koor (who shall declare, <I>inter alia</I>, that he
is a senior officer of Koor), such notice including a demand for revocation of the Power
of Attorney (the &#147;<B>Default </B><B>Notice</B>&#148;). Immediately after receipt of
the Default Notice, the Trustee shall transfer a true copy thereof to Federmann&#146;s
Legal Representative. <BR>Upon
the expiration of 10 (ten) days after the date on which a true copy of the Default Notice
was delivered to Federmann&#146;s Legal Representative by the Trustee, and if no
injunction from a court reaches the Trustee by the expiration of the aforesaid 10 (ten)
days prohibiting it from doing so, the Trustee shall deliver to Federmann, Koor and the
Company a notice revoking the Power of Attorney.</FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.1.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
the extent that no Default Notice has been received, any dividend, apart from the Surplus
Amounts (which shall be transferred to the Trustee pursuant to the provisions of the
Trust Agreement) to be distributed for each of the Trust Shares shall be transferred
directly to Federmann on the date on which it is distributed. On the Closing Date of the
Transaction, the Trustee shall sign an appropriate notice to the Company in connection
therewith in the form of <B>Appendix 6.1.2</B> of this Agreement, and shall deliver it to
Federmann for delivery thereof to the Company. Upon receipt of the Default Notice the
Trustee shall notify the Company that any dividend to be paid by the Company commencing
on that date on account of the Trust Shares in its possession shall be paid to the
Trustee until receipt of a new notice on behalf of the Trustee. &nbsp; </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.1.3  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Trust Agreement shall set forth the circumstances in which the Trustee shall return the
Trust Shares to Federmann or transfer them to Koor. &nbsp; </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>7.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Acts
to Perform on the Closing Date of the Transaction</U></B>  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
Parties, Company and Trustee shall convene on the Closing Date of the Transaction at a
place to be determined by the Parties and the Company and shall perform the following
integrated acts simultaneously:  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Koor
shall deliver to the Company a letter signed by Yonatan Kolber informing of his
resignation from the Board of Directors of the Company commencing on the Closing Date of
the Transaction.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Trustee shall sign a general power of attorney (the Power of Attorney as defined in
section 6.1.1 above) and shall deliver it to Federmann.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.3  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Trustee shall sign the notice to the Company in the form in <B>Appendix 6.1.2</B> of this
Agreement and shall deliver it to Federmann for delivery thereof to the Company.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       7.4  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Federmann
shall deliver the Debenture to Koor, duly signed by Federmann. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.5  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Parties shall deliver the Debenture and particulars of the mortgages and liens for
registration to the Registrar of Companies and the Debenture and notice of pledge to the
Registrar of Pledges and they shall receive a &#147;received&#148; stamp from them.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.6  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Federmann
shall transfer from a bank whose identity shall be delivered to Koor in writing at least
2 Business Days prior to the Closing Date of the Transaction (the &#147;<B>Bank</B>&#148;)
the payment on the First Payment Date in United States Dollars to Koor&#146;s bank
account at the same bank, the details of which shall be delivered to it in writing by
Koor by the relevant Payment Date (in this section 7, the &#147;<B>Koor Account</B>&#148;).  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.6A  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Koor
shall receive confirmation from the Bank that the aforesaid amount was received in the
Koor Account.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.7  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;The
Parties and the Trustee shall sign share transfer deeds in the form attached as <B><U>Appendix
</U></B><U></U><B><U>7.7(a)</U></B><U></U> and <B><U>Appendix 7.7(b)</U></B><U></U> of
this Agreement in connection with: (a) transfer of all the Sold Shares from Koor to
Federmann; and (b) transfer of the Trust Shares from Federmann to the Trustee and the
aforesaid share transfer deeds shall be delivered to the Company.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.8  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Koor
shall deliver to the Company the share certificates including all the Sold Shares, a copy
of which is attached hereto as <B>Appendix 7.8(a)</B> and <B>Appendix 7.8(b)</B> of this
Agreement.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.9  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;The
Company: (a) shall record in the books of the Company the updated holdings of Koor,
Federmann and the Trustee in the Company shares immediately after the Closing Date of the
Transaction. The record of the Trustee in the books of the Company shall be accompanied
by a note that it is the Trustee; and (b) shall issue to each of Federmann, Koor and the
Trustee new share certificates in the form customary at the Company, reflecting the
holdings of the Parties and the Trustee in the Company immediately after the Closing Date
of the Transaction, with the Trustee being issued 4 share certificates, one for the part
of the Trust Shares numbered 2,215,449 to 2,675,448 inclusive, second for the part of the
Trust shares numbered 2,675,449 to 3,135,448 inclusive, third for the portion of the
Trust Shares numbered 3,135,449 to 3,595,448 inclusive, and fourth for the part of the
Trust Shares numbered 3,595,449 to 4,055,448 inclusive, each share certificate in the
name of the Trustee shall mention the fact that it is Trustee.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       7.10  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
 Shareholders  Agreement  shall  become  irrevocably  null and void as set forth in
 section 11                 below. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.11  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Koor
shall present Federmann with a duly drawn up tax invoice in connection with VAT on the
interest included in the payment on the First Payment Date.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.12  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Koor
shall present Federmann with a valid certificate from the tax authorities on an exemption
(full or partial) from the duty to deduct tax at source, as stated in section 13.2 below
or alternatively, and at its sole discretion, it shall notify Federmann in writing that
it has no such certificate in its possession. Wherever a valid certificate is not
presented on full exemption from the duty to deduct tax at source &#150; tax shall be
duly deducted at source, and the deduction shall be treated as a payment to Koor for all
intents and purposes.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
All
the above acts in this section 7 shall be deemed to have been performed simultaneously,
no single act shall be deemed complete and no single document shall be deemed to have
been delivered until all the acts have been completed at the same time and all the
documents delivered.  </FONT></TD>
</TR>
</TABLE>
<BR>

<DIV STYLE="page-break-after:always"></DIV>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>8.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Acts
to Perform at Each of the Other Payment Dates</U></B>  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
At
each relevant Payment Date (apart from the First Payment Date) the Parties, the Trustee
and the Company shall convene at a place to be determined by the Parties and the Company
and the following integrated acts shall be performed simultaneously: </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Federmann
shall transfer from a Bank whose identity shall be delivered to Koor in writing at least
2 Business Days prior to the relevant Payment Date (for the purposes of this section 8
only, the &#147;<B>Bank</B>&#148;) the payment on the relevant Payment Date in United
States Dollars to the Koor Account at the same Bank, details of which shall be delivered
to Federmann in writing by Koor prior to the relevant Payment Date.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.1A  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Koor
shall receive confirmation from the Bank that the aforesaid amount was received in the
Koor Account stated in section 8.1 above.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Koor
and Federmann shall sign an amending document to the Debenture including a page on the
particulars of the mortgages and liens and a pledge notice in the form attached to this
Agreement as <B>Appendix 8.2</B>, under which the application of the lien and pledge
registered under the Debenture at the Registrar of Companies and Registrar of Pledges
shall be removed from the Shares Released on the relevant Payment Date (the &#147;<B>Amendment
to the Debenture</B>&#148;).  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.3  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;The
Parties shall deliver to the Registrar of Companies and the Registrar of Pledges the
Amendment to the Debenture including the page on the particulars of the mortgages and
liens and the pledge notice, signed as stated in section 8.2 above, and they will receive
a &#147;received&#148; stamp from them.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.4  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Koor
shall transfer an irrevocable and unconditional instruction in writing to the Trustee to
transfer the Shares Released on the relevant Payment Date together with securities,
dividends, including the Surplus Amounts, monies and/or other rights transferred and/or
issued and/or allotted to the Trustee in connection therewith or in consideration
therefor (if transferred and/or issued and/or allotted to the Trustee) to Federmann or to
its order.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.5  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;The
Trustee and Federmann shall sign a share transfer deed in the form attached as <B><U>Appendix
8.5 </U></B><U></U> of this Agreement in connection with the transfer of the Shares
Released on the relevant Payment Date to Federmann and shall deliver the share transfer
deed to the Company.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.6  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;The
Trustee shall deliver to the Company the share certificates on account of the Shares
Released on the relevant Payment Date.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.7  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;The
Company: (a) shall record in the books of the Company the updated holdings of the Trustee
and Federmann in the shares of the Company as at the Payment Date; and (b) shall cancel
the share certificate returned by the Trustee and shall issue to Federmann new share
certificates in the customary form at the Company, reflecting the holdings of the Trustee
and Federmann in the Company at the same Payment Date.  </FONT></TD>
</TR>
</TABLE>
<BR>

<DIV STYLE="page-break-after:always"></DIV>
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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.8  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Koor
shall provide Federmann with a duly drawn up tax invoice in connection with the VAT on
the interest included in the payment on the Payment Date.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.9  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Koor
shall provide Federmann with a valid certificate from the tax authorities on an exemption
(full or partial) from the duty to deduct tax at source, as stated in section 13.2 below
or, alternatively and at its sole discretion, it shall notify Federmann in writing that
it is not in possession of such a certificate. Wherever a valid certificate is not
presented on full exemption from the duty to deduct tax at source &#150; tax shall be
duly deducted at source, and the deduction shall be treated as payment to Koor for all
intents and purposes.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
All
&nbsp;the acts stated in this section 8 above shall be deemed to have been performed
simultaneously, no single act shall be deemed as complete, and no single document shall
be deemed to have been delivered until all the acts have been completed at the same time
and all the documents delivered.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Right
to Early Payment  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Federmann
may, upon prior written notice to be delivered to Koor and the Trustee, at least 7 days
prior to the date to be determined in this notice (provided that it is a Business Day)
advance the Payment Date of the balance of payments on the payment dates that have not
been paid up to that date, in whole or in part (and in the case of &#147;in part&#148;,
it shall set forth in its notice the payments on the Payment Dates whose payment date has
been advanced) (&#147;<B>Early Payment Notice</B>&#148;), provided that no Early Payment
Notice is delivered for an amount lower than $5,000,000 (Five Million Dollars).  </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Where
an Early Payment Notice has been delivered as stated in section 9.1 above, all the
provisions of section 8 above with respect to early payment determined in the Early
Payment Notice as aforesaid, shall apply <I>mutatis mutandis</I>, with reference to the
amount of the balance of payments on the payment dates that have not been paid prior to
such date, whose payment shall be advanced as stated in the Early Payment Notice.  </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>10.</B></FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Adjustments
on Account of Distribution of Bonus Shares or Changes in Share Capital</U></B> </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;To
the extent that during the period from the date of execution of this Agreement until each
of the Payment Dates one or more of the events set forth below occurs, the number of
Shares Released on the relevant Payment Date shall be adjusted according to the following
provisions:  </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.1.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Where
the Company distributes bonus shares to its shareholders prior to any Payment Date
whatsoever, as the case may be, the payment shall not be adjusted on the Payment Date,
but the bonus shares shall be attached to the Shares Released on the Payment Date on
account of the Shares Released on the Payment Date Free and Clear, without Federmann
being required to pay a further payment on account thereof. At the time of distribution
of the bonus shares as aforesaid on account of the Trust Shares, the aforesaid bonus
shares shall be allotted to the Trustee and shall be deemed part of the Trust Shares and
the first lien within the scope of the Debenture shall also apply thereto.  </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.1.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If
the Company performs with its share capital any consolidation, reduction, distribution or
any other act of similar effect, the number of Shares Released on the Payment Date (on
any Payment Date) shall be adjusted according to the ratio of the consolidation or
distribution and the (total) Consideration on the Payment Date shall not alter (although
the price per share sold will vary accordingly).  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If
the Company offers the shareholders rights to acquire any securities whatsoever (&#147;<B>Rights</B>&#148;),
then to the extent that the final date for realization of the Rights is later than the
date of release of the Shares Released on the Payment Date (or if it falls on the same
date) &#150; such Rights shall also be held in trust and shall be subject to the lien
under the Debenture and shall be released to Federmann or Koor (pursuant to the
provisions of this Agreement) together with the Shares Released on the Payment Date with
respect to which they were offered.  </FONT></TD>
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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
If
the date for realization of the aforesaid Rights is prior to the date for release of the
Shares Released on the Payment Date on account of which the Rights were offered &#150;Federmann
shall be entitled to realize the aforesaid Rights, in whole or in part, by a transfer of
the Consideration on account thereof to the Company with a note that the Consideration is
paid on account of the Rights offered in connection with the Rights Released on the
Payment Date, or any part thereof. Securities allotted for Federmann under the aforesaid
realization shall be held in trust and shall be subject to the lien and shall be
released, subject to the following provisions, to Federmann together with the Shares
Released on the Payment Date on account of which the Rights were allotted. Should, under
the Trust Agreement, Koor be entitled to receive the Shares Released on the Payment Date
on account of which the Rights were allotted, Koor shall be entitled, at its sole
discretion, to pay Federmann on the date of receipt of the Shares Released on the Payment
Date the amount for realization of the Rights, plus interest at the Interest Rate from
the date on which Federmann paid the amount to realize the Rights until payment of the
amount to Federmann and to receive together with the Shares Released on the Payment Date
the securities to be allotted on account thereof by virtue of the realization of the
Rights or to notify the Trustee that it may transfer the realized Securities to
Federmann, and in such circumstances the realized Securities shall be transferred to
Federmann.  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.3  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All
rights, monies or assets of any kind whatsoever to reach or to be offered by any entity
whatsoever in lieu of the Trust Shares or in consideration therefor, including securities
in any other corporation (within the scope of any merger, exchange of shares or any other
event) shall be transferred to the Trustee&#146;s possession and shall be encumbered
pursuant to the provisions of the Debenture, and the provisions of this Agreement, the
Trust Agreement and the Debenture shall apply thereto <I>mutatis mutandis</I>, as if they
were the Trust Shares.  </FONT></TD>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>11.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Rescission
of the Shareholders Agreement</U></B>  </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
parties irrevocably agree that on the Closing Date of the Transaction the Shareholders
Agreement, inclusive of all its clauses and appendices shall be null and void <I>vis-&agrave;-vis</I> any
of the Parties thereto. Rescission of the Shareholders Agreement inclusive of all its
clauses pursuant to the aforesaid prevails over any other provision included in the
Shareholders Agreement, insofar as such provision exists. Without derogating from the
generality of the aforesaid, it is hereby clarified that upon rescission of the
Shareholders Agreement, Koor shall be free, at any time, to vote for Company shares
remaining in its possession after the Closing Date of the Transaction (as well as for
Trust Shares to be returned to it, if returned or realized, pursuant to the provisions of
section 5.3 above) on any matter to be put on the agenda, at its sole discretion, and it
shall also be entitled to all the rights deriving therefrom and it may perform any
transaction therein, at its sole discretion. For the removal of doubt, it is clarified
that rescission of this Agreement at any time after the Closing Date of the Transaction
shall not bring with it any re-entry into force of the Shareholders Agreement, or any of
its clauses or appendices.  </FONT></TD>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>12.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Reporting</U></B>  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
Parties shall coordinate in advance, if and wherever possible, subject to the provisions
of any law and the timetables dictated under the provisions of any law, the text of any
report, letter, notice or account published by any of the Parties in connection with
their entering into this Agreement, fulfillment of the conditions hereunder and
performance hereof.  </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>13.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Taxes
and Compulsory Payments</U></B>  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Unless
stated elsewhere in this Agreement, each Party shall bear liability for the compulsory
payments and taxes applying (if any) to it under the provisions of any law on sale or
acquisition of the Sold Shares under this Agreement.  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Should
a duty to deduct tax at source apply to any payment whatsoever paid pursuant to the
provisions of this Agreement, tax shall duly be deducted at source by the paying party,
unless the Party receiving monies presents a valid certificate from the tax authorities
on exemption from the duty to deduct tax at source.  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13.3  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Each
Party shall bear its own expenses, including attorneys&#146; fees in connection with the
drafting and performance of this Agreement.  </FONT></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13.4  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Should
any amount paid by one Party to the other Party under the provisions of this Agreement be
liable to VAT under the provisions of any law, the paying party shall pay the other party
the VAT amount simultaneously upon payment of such amount and in the same manner, at the
legal rate, against receipt of a duly drawn up tax invoice.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13.5  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At
any date on which Federmann pays Koor interest, Koor shall deliver to Federmann a duly
drawn up tax invoice for VAT on the interest.  </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>14.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Miscellaneous</U></B>  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;The
Parties hereby waive any right of first refusal, right of first proposal, right of
participation, priority right or any other right to which they are entitled in connection
with transfer of the Sold Shares either by virtue of the Shareholders Agreement or by
virtue of any other right or agreement.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This
Agreement shall be governed by the law of the State of Israel. Exclusive jurisdiction in
all matters in connection with this Agreement shall be vested solely in the courts within
the jurisdiction of the district court of the city of Tel Aviv &#150; Jaffa, and there
shall be no jurisdiction vested in any other court.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.3  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>No
modification, amendment or addition, waiver, extension, concession or failure to exercise
any right under this Agreement shall be valid unless made in an express document signed
by all the Parties to the Agreement and they shall apply solely to the event expressed in
the document as aforesaid and shall not derogate from the other rights of any Party
whatsoever under this Agreement.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.4  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Parties to this Agreement may extend or shorten any date stipulated in this Agreement and
waive performance of any provision whatsoever in this Agreement, either on a one-time
basis or on several occasions, by means of written notice signed by two senior officers
of each of Federmann and Koor, without the necessity for further approval.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.5  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This
Agreement fully encompasses, embodies, unifies, expresses and exhausts all the agreements
of the Parties to the Agreement with respect to the matters included herein. Any
promises, guarantees, written or verbal agreements, undertakings or representations with
respect to the subject matter of this Agreement given or made by the Parties prior to
entering into this Agreement, verbally or in writing and not expressly mentioned herein
shall not add to, derogate from or alter the obligations and rights determined in this
Agreement and the Parties shall not be bound by them, if any, commencing on the date of
this Agreement. Without derogating from the generality of the aforesaid, the exchange of
documents between the Parties prior to execution of this Agreement, including the drafts
exchanged between them shall not affect the interpretation of this Agreement.  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.6  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>No
conduct on the part of any of the Parties shall be deemed a waiver of any of its rights
under this Agreement or under the provisions of any law, or as a waiver or consent on its
part to any breach or non-fulfillment of the terms of this Agreement by the other Party
or as granting a postponement or extension or as a modification, cancellation or addition
to any term whatsoever, unless expressly made in writing.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.7  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Parties to this Agreement may not, unless expressly stated otherwise in the body of this
Agreement, assign or transfer their rights or obligations under this Agreement to any
third party whatsoever or perform this Agreement by means of any third party whatsoever
unless it has obtained the prior written consent of the other Party to the Agreement, and
nothing in this Agreement shall grant any right whatsoever to any person not a party to
the Agreement.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.8  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Where
any of the Parties failed to enforce or delayed enforcement of any right whatsoever
granted to it under this Agreement or under the provisions of any law in a particular
instance or in a series of instances, this shall not be deemed a waiver of the aforesaid
right or of any other rights whatsoever.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.9  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Parties shall cooperate between themselves for the purpose of realizing the provisions of
this Agreement and they shall assist each other as is reasonable and necessary, including
signing any reasonable document, application or approval that may be required for this
purpose.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.10  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Notices
under this Agreement shall be delivered in writing to the addresses of the Parties as set
forth at the head of this Agreement or to other addresses about which the Parties
notified pursuant to the provisions of this section. Any notice sent by one Party to the
other Party by registered mail shall be deemed to have reached its addressee upon the
expiration of three days after the date of being handed in at the post office; a notice
sent by personal delivery up to 17:00 hours on any Business Day whatsoever shall be
deemed to have been received immediately upon delivery, and where it is delivered after
17:00 hours on any Business Day whatsoever it shall be deemed to have been received on
the first Business Day after delivery thereof.  </FONT></TD>
</TR>
</TABLE>
<BR>

<DIV STYLE="page-break-after:always"></DIV>

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<HR SIZE=5 COLOR=GRAY NOSHADE>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>In
witness whereof the parties hereto have hereunto set their hands and seals:</B> </FONT></P>


<TABLE WIDTH="600" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>
<BR>
<BR>
<BR>
By<BR>
<BR>
<BR>
<BR>
</FONT></TD>
     <TD WIDTH="45%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">( - )<BR>
_______________________<BR>
Koor Industries Ltd.<BR>
<BR>
( - )<BR>
_______________________<BR>
( - )<BR>
_______________________<BR>
<BR>
</FONT></TD>
     <TD WIDTH="45%" ALIGN="left"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;( - )<BR>
_____________________<BR>
Federmann Enterprises Ltd.<BR>
<BR>
by Messrs. Michael Federmann<BR>
and Dov Ninveh</FONT></TD></TR>
</TABLE>








<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I, the undersigned, Heris
Aktiengesellschaft hereby unconditionally certify my consent to the above provisions of
this Agreement, including revocation of the Shareholders Agreement as defined above, as
stated in section 11 above, and I hereby waive any right of first refusal or right of
proposal which I am likely to have in connection with the transactions forming the subject
matter of this Agreement. </FONT></P>


<TABLE WIDTH="80%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="50%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="50%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">( - )<BR>
________________________________<BR>
Heris Aktiengesellschaft<BR>
<BR>
by Mr. Michael Federmann<BR>
</FONT></TD></TR>
</TABLE>

<DIV STYLE="page-break-after:always"></DIV>

<!-- MARKER PAGE="; page: 19" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>


<!-- MARKER FORMAT-SHEET="Head Right" FSL="Default" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>(Part 1 (a)) </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>SHARE TRANSFER DEED</U></B> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I, the undersigned, <B><U>Koor
Industries Ltd.</U></B><U></U> (public company no. 520014143) hereby transfer to
<B><U>Federmann Enterprises Ltd.</U></B><U></U> (private company no. 512278391)
(hereinafter: the &#147;<B>Transferee</B>&#148;) <B><U>50,000 ordinary shares of NIS 1 par
value each</U></B><U></U> marked by numbers 4,055,449 to 4,105,448 inclusive in
<B><U>Elbit Systems Ltd., public company no. 520043027</U></B><U></U>, at a price of NIS
143.70 per share and a total of NIS 7,185,000 to be held by the said Transferee, its
executors, administrators, attornies and transferees under all the conditions according to
which I held them at the time of execution of this deed. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>And I, the Transferee, agree to
accept the aforementioned shares under the above conditions. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As witness to the signature in Tel
Aviv </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: November 21, 2006<BR>
Time: 10:20 </FONT></P>


<TABLE WIDTH="50%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;<BR>
<BR>
Signature of Transferor:<BR>
<BR>
<BR>
<BR>
Witness to Signature:<BR>
<BR>
<BR>
Signature of Transferee:<BR>
<BR>
<BR>
<BR>
<BR>
Witness to Signature:<BR>
<BR>
<BR>
</FONT></TD>
     <TD WIDTH="50%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Koor Industries Ltd.</B><BR>
<BR>
( - )<BR>
___________________________<BR>
<B>Koor Industries Ltd.</B><BR>
<BR>
( - )<BR>
________________________<BR>
<BR>
<B>Federmann Enterprises Ltd.</B><BR>
( - )<BR>
____________________<BR>
Federmann Enterprises Ltd.<BR>
<BR>
( - )<BR>
_______________________<BR>
[illegible handwriting]<BR>
</FONT></TD></TR>
</TABLE>

<DIV STYLE="page-break-after:always"></DIV>

<!-- MARKER PAGE="; page: 20" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>


<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To,<BR>
Federmann Enterprises Ltd. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I hereby certify that 50,000 ordinary
shares of NIS 1 par value each marked by numbers from 4,055,449 to 4,105,448 inclusive, of
Elbit Systems Ltd., public company no. 520043027 (the &#147;Company&#148;) which you
acquired from Koor Industries Ltd. (public company no. 520014143) were recorded in the
books of the Company in the name of Federmann Enterprises Ltd. (private company no.
512278391). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A share certificate pursuant to the
aforesaid shall be issued by the Company forthwith. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: April 27, 2006 </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Time: 10:25 </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sincerely,<BR>(&nbsp;&#151;&nbsp;) </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ilan Pacholder<BR>
[illegible handwritten note] </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>




<!-- *************************************************************************** -->
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<HR SIZE=5 COLOR=GRAY NOSHADE>

<!-- MARKER FORMAT-SHEET="Para Right" FSL="Default" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Exhibit 9</B> </FONT></P>


<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Final </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Appendix 2.1(A) </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>DEBENTURE </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Made and entered into
on this __ day of the month of _______, 2006 </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Whereas the undersigned, Federmann
Enterprises Ltd. (private co. no. 512278391) (&#147;Federmann&#148;)</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>entered into an agreement with Koor
Industries Ltd. (&#147;Koor&#148;) dated November 22, 2006 (hereinafter: the &#147;<B>Sale
Agreement</B>&#148;) under which Federmann undertook to pay Koor the consideration (the
&#147;<B>Consideration</B>&#148;) plus interest (the &#147;<B>Interest</B>&#148;) in
several deferred payments for 1,840,000 shares in Elbit Systems Ltd. (the
&#147;<B>Shares</B>&#148; and the <B>&#147;Company</B>&#148; respectively) which were
transferred by Federmann on the closing date for the transaction forming the subject
matter of the Sale Agreement to G.L.E. Trust Services Ltd. (the
&#147;<B>Trustee</B>&#148;) in trust, all pursuant to the Sale Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Now therefore</B> it was agreed
that to secure full and exact payment of all the amounts that Federmann would owe Koor on
account of, on the basis of or in connection with the Sale Agreement, including the
Consideration for the Shares, Interest on the Consideration as aforesaid, arrearage
interest, currency rate differentials and expenses of any kind whatsoever, including (but
without derogating from the generality of the aforesaid) expenses, indemnities and Trustee
fees, reasonable attorneys&#146; fees and any other expense incidental to initiating
realization and execution office proceedings in the case of non-timely payment of the
Consideration and to secure performance of all Federmann&#146;s other undertakings to Koor
under the Sale Agreement (hereinafter jointly referred to as the &#147;<B>Secured
Amounts</B>&#148;), Federmann shall encumber in favor of Koor by a first fixed lien,
unlimited in amount, as a condition for the transfer of the Shares and until full and
final payment of the Secured Amounts, the Shares and any rights deriving from the Shares
set forth in <B><U>Appendix A</U></B><U></U> of this Debenture (hereinafter: the
<B>&#147;Encumbered Property</B>&#148; or the &#147;<B>Security</B>&#148;), all pursuant
to the following terms. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Nature of the Debenture </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Hang" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This
Debenture has been drawn up to secure full and exact payment of the Secured
          Amounts owed and/or to be owed to Koor from Federmann in the future, payable
          prior to realization of the Securities to which this Debenture applies and/or
          thereafter, owed absolutely and/or conditionally, directly and/or indirectly <B><U>without
any limitation on amount.</U></B> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pledge and Lien </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Hang" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As
security for the full and exact payment of all the Secured Amounts, Federmann
          hereby encumbers in favor of Koor and its successors by a first lien and pledge
          of the Encumbered Property. The pledge and lien created under this Debenture
          shall apply to any right to damages and/or indemnification available to
          Federmann on account of the Encumbered Property.  </FONT></TD>
</TR>
</TABLE>
<BR>

<DIV STYLE="page-break-after:always"></DIV>

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<HR SIZE=5 COLOR=GRAY NOSHADE>




<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Federmann&#146;s
Declarations </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Hang" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Federmann
          hereby declares:  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Encumbered Property is not encumbered, pledged or attached in favor of any other persons.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Encumbered Property is and shall remain, to the extent that this Debenture has not been
cancelled and the lien fully paid off finally and absolutely, in the exclusive possession
of the Trustee or any Trustee in lieu thereof upon the consent of the parties to the Sale
Agreement.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.3  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;There
is not, nor shall there be, to the extent that the Debenture and lien on the Encumbered
Property are not cancelled and the lien paid off finally, any restriction or condition
under the provisions of any law or under any agreement applying to the transfer of the
Encumbered Property or the encumbrance thereof, except for restrictions on transfer of
and/or trading in the Shares imposed on shares which are not registered under U.S.
securities laws.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.4  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
the extent that this Debenture has not been cancelled or the lien fully paid off finally
and absolutely, the Shares constituting the Encumbered Property shall not be transferred
to the ownership of any third party whatsoever and they shall be paid up in full, free
and clear of any debt, encumbrance, pledge, right of lien, attachment, levy, claim,
option or any other third party right of any kind whatsoever, including (without
derogating from the generality of the aforesaid) a right of first refusal, a right of
first proposal, right of participation or any other right, except for restrictions on
transfer of and/or trading in the Shares imposed on shares which are not registered under
U.S. securities laws.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       3.5  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>It
has authority to encumber the Encumbered Property. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Federmann&#146;s
Undertakings </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Hang" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Federmann
          hereby undertakes the following, to the extent that the Secured Amounts have
not           been paid off:  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Not
to sell, transfer, assign, endorse or deliver all or part of the Encumbered Property, not
to undertake to perform any of the acts stipulated above, not to permit any other to use
the Encumbered Property in any manner whatsoever and not to permit any other to perform
any act mentioned above without Koor&#146;s prior written consent thereto.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
immediately notify Koor in the event of the imposition of an attachment, the initiation
of any execution office proceedings or the filing of a petition for the appointment of a
receiver over all or part of the Encumbered Property. Furthermore, to immediately notify
the person imposing the attachment, the bailiff or the receiver of the lien in favor of
Koor and to immediately and without delay, at its expense, initiate any measures to
remove the attachment, cancel the execution office act or the appointment of the
receiver, as the case may be.  </FONT></TD>
</TR>
</TABLE>
<BR>

<DIV STYLE="page-break-after:always"></DIV>
<!-- MARKER PAGE="; page: 23" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>



<!-- MARKER FORMAT-SHEET="Para Hang Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.3  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Not
to encumber or pledge in any mode or manner all or part of the Encumbered Property,
including by a current lien, with rights equal, prior to or later than Koor&#146;s
rights, and not to assign any right whatsoever which Federmann possesses in all or part
of the Encumbered Property without obtaining Koor&#146;s prior written consent.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.4  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
fulfill any undertaking imposed on a shareholder under the provisions of any law and
under the documents of incorporation of Elbit Systems Ltd., including, but not limited to
timely payment of all taxes and compulsory payments imposed on the Encumbered Property or
on the income derived therefrom, and to submit to Koor, at its demand, all receipts for
the aforesaid payments. If Federmann fails to pay any of the aforesaid payments on time,
Koor may (but is not obligated to), after having notified Federmann as far as possible
and if in its discretion this is not sufficient to prejudice its rights, make the payment
at its expense and charge it for reimbursement plus its actual Expenses and Arrearage
Interest (as this term is defined in the Sale Agreement). These payments shall constitute
an integral part of the Secured Amounts under this Debenture.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.5  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Not
to initiate any action whatsoever and not to oppose the performance of any action and to
do its utmost to prevent others from performing any action in connection with Federmann
and/or the Encumbered Property which is likely to prejudice Koor&#146;s ability to
realize the Encumbered Property under this Debenture.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5. </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Federmann
undertakes to notify Koor immediately of:  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Any
of the acts mentioned in section 7 below within 48 hours of the date of becoming aware of
such act.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Any
case of any claim of any right whatsoever with respect to all or part of the Encumbered
Property or of any execution office proceedings or other measures to realize all or part
of the Encumbered Property;  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.3  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Any
petition filed for winding up of Federmann&#146;s business or receivership of its assets
or execution office proceedings against its assets and any resolution with respect to any
change in Federmann&#146;s company structure or any intention whatsoever to do so.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       5.4  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Any
change of address. </FONT></TD>
</TR>
</TABLE>
<BR>

<DIV STYLE="page-break-after:always"></DIV>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Payment Dates </FONT></H1>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Federmann
hereby undertakes to pay Koor the Secured Amounts, or any part           thereof, exactly
on their payment dates, as determined in the Sale Agreement.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Rendering Immediately
Payable and Realization of the Encumbered Property </FONT></H1>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Koor
may render the Secured Amounts immediately payable in the event of any           breach
by Federmann of any of its undertakings or representations under the Sale
          Agreement or this Debenture which is not remedied within 14 days of the date
          Koor delivered to Federmann a written warning with respect thereto
(hereinafter:           the &#147;<B>Breach</B>&#148;) and in the event of any delay of
14 or more days           on Federmann&#146;s part in the timely payment of any of the
Secured Amounts           under the Sale Agreement. Koor may render the Secured Amounts
immediately           payable after having given 3 Business Days written notice, without
Koor being           required to provide Federmann with any further time (unless
expressly determined           otherwise), as well as in each of the following events
(which shall also be           deemed a Breach for the purposes of this Debenture). Koor&#146;s
written notice           shall set forth the circumstances in which the specific event
applies from the           following circumstances on which Koor is relying:  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Federmann
adopted a resolution on voluntary winding up, or an order was given for its winding up or
receivership of its assets, or a stay of proceedings against it, or it applied to court
for protection against its creditors, or a Trustee or special manager was appointed under
the Companies Ordinance or under the provisions of any other law, or its name was
expunged from the Companies Register, or if a resolution was adopted or a similar act
performed to any of the aforesaid resolutions or acts or an application was filed to
commence any proceeding concerned with adopting a resolution or performing any such act
(and the proceeding was not cancelled within 15 days of the date of its commencement or
filing the application for its commencement, if not filed by Federmann), or if Federmann
performed any other act to liquidate its activities or business or sold or transferred to
any third party whatsoever a significant part of its assets, or it failed to repay its
loans or other obligations or a significant part thereof or it failed to pay Interest on
account thereof, or it failed to meet any pecuniary obligation whatsoever which it owed
under an absolute and final judgment;  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Any
attachment whatsoever was imposed (including an interim injunction, conditional
attachment, permanent attachment or final attachment) or any execution office activity
was initiated against any of Federmann&#146;s assets or against a significant part
thereof or on the Securities provided to secure Federmann&#146;s undertakings and the
execution office activities were not absolutely terminated or absolutely removed within
15 days of the date of imposition of the attachment or from the date of performing the
execution office activity, as the case may be.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.3  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Where
an attachment has been imposed on the Encumbered Property or Koor&#146;s rights therein
have been harmed or reduced in any other manner related to Federmann.  </FONT></TD>
</TR>
</TABLE>
<BR>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.4  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
significant deterioration in the economic state or business state of Federmann occurred
in such manner as to throw into significant doubt Federmann&#146;s ability to pay the
Secured Amounts.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.5  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Where
any permit, approval, license or consent whatsoever on the part of Federmann for the
purpose of execution of the Sale Agreement by the parties and performance of Federmann&#146;s
undertakings thereunder, have been breached or are apparently absent.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.6  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Where
any undertaking whatsoever on the part of Federmann <I>vis-&agrave;-vis</I> any other
entity whatsoever entitling such entity to render Federmann&#146;s significant debts
and/or undertakings immediately payable has been breached.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.7  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Sale Agreement was duly rescinded, in whole or in part, by Koor following breach thereof
by Federmann.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cancelled
with consent.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Any
receipt or consideration obtained from realization of the Encumbered           Property
(to the extent that it is realized by means of a sale of all or part of           the
Encumbered Property) shall be credited according to an arrangement to be           chosen
by Koor, on account of the Consideration and/or on account of the           Interest
and/or on account of the Arrearage Interest and/or collection expenses           and/or
on account of other amounts owed and/or to be owed to Koor under this           Agreement
and the Sale Agreement, as Koor shall determine at its sole           discretion.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Without
derogating from the other provisions of this Debenture, no waiver,           extension,
discount, silence and/or the refraining from any act           (&#147;<B>Waiver</B>&#148;)
on the part of Koor with respect to non-fulfillment           or partial or incorrect
fulfillment of any undertaking whatsoever on the part of           Federmann under this
Debenture and/or any other undertaking <I>vis-&agrave;-vis</I> Koor within the scope of
the Sale Agreement shall be           deemed a Waiver on the part of Koor of any right
whatsoever, merely a limited           consent in the specific and limited circumstances
in which it was given.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Wherever
the amounts were rendered immediately payable as stated in this           Debenture and
not paid by Federmann, Koor may exercise at any time any measures           it deems fit
to collect the Secured Amounts and realize its rights under this           Debenture,
including by realization of all or part of the Encumbered Property,           and
applying the proceeds thereof to pay off the Secured Amounts, without Koor
          being under any obligation to first realize other guarantees or securities, if
          any. For the purpose of the aforesaid, Koor may, by a court or the execution
          office, realize the Encumbered Property, <I>inter alia</I> by realization in
          kind (subject to the provisions of any law) or by the appointment of a receiver
          or a receiver and manager on its behalf who may, among other powers, have
          authority:  </FONT></TD>
</TR>
</TABLE>
<BR>

<DIV STYLE="page-break-after:always"></DIV>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       11.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
receive possession of all or part of the Encumbered Property. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
sell or agree to the sale of all or part of the Encumbered Property, to transfer or agree
to the transfer thereof in any other manner whatsoever, under the conditions it deems
fit.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.3  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
act and perform any act necessary to obtain an exemption from payment of any tax, fee,
levy, compulsory payment or any other payment applying or to apply, imposed or to be
imposed under the provisions of any law, and to sign any declaration and/or document in
connection therewith.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       11.4  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
make any other arrangement with respect to all or part of the Encumbered  Property,  as
it deems                 fit. </FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Nature of Security </FONT></H1>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12.  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Security provided to Koor under this Debenture is perpetual and shall remain
               in force until Koor confirms in writing that this Debenture is cancelled.
Koor                shall grant its consent to the cancellation of this Debenture upon
full and                final payment of the Secured Amounts pursuant to the provisions
of the Sale                Agreement. The Security is not dependent on any other security
which Koor                received or shall receive from Federmann or from any other
person or entity to                secure Federmann&#146;s undertakings and payment of
the Secured Amounts, and it                shall not affect or be affected by any other
such security. Notwithstanding the                aforesaid, on each Payment Date (as
defined in the Sale Agreement) the Security                shall be removed from the
Shares Released on the Payment Date (with reference to                the same Payment
Date) and from any part of the Encumbered Property that was                transferred,
allotted and/or distributed in connection therewith or in                consideration
therefor, all as stated in the Sale Agreement.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13.  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If
Koor reaches a compromise or grants an extension or concession to Federmann,
               or any of Federmann&#146;s undertakings in connection with the Secured
Amounts                is varied &#150; this shall not alter the nature of the Security
to which this                Debenture applies, and in any event Federmann&#146;s
Security and the                undertakings to which this Debenture applies shall remain
fully in force.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Koor
may register all or part of the Security at any competent authority under
               the provisions of any law and/or in any public register (including but not
               limited to the Registrar of Companies and the Registrar of Pledges).  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15.  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Federmann
and Koor shall deposit the Security delivered under this Debenture                with
the Trustee pursuant to the provisions of the Sale Agreement. The Trustee
               shall sign and transfer to Federmann a general power of attorney for
voting on                the Shares pursuant to the provisions of the Sale Agreement.  </FONT></TD>
</TR>
</TABLE>
<BR>


<DIV STYLE="page-break-after:always"></DIV>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Notices and Warnings </FONT></H1>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16.  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Any
notice sent by one party to this Debenture to the other party by registered
          mail shall be deemed to have reached its destination three Business Days after
          its registration at the post office for despatch; in the case of delivery by
          courier service, it shall be deemed delivered on the day of delivery.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Substantive Law and
Jurisdiction </FONT></H1>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17.  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This
Debenture shall be governed by the laws of the State of Israel.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18.  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Any
dispute or disagreement between the parties in connection with the term,
          interpretation, performance, enforcement, breach or rescission of this
Debenture           shall be heard in the competent courts in the district of Tel Aviv
&#150; Jaffa,           and no other court shall have jurisdiction.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In witness whereof
Federmann has duly signed: </FONT></H1>






<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="70%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">_________________________________<BR>
<B>Federmann Enterprises Ltd.</B></FONT></TD></TR>
</TABLE>

<DIV STYLE="page-break-after:always"></DIV>





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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Appendix to Debenture) </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>APPENDIX A &#150;
DESCRIPTION OF THE ENCUMBERED PROPERTY</U> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,840,000 ordinary shares of NIS 1
par value each in Elbit Systems Ltd. (public company no. 520043027) numbered in the
Company books from 2,215,449 to 4,055,448 inclusive (hereinafter: the &#147;<B>Encumbered
Shares</B>&#148;) were registered in trust in the name of G.L.E. Trust Services Ltd. and
with whom share certificates in respect thereof were deposited. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The lien shall also apply to: </FONT></P>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A. </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               All shares and securities of any kind whatsoever convertible into or realizable
               as shares actually allotted from time to time in respect of the Encumbered
               Shares (including &#150; and without derogating from the generality of the
               aforesaid &#150; bonus shares of any kind and Rights (as defined in the Sale
               Agreement) and securities realized in consequence of realization of the
               aforesaid Rights); in addition to &#150; </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B. </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               All rights, monies, shares or assets of any kind whatsoever reaching or offered
               by any entity whatsoever in lieu of or in consideration for the Encumbered
               Shares, including securities in any other corporation (in the framework of a
               merger, exchange of shares or any other event) and any other right in connection
               with the Encumbered Shares not expressly vested in Federmann in the acquisition
               agreement. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>C. </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Surplus Amounts, as defined in the Sale Agreement. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

<DIV STYLE="page-break-after:always"></DIV>
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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Appendix 8.2<BR>[Debenture Amendment Deed]</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4><U>DEED OF AMENDMENT OF A
DEBENTURE</U></FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Made and executed on
the ____day of ____ 2007<BR>Amending a Debenture which
was executed on the ___ day of _____ 2006 </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BY<BR>
<B>FEDERMAN ENTERPRISES LTD.<BR>(A Private Company No.512278391)</B><BR>
of 99 Hayarkon Street, Tel Aviv<BR>
((hereinafter: &#147;<B>Federman</B>&#148;)</FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>IN FAVOR OF:<BR>
<B>KOOR INDUSTRIES LTD.<BR>
(A Public Company No.520014143)</B><BR>
Triangle Tower (43rd Floor) Azrieli Center<BR>
Tel Aviv 67023<BR>
((hereinafter: &#147;<B>Koor</B>&#148;) </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>WHEREAS:</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
debenture  was  executed by Federman on the ___ day of ____ in favor of Koor
                              (hereinafter:  "The  Debenture"),  by virtue of which
 1,840,000 (one million,                               eight hundred and forty  thousand)
NIS 1 par value  ordinary  shares  numbered                               from 2,215,449
up to and including  4,055,448  (hereinafter:  "the Shares") in
                              Elbit Industries Ltd (hereinafter: "the Company") were
mortgaged and                               charged in favor of Koor; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>AND WHEREAS:</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
mortgage  (hereinafter:  "the  Mortgage")  numbered  _______ over the shares
                              pursuant to the  Debenture was  registered  with the
Registrar of Companies on                               the ______day of ________. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>AND WHEREAS:</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
Charge  (hereinafter:  "the  Charge  ")  numbered  _______  over the  shares
                              pursuant to the Debenture was registered  with the
Registrar of Pledges on the                               ______day of ________. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>AND WHEREAS:</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
parties to the Debenture wish to amend it as is specified hereunder. </FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Now therefore the
parties hereto agree as follows: </FONT></H1>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>General</U></B>  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
In
this amendment the terms and expressions appearing herein shall have the meanings assigned
to them in the Debenture in so far as such terms and expressions have not been expressly
defined otherwise in this amendment. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Amendments</U></B>  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
Debenture, the Mortgage and the Charge are amended to the effect that commencing from the
date of execution of this Deed of Amendment of the Debenture, the following shall be
released from the effect of the Mortgage and Charge: (1) 460,000 NIS 1 nominal value
ordinary shares in the Company, whose numbers are _________ up to and including
_____________; and (2) any part of the mortgaged property that has been transferred,
allotted or distributed to the Trustee in connection with them and all as stated in the
Sale Agreement as defined in the Debenture. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>3.</B></FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For
the removal of doubt, except for the amendments specified above, no other
          change in the Debenture, Mortgage or Pledge shall be valid.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>AND IN WITNESS WHEREOF
THE PARTIES HAVE DULY SIGNED<BR>
THIS ______DAY OF________: </FONT></H1>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER">
<TR VALIGN="TOP">
     <TD WIDTH="50%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">_______________________________<BR>
<B>Federman Enterprises Ltd.</B><BR>
</FONT></TD>
     <TD WIDTH="50%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">_______________________________<BR>
<B>Koor Industries Ltd.</B><BR>
<BR>
</FONT></TD></TR>
</TABLE>

<DIV STYLE="page-break-after:always"></DIV>





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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Exhibit 10</B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Right" FSL="Default" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Final Version</B>  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>APPENDIX 2.1 (B)</U> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>A TRUST AGREEMENT </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Made and entered into
in Tel Aviv on the 22nd day of November 2006</FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BETWEEN:<BR>
<B>FEDERMANN ENTERPRISES LTD.<BR>
(A Private Company No.512278391)</B><BR>
of 99 Hayarkon Street, Tel Aviv<BR>
(&#147;<B>Federmann</B>&#148;) </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Right" FSL="Default" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U><B>OF THE FIRST PART</B></U></FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>AND:<BR>
<B>KOOR INDUSTRIES LTD.<BR>
(A Public Company No.520014143)</B><BR>
Azrieli Center, Triangular Tower (43rd Floor)<BR>
Tel Aviv 67023<BR>
(&#147;<B>Koor</B>&#148;) </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Right" FSL="Default" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U><B>OF THE SECOND PART</B></U></FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>AND:<BR>
G.L.E. TRUST SERVICES LTD.<BR>
(A Private Company No.511493587)<BR>
of 2 Weitzman Street (Europe-Israel House)<BR>
Tel Aviv 64239<BR>
(&#147;<B>the Trustee</B>&#148;) </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Right" FSL="Default" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>OF THE THIRD PART</U></B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Right" FSL="Default" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Hereinafter: &#147;<B>the
Parties</B>&#148;) </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>WHEREAS:</B></FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Koor
and Federmann have, on the date of signature of this agreement, signed an agreement (&#147;<B>the
sale agreement&#148;</B>) in which Koor will sell to Federmann, 2,300,000 Ordinary Shares
of Elbit Systems Ltd. (hereinafter: &#147;<B>the Company</B>&#148;); </FONT></TD>
</TR>
</TABLE>
<BR>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>AND WHEREAS:</B></FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;As
part of the sale agreement the parties have agreed that in order to assure payment to
Koor for sale of 1,840,000 Ordinary Shares of the Company (<B>&#147;the trust shares
&#147;</B>), the trust shares will be held by the Trustee and will be released in
accordance with the provisions of this Trust Agreement (&#147;<B>the trust&#148;</B>);  </FONT></TD>
</TR>
</TABLE>
<BR>

<DIV STYLE="page-break-after:always"></DIV>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>AND WHEREAS:</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
parties  wish to settle  their  relationships  in the context of the
                                trust,  and all in the manner set forth in detail in this
 agreement and                                 subject to the provisions herein contained; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>IT HAS ACCORDINGLY
BEEN DECLARED, AGREED AND STIPULATED<BR>BETWEEN THE PARTIES AS FOLLOWS:</FONT></H1>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>1.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Interpretation</U></B>  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Unless
stated otherwise, the terms appearing in this agreement but which have not been defined
herein, shall have the meanings assigned to them in the sale agreement. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&#147;The
Surplus Amounts&#148;</B></FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In the event of the Company declaring, in relation to any
calendar quarter, dividends of an amount per share accruing over the period of such
quarter, which exceed 0.20 dollars, such portion of the dividends as is over and above
0.20 dollars per share in respect of the trust shares (as per the quantity thereof on the
actual date of distribution of the dividends), shall constitute &#147;surplus amounts&#148;,
and for the removal of doubt &#151; such portion of the dividends of up to 0.20 dollars
per share in reference to a calendar quarter in respect of the trust shares shall not
constitute surplus amounts.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>2.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Appointment
of the Trustee</U></B>  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Federmann
and Koor hereby irrevocably appoint the Trustee to act as Trustee commencing from the date
of completion of the transaction and in accordance with the provisions of this agreement
in relation to the trust shares (and in relation to all such securities and rights as have
been allotted or assigned to the Trustee in connection with them or the proceeds thereof
as stated hereunder in Section 5, as well as such dividends as have been distributed to
the Trustee in respect of them, in so far as any have been distributed, and the profits of
the trust that have accrued because of them, in so far as any have accrued). For the
removal of doubt, Federmann and Koor may at any time, in a joint written instruction to
the Trustee, terminate the trust under this agreement and in such a notification they may
give it instructions as to whom the trust shares are to be transferred to as well as the
additional assets (as such are defined below in Section 6.2). </FONT></TD>
</TR>
</TABLE>
<BR>

<DIV STYLE="page-break-after:always"></DIV>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>3.</B></FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Transfer
of the trust shares to the Trustee; actions on the date of           completion of the
transaction.</U></B> </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
On
the date of completion of the transaction the following combined actions will occur (as
part of the actions on the completion date in accordance with the sale agreement): </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Federmann
will deliver the debenture to Koor it having been duly executed by Federmann.  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.2 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Federmann and the Trustee will execute a share transfer deed, in connection with transfer
of the trust shares from Federmann to the Trustee, in the form attached hereto as Appendix
7.7(b) to the sale agreement and which is for convenience attached to this agreement
<B><U>as Appendix 3.2</U></B><U></U>, and Federmann will deliver the said share transfer
deed to the Company. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.3 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
On the same date Koor will deliver to the Company the share certificates that are in its
possession, which include <I>inter alia, </I>all the sold shares, a copy of which is
attached to the sale agreement as Appendix 7.8(a) and Appendix 7.8(b). </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.4  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Company:</FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.4.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Will
register in the Company&#146;s books, all the up to date holdings of Koor, Federmann and
the Trustee in the Company&#146;s shares immediately following the transaction completion
date. Registration of the Trustee in the Company&#146;s books will be accompanied by a
notation to the effect of it being Trustee of the trust shares; and &#151; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.4.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Will
issue new share certificates to each of Federmann, Koor and the Trustee, in the Company&#146;s
usual form, reflecting the holdings of Koor, Federmann and the Trustee in the Company
immediately after the completion date of the transaction, when 4 share certificates will
be issued to the Trustee, one for the portion of the trust shares the numbers of which
are from <U>2,215,449 </U>to 2,675,448 <U>inclusive,</U> the second for the portion of
the trust shares the numbers of which are from <U>2,675,499 </U>to 3,135,448 <U>inclusive,</U> the
third for the portion of the trust shares the numbers of which are from <U>3,135,449</U> to
3,595,448 <U>inclusive</U>, and the fourth for the portion of the trust shares the
numbers of which are from <U>3,595,449</U> to 4,055,448 inclusive.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Every
share certificate in the name of the Trustee shall mention the fact that it is the
Trustee in respect of the trust shares.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.5 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The Trustee shall execute a general power of attorney, a copy of which is hereby attached
as Appendix 3.5 and shall deliver it to Federmann. </FONT></TD>
</TR>
</TABLE>
<BR>

<DIV STYLE="page-break-after:always"></DIV>
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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.6 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The Trustee shall sign the notification to the Company, a copy of which is hereby attached
as Appendix 3.6 and shall deliver it to Federmann for delivery to the Company. It is
clarified that the Trustee need not examine whether the Company is performing all the
provisions in terms of the notice and as to whether the amounts being remitted to it as
dividends, if any, come within the definition of surplus amounts. In so far as such
amounts are remitted to the Trustee, the Trustee will treat them as surplus amounts other
than if the Trustee receives a written instruction from Federmann and Koor directing it
otherwise. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.7 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Koor and Federmann will furnish the Trustee with written confirmation that all such terms
and conditions in the sale agreement that were supposed to have been satisfied on the date
of completion of the transaction have been satisfied, except for such terms and conditions
as have been waived by Koor and Federmann. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
All
the foregoing actions specified in Section 3 herein, and in Section 7 of the sale
agreement, shall be deemed to have been carried out contemporaneously; no isolated action
shall be deemed to be complete and no single document shall be deemed to have been
delivered, until all the actions are completed on the same occasion, and all the documents
have been delivered. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>4.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Exercise
of rights arising from the trust shares</U></B>  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.1 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Commencing from the date of completion of the transaction and for as long as the Trustee
is holding the trust shares or any part of them: </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.1.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;If
Federmann is late in making any payment on time (or any part of such payment), and has
not paid it within 14 (fourteen) days, Koor will serve written notice on Federmann
through Federmann&#146;s Attorney &#151; the firm of M. Firon and Co.(<B>&#147;Federmann&#146;s
Attorney&#148;</B>) whose address is at 16 Abba Hillel Silver Road, Ramat Gan, and on the
Trustee, and in which Federmann&#146;s alleged breach shall be set out in detail, and
supported by an affidavit of a senior officer of Koor (who shall make a declaration
therein, <I>inter </I><I>alia, </I>that he is a senior officer in Koor) with such notice
including a demand for revocation of the power of attorney (&#147;<B>the Notice of Breach&#148;</B>).
Shortly after receipt of the Notice of Breach the Trustee shall deliver a true copy
thereof to Federmann&#146;s Attorney. Within 10 (ten) days from the date on which a true
copy of the Notice of Breach has been delivered to Federmann&#146;s Attorney by the
Trustee, and provided that within such 10 (ten) days it has not received a Court
Injunction prohibiting it from doing so, the Trustee shall give notice to Federmann, Koor
and the Company, whose address is at Matam Industrial Zone, Haifa, to the effect that the
power of attorney has been revoked. It is clarified that in the case of revocation of the
power of attorney the Trustee shall not exercise the voting rights attaching to the trust
shares.  </FONT></TD>
</TR>
</TABLE>
<BR>

<DIV STYLE="page-break-after:always"></DIV>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.1.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For
as long as no Notice of Breach has been received by the Trustee, any dividend, except for
the surplus amounts that are remitted to the Trustee, which is being distributed in
respect of each of the trust shares, shall be remitted direct to Federmann on the date on
which it is distributed. Upon receipt of the Notice of Breach the Trustee shall notify
the Company in writing at the address stated above in Section 4.1.1, that any dividend
paid by the Company starting from such date in respect of the trust shares in its
possession shall be paid to the Trustee until receipt of further notice on behalf of the
Trustee. Dividends that are received by the Trustee shall be held in the manner stated
hereunder in Section 4.4.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.1.3  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Unless
the Trustee is lawfully prohibited from doing so, any notice that reaches the Trustee in
relation to the trust shares shall be forwarded by it to Federmann and to Koor.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.2 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
It is clarified that the Trustee shall bear no liability in connection with the exercise
by Federmann of rights in respect of the trust shares (and including voting rights). The
parties hereby instruct the Trustee to refrain from exercising any discretion in relation
to the exercise of or realization of rights arising from the trust shares and the Trustee
shall refrain from exercising any right arising from the trust shares and it shall be
absolved from any liability in relation to refraining from doing so, including liability
as a shareholder. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.3 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
For as long as no notice of breach has been received by the Trustee, all the additional
assets (defined hereunder in Section 6.2, with the exception of dividends but including
surplus amounts) that are received by the Trustee by virtue of the trust shares, if any
are received, shall be held, deposited or invested, as the case may be, in accordance with
explicit and clear written instructions of Federmann and Koor. In the absence of such
instructions or in the absence of agreement between Koor and Federmann the Trustee shall
deposit, invest, or hold them at its exclusive discretion and without any of the parties
having any complaint in the matter, or, in so far as concerns sums of money, they shall be
invested in dollar or shekel deposits upon such terms and conditions and for such periods,
as are at the exclusive discretion of the Trustee and without any of the parties having
any claim in the matter. Profits that accumulate in respect of the foregoing, if any,
shall be remitted (after deduction of any commission, tax and other expenses that apply in
respect of their management and holding by the Trustee) (&#147;<B>the </B>
<B>profits</B>&#148;) in accordance with the provisions of this agreement, together with
the amounts and/or rights in respect of which they have accumulated. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.4 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
In the case of a Notice of breach being received by the Trustee, all the additional assets
(as defined hereunder in Section 6.2) which are received by the Trustee by virtue of the
trust shares, in so far as any are received &#151; shall be held, deposited or invested,
as the case may be, in accordance with explicit and clear written instructions of
Federmann and Koor. In the absence of such instructions or in the absence of agreement
between Koor and Federmann the Trustee shall deposit, invest, or hold them at its
exclusive discretion and without any of the parties having any claim in the matter, or, in
so far as concerns sums of money, they shall be invested in dollar or shekel deposits upon
such terms and conditions and for such periods, as are at the exclusive discretion of the
Trustee and without any of the parties having any complaint in the matter. Profits that
accumulate in respect of the additional assets, if any, shall be remitted (after deduction
of any commission, tax and other expenses that apply in respect of their management and
holding by the Trustee) (together with the profits, &#147;<B>profits of </B> <B>the
trust&#148;</B>) in accordance with the provisions of this agreement, together with the
additional assets in respect of which they have accumulated. </FONT></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.5 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The Trustee shall not be under an obligation to report any of the affairs of the trust to
any of the parties, save where this has been expressly provided in this agreement. The
Trustee will not be entitled to benefits from any amount that it holds in trust under this
agreement but it will be entitled to set off commissions, taxes and any other expense or
payment due to it in accordance with the provisions of this trust agreement for management
of the trust shares (and any securities and rights which have been allotted or have been
transferred to the Trustee in relation thereto or in consideration thereof as provided
above <I><I>[sic]</I> </I>in Section 5, as well as such dividends as have been distributed
to the Trustee in respect of them, in so far as any have been distributed, and the profits
of the trust that have accumulated in respect of them, in so far as any have accumulated). </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.6 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The Trustee shall not bear any liability for tax, commission, levy, fee or any other
expense or payment in connection with the performance of its obligations under this
agreement, including in connection with the receipt, holding and transfer of the trust
shares, the dividends and the profits of the trust, and Federmann and Koor shall jointly
and severally indemnify the Trustee immediately upon its first demand in respect of any
such liability that is imposed on it by any party or in respect of any expense or payment
incurred. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.7 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
In so far as the Trustee is legally liable to deduct tax at source, the Trustee shall make
the required deduction unless it is furnished to its satisfaction with an exemption from
deduction of tax at source. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>5.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Adjustments</U></B>  </FONT></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.1 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
In so far as during the period from the date of signature of this agreement and until each
of the payment days, one or more of the events specified hereunder occurs, the number of
trust shares and the number of shares being released on the relevant payment date shall be
adjusted in accordance with the following provisions: </FONT></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.1.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If
the Company distributes bonus shares to its shareholders prior to any payment date, as
the case may be, there shall be added to the shares being released on such payment date,
the bonus shares in respect of the shares being released on such payment date (whatever
the payment date may be), they being free and unencumbered, and such bonus shares shall
be deemed to be part of the shares being released on such payment date. At the time of
distribution of the bonus shares in respect of the trust shares, the said bonus shares
shall be allocated to the Trustee and share certificates shall be issued to the Trustee
in respect thereof (according to the number of such share certificates in his possession
at that time) and the Trustee shall be registered in the Company&#146;s books as holding
the said bonus shares in trust; in the case of a distribution of bonus shares as
aforesaid, Federmann and Koor will serve a joint notice on the Trustee in which the total
amount shall be specified of the bonus shares that are being allotted to the Trustee as
well as the number of bonus shares included in such total amount as are to be released on
any payment date.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.1.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If
the Company carries out a consolidation of, reduction in or division of its share capital
or any other action of similar effect, the number of trust shares and the number of
shares being released on the payment date (whenever such payment date may occur), shall
be adjusted <I>pro rata </I>to such consolidation or division, and the Company shall
issue a share certificate to the Trustee instead of the old share certificate reflecting
the revised number of trust shares.  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.2 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
If the Company offers its shareholders rights for the acquisition of any securities
(&#147;<B>rights&#148;</B>) in such a case in so far as the last date for the exercise of
such rights is later than the date of release of the shares being released on the payment
date (or if it falls on the same day) such rights shall be vested even though they are in
trust and shall be subject to the mortgage pursuant to the debenture and shall be released
to Federmann or to Koor together with the shares being released on the payment date in
respect of which they were offered in accordance with the provisions of Section 6
hereunder. Koor and Federmann shall give written notice regarding such rights and the
shares being released to which such rights must be attributed. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
If
the date of exercise of the said rights is prior to the date of release of the shares
being released on the payment date in respect of which such rights were offered, Federmann
will be entitled to exercise the said rights, either wholly or partially, by remitting the
consideration for them to the Company stating that the consideration is being paid for the
rights that have been offered in relation to the shares being released on the payment
date, or any part thereof. The securities that are to be allotted for Federmann by virtue
of such exercise of rights shall be allotted to the Trustee and shall be held by it in
trust and shall be released, subject to what is stated hereunder, to Federmann together
with the shares being released on the payment date in respect of which they were allotted.
The Trustee shall act in accordance with a written notice from Federmann and Koor in which
the number of shares that have been allotted shall be specified as well as the date of
payment on which such shares are to be released to Federmann. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
If
in accordance with the provisions of Section 6.2 hereunder, the Trustee transfers to Koor,
the shares being released on the payment date in respect of which such rights were
allotted, in that event the Trustee shall proceed in accordance with one of the two
instructions that are stated in the written notice that is given to it and to
Federmann&#146;s Attorney, by Koor: [a] to transfer to Koor, together with the shares
being released on the payment date, the securities that have been issued in respect
thereof; or &#151; [b] to transfer the securities that have been issued to Federmann. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.3 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
All such rights, moneys or assets of any kind as are due or are offered by any party
instead of the trust shares or in consideration for them, including securities in any
other corporate body (as part of a merger, exchange of shares or any other event) shall be
transferred to the disposal of the Trustee and shall be charged in accordance with the
provisions of the debenture and the provisions of the trust agreement shall apply to them
<I>mutatis mutandis </I>as if they had been trust shares. Where the Trustee has requested
instructions regarding the way in which a particular asset is to be kept and/or held,
which is not a security, Federmann shall give the Trustee instructions as to the manner in
which it is to be held and shall bear all expenses of holding it. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>6.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Transfer
of the Trust Shares to Federmann or Koor</U></B>  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Transfer
of the Trust Shares to Federmann.</FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
On
any relevant payment date (except for the first payment date) and subject to: (1) Koor not
having previously furnished the Trustee with an authenticated decision of a Court or
Execution Office by virtue of which a receiver has been appointed to realize the trust
shares under the debenture; or &#151; (2) the obligation of the Trustee to transfer the
trust shares to Koor in accordance with the provisions of Section 6.2.2 hereunder, not
having arisen, or &#151; (3) Koor not having previously furnished the Trustee with an
authenticated decision of a Court by virtue of which the Trustee is prohibited from
transferring the trust shares to Federmann, the following combined actions shall be
carried out simultaneously (as part of the actions on any relevant payment date in
accordance with the sale agreement): </FONT></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.1.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Koor
and Federmann will sign a document amending the debenture including the page containing
particulars of mortgages and charges and notice of mortgage in the form attached to the
sale agreement as Appendix &#147;8.2&quot;, according to which the legal effect of the
mortgage and charge registered in accordance with the debenture with the Registrar of
Companies and with the Registrar of Pledges, shall be removed from the shares being
released on the relevant payment date.  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.1.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Koor
will deliver an irrevocable and unconditional written instruction to the Trustee to
transfer the shares being released on the relevant payment date, together with
securities, dividends, including the surplus amounts, moneys and/or any other rights that
have been transferred and/or allotted and/or distributed to the Trustee in connection
with them or in consideration for them (if any have been transferred to and/or allotted
and/or distributed to the Trustee), to Federmann or to its order. Any such notice on
behalf of Koor shall specify the number of shares that are to be transferred on such
payment date and the amount, in so far as it is relevant, that is to be transferred to
Federmann or to its order on such payment date. If on such payment date additional assets
are also to be transferred, the notice shall specify the additional assets that are to be
transferred to Federmann or to its order. The Trustee shall proceed solely in accordance
with the instructions contained in such notice.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.1.3 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The Trustee and Federmann shall execute a share transfer deed in the form attached as
Appendix 8.5 to the Sale Agreement, and which for convenience is attached to this
Agreement <B><U>as Appendix 6.1.3</U></B><U></U>, and Federmann shall deliver such share
transfer deed to the Company. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.1.4  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;The
Trustee shall deliver the share certificate to the Company in respect of the shares being
released on the relevant payment date.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.1.5  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Company:</FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.1.5.1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Will
register in the Company&#146;s books the revised up to date holdings of the Trustee and
Federmann in the Company&#146;s shares as at such payment date. Registration of the
Trustee in the Company&#146;s books shall be accompanied by a note that it is the Trustee
of the Trust shares; and- &nbsp; </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.1.5.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
share certificate that has been returned by the Trustee shall be cancelled and new share
certificates, in the Company&#146;s usual form, shall be issued to Federmann, reflecting
the holdings of Federmann and the Trustee in the Company on such payment date. The share
certificate in the name of the Trustee shall state the fact that it is the Trustee in
respect of the trust shares. &nbsp; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.1.6  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Koor
and Federmann shall furnish the Trustee with written confirmation that all the terms and
conditions under the sale agreement that were supposed to be satisfied on the relevant
payment date, have been satisfied, except such terms and conditions as have been waived
by Koor and Federmann; they shall also confirm in writing that all the actions under
Section 6.1 herein and in Section 8 of the Sale Agreement have been completed and that
the Trustee is obliged to act in accordance with Koor&#146;s instruction as stated above
in Section 6.1.2.  </FONT></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
All
the foregoing actions specified above in Section 6.1 herein, shall be deemed to be taken
simultaneously, together with the further actions mentioned in Section 8 of the Sale
Agreement; no isolated action shall be deemed as being complete and no single document
shall be deemed to have been delivered until all such actions are completed on the same
occasion and all the documents are delivered. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
If
Federmann gives notice of early payment to Koor, in accordance with the provisions of
Section 9 of the Sale Agreement, a copy thereof shall also be delivered to the Trustee and
all the foregoing provisions of Section 6.1 shall apply, <I>mutatis mutandis,</I> with
regard to the date of early payment stipulated in such notice of early payment. In such
early payment notice Federmann shall specify in detail the early payment date and the
quantity of shares that is to be transferred to Federmann out of the trust shares at that
date; if on that date no balance of the trust shares is being transferred, such notice
shall specify the next date on which the trust shares will be released to Federmann and
the number of shares that will be released at any time. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
In
the event of early payment, the share certificates held by the Trustee shall be replaced
in order to reflect the revised up to date number of sold shares that are to be
transferred on any payment date in view of such early payment. Furthermore, the amount of
shares in the share transfer deeds shall be revised accordingly. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Transfer
of the Trust Shares to Koor</U></FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Without
derogating from any other legal right available to Koor, the Trustee shall transfer the
trust shares in its possession together with such securities and rights as have been
allotted or transferred to the Trustee in connection with them or in consideration for
them as provided above in Section 5, as well as such dividends and/or surplus amounts as
have been distributed to the Trustee in respect of them, in so far as any have been
distributed, and the profits of the trust that have accumulated in respect of them, in so
far as any have accumulated (&#147;t<B>he </B> <B>additional assets&#148;</B>): </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.2.1 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
To a receiver appointed by a Court or Execution Office to realize the trust shares and the
additional assets &#151; in accordance with such instruction as the Trustee receives from
the Court or the Execution Office, whichever is applicable, to transfer the trust shares
and the additional assets to the receiver; or- </FONT></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.2.2 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
To Koor &#151; in each of the following instances: (1) where Koor has given notice to the
Trustee and to Federmann&#146; s Attorney in writing in which it is alleged that Federmann
has committed a breach of the sale agreement by failing to make any one of the payments
payable pursuant thereto on time on any relevant payment date concerning it, and the
Trustee has not received from Federmann, within 14 days of the service of Koor&#146;s
notice on Federmann&#146;s Attorney, written notice supported by an Affidavit of a senior
officer of Federmann (in which a declaration is to be made<I> inter alia, </I>that he is a
senior officer of Federmann) and which is duly certified by an Attorney, that Federmann
has made the payment on the relevant date including late payment interest and which
specifies the mode of and the date of payment, (and for the removal of doubt the Trustee
will not be under an obligation to investigate the veracity of the Affidavit and/or its
details including the details concerning the mode of payment, the amount of the payment
and the date thereof); or the Trustee has not, within the said 14 days, been furnished
with a duly authenticated Court Decision prohibiting it from transferring the trust shares
and the additional assets; or (2) in accordance with a duly verified Court Decision,
ordering the Trustee to transfer the trust shares and the additional assets to Koor. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>7.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Limitation
of Liability and Indemnification</U></B>  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.1 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Following transfer of all the trust shares (together with all such securities and rights
as have been allotted to or transferred to the Trustee in connection with them or in
consideration for them as provided above in Section 5, as well as such dividends and/or
surplus amounts as have been distributed to the Trustee in respect of them, in so far as
any have been distributed, and profits of the trust that have accumulated in respect of
them, in so far as any have accumulated), the Trustee will be under no further obligation
in relation to this agreement including in relation to the trust shares, the additional
amounts, the dividends and profits of the trust held by it. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.2 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The Trustee shall act in connection with the Trust shares (and in connection with all such
securities and rights as have been allotted to or transferred to the Trustee in connection
with them or in consideration for them as provided above in Section 5, as well as such
dividends and/or surplus amounts as have been distributed to the Trustee in respect of
them, in so far as any have been distributed, and profits of the trust that have
accumulated in respect of them, in so far as any have accumulated), only in accordance
with this agreement or in accordance with a further agreement (in so far as there is one)
that it receives, it being duly signed by it, by Federmann and by Koor </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.3 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The Trustee will be entitled at its sole and absolute discretion to apply to a Court,
Tribunal, Execution Office or any other competent authority in order to obtain
instructions or clarifications regarding any action that it is required to take or to
refrain from taking, under this agreement. Federmann and Koor shall between them bear such
expenses as are involved in such an application in equal shares. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.4 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Federmann and Koor hereby instruct the Trustee to act in accordance with any instruction
order or judgment of a Court, Arbitrator, Execution Office, or any other jurisdiction, or
any instruction or order of a governmental authority in relation to an action that the
Trustee is required to take or to refrain from taking under this agreement or in
connection with the trust shares, the dividends, the surplus amounts and/or the profits of
the trust, and neither Federmann nor Koor shall have any complaint, claim or demand
against the Trustee, if it has acted in accordance with such an order or instruction even
if it was opposed to such order or instruction and even where it becomes evident <I>ex
post facto</I> that such instruction or order was made or given without due authority. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.5 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Where the Trustee has been given notice on behalf of one of the representatives enumerated
hereunder, or has been given an instruction in accordance with this agreement by such
representatives, it shall not be under any obligation to examine such notice or
instruction or its veracity or the veracity of what is stated therein, or the veracity of
the identity of the signatories of such notice or instruction, or the authority of the
signatories to sign or send such notice or instruction, or whether what is stated therein
correctly reflects the facts or the provisions contained in the sale agreement. Notice to
the Trustee under this agreement may be given by furnishing copies of letters or other
documents and the Trustee shall not be under any obligation to examine the veracity of
such a copy. Federmann&#146;s representatives for the purposes of this agreement shall be:
Mr. Michael Federmann or Mr. Dov Ninveh or Federmann&#146;s Attorney and Koor&#146;s
representatives for the purposes of this agreement shall be: Raanan Cohen or Shlomo Heller
or Herzog, Fox, Neeman and Co., Koor&#146;s Attorneys. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
It
is accordingly hereby clarified that notification of Koor or notification of Federmann in
accordance with this agreement shall only be deemed due notice if it is signed by
Federmann&#146;s representative or Koor&#146;s representative, as the case may be, who are
specified above. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
It
is agreed that Koor or Federmann, as the case may be, may give the Trustee notice as to a
change of their representatives provided that such notice is signed by the representative
that preceded the new representative or by the Chairman of the Board of Directors of Koor
or of Federmann, as the case may be. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.6  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Federmann
and Koor hereby exempt the Trustee, its employees, managers, officers and anyone acting
on its behalf, from liability for any act or omission committed by any of them under this
agreement, except for an act or omission of the Trustee committed in bad faith, willfully
or with gross negligence. Subject to the foregoing provisions of this Section 7.6,
Federmann and Koor both undertake, jointly and severally, (in equal shares &#151;having
regard to the context of the relationships between them), to indemnify the Trustee within
7 days of receipt of the Trustee&#146;s written demand, in respect of any damage or
expense of any kind, and without limitation of the amount of such damage or expense
caused to or incurred by the Trustee, any of its employees, managers, officers and/or
anyone acting on its behalf in all matters pertaining to this agreement or to its
implementation.  </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>8.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Matters
relating to the trust &#151; miscellaneous.</U></B>  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.1 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The liabilities and obligations of the Trustee shall be those that are expressly
stipulated in this Trust Agreement, and the Trustee shall not be under any liability or
obligation that is not explicitly enumerated in this Trust Agreement. The Trustee will not
be bound to take any action that is not explicitly stipulated in this Trust Agreement. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.2 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The Trustee may, appoint an agent/agents to act instead of it, whether an Attorney at law
or otherwise, in order to take or to participate in the taking of actions that are
required to be taken in relation to the trust in accordance with this agreement,
including, and without derogating from the generality of the foregoing, the taking of
legal proceedings. Federmann and Koor undertake, jointly and severally, (in equal shares
&#151; having regard to the context of the relationships between them), to bear the
reasonable professional fees of any such agent. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.3 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The Trustee may, in the implementation of matters relating to the trust, proceed in
accordance with the professional expert opinion and/or advice of any Lawyer, Accountant or
any other expert, and the Trustee shall not be liable for any loss or damage caused as a
result of any action and/or omission committed by it in reliance on such professional
opinion or advice unless the Trustee has acted in bad faith, willfully or with gross
negligence. Federmann and Koor undertake, jointly and severally, (in equal shares &#151;
having regard to the context of the relationships between them), to bear the reasonable
professional fees of any such experts. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.4 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The Trustee will not be bound to take any action that imposes any financial obligation on
it unless cover for such financial obligation on its part is assured to its complete
satisfaction. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.5 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The Trustee will not be under any obligation to defend any legal proceeding that is
instituted against it due to and/or as a result of the performance of its function under
this Trust Agreement. The Trustee shall notify Koor and Federmann&#146;s Attorney of any
such legal proceeding shortly after becoming aware of it. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>9.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Termination
of the Trust</U></B>  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.1 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
All the Trustee&#146;s obligations under this agreement shall come to an end upon transfer
of all the trust shares (and together with all such securities and rights as have been
allotted to or transferred to the Trustee in connection with them or in consideration for
them as provided above in Section 5, as well as all the dividends and/or the surplus
amounts, that have been distributed to the Trustee, in so far as any have been
distributed, and profits of the trust that have accumulated in respect of them , in so far
as any have accumulated). </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.2 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The Trustee may at any time transfer its rights and obligations under this agreement
together with the trust shares (and together with all such securities and rights as have
been allotted to or transferred to the Trustee in connection with them or in consideration
for them as provided above in Section 5, as well as all the dividends and/or the surplus
amounts, that have been distributed to the Trustee, in so far as any have been
distributed, and profits of the trust that have accumulated in respect of them, in so far
as any have accumulated), to another Trustee whose identity shall be approved in writing
by Koor and Federmann, provided that the aforementioned approval of Koor and of Federmann
shall not be withheld other than because of the existence of a material conflict of
interests between either of them and the other Trustee or on other reasonable grounds. If
the aforementioned approval of Koor and Federmann is not forthcoming within 7 days from
the date of the Trustee&#146;s written request to Koor and Federmann as aforesaid, and
Koor and Federmann have not proposed an alternative Trustee agreed by them within the said
period of seven days, the Trustee may transfer his rights and obligations under this
agreement together with the trust shares (and together with all such securities and rights
as have been allotted to or transferred to the Trustee in connection with them or in
consideration for them as provided above in Section 5, as well as all the dividends and/or
the surplus amounts, that have been distributed to the Trustee, in so far as any have been
distributed, and profits of the trust that have accumulated in respect of them , in so far
as any have accumulated), to another Trustee at its discretion. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.3 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
In addition to the foregoing, the Trustee may rescind this agreement at its sole
discretion if a date for completion of the transaction has not occurred by June 30, 2007
and the parties shall have no claim in relation thereto. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>10.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>The
Trustee&#146;s Professional Fee</U></B>  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.1 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The Trustee&#146;s professional fee shall be on an hourly basis and according to the usual
hourly tariff, as shall be charged from time to time, by the firm of Goldfarb, Levy, Eran,
Meiri and Co. In addition the Trustee shall be entitled to cover for all such expenses and
payments as it is obliged to incur or make, as the case may be, in connection with the
performance of its function as Trustee under this Trust Agreement. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
foregoing payments shall be made monthly, and VAT shall be added to them as required by
law.  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.3  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Federmann
and Koor will bear the foregoing payments between them in equal shares.  </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>11.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>General</U></B>  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.1 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
In the event of conflict between the provisions of this agreement and the provisions of
the sale agreement, then solely as regards the relationships between Koor and/or Federmann
and the Trustee, the provisions of this agreement shall prevail. It is clarified that the
Trustee will only act in accordance with the provisions of this agreement and will not be
subject to the sale agreement. </FONT></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.2 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Koor and Federmann acknowledge that the agreement of the Trustee to serve as Trustee and
act in accordance with this agreement was given at their request and on the basis of their
obligations <I>vis a vis </I>the Trustee as stated in this agreement. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.3 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Koor and Federmann hereby undertake <I>vis a vis </I>the Trustee to fully bear all its
expenses incurred in relation to all matters involving the fulfillment of its function as
Trustee and in all that pertains to this agreement and to its implementation and
furthermore they permit the Trustee to deduct its expenses and professional fee from any
amount held by it on their behalf. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.4 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Israeli Law shall apply to the provisions of this agreement. The exclusive place of
jurisdiction in respect of any matter connected with its written provisions shall lie with
the competent courts in the Tel Aviv -Jaffa District, and no other court shall have
jurisdiction. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>12.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Notifications</U></B>  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12.1 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Notifications in accordance with this agreement shall be given in writing at the addresses
of the parties as specified at the head of this agreement or at such other addresses as
are notified by the parties in accordance with the provisions of this section. Any
notification that is sent by one party to another by registered mail shall be deemed to
have come to the knowledge of the addressee after three days have elapsed from the date of
its delivery to the Post Office, and notification that is delivered personally by 5 p.m.
on any business day &#151; shall be deemed to have been received immediately upon its
delivery, and if delivered after 5 p.m. on any business day &#151; shall be deemed to have
been delivered on the first day following its delivery. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12.2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This
agreement may be signed in the form of several copies and all copies of this agreement
shall together constitute one agreement.  </FONT></TD>
</TR>
</TABLE>
<BR>

<DIV STYLE="page-break-after:always"></DIV>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>AND IN WITNESS WHEREOF
WE HAVE DULY SIGNED:</FONT></H1>


<TABLE WIDTH="600" CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER">
<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;(-)<BR>
_______________________<BR>
<B>Koor Industries Ltd.<BR>
By:</B><BR>
<BR>
<BR>
_____________________________<BR>
<B>G. L. E. Trust Services Ltd.</B><BR>
<BR>
</FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;(-)<BR>
________________________<BR>
<B>Federmann Enterprises Ltd.<BR>
By: Messrs. Michael Federmann<BR>
and Dov Ninveh</B><BR>
<BR>
&nbsp;<BR>
</FONT></TD></TR>
</TABLE>


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