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<SEC-DOCUMENT>0001178913-08-003059.txt : 20081201
<SEC-HEADER>0001178913-08-003059.hdr.sgml : 20081201
<ACCEPTANCE-DATETIME>20081201114713
ACCESSION NUMBER:		0001178913-08-003059
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20081201
FILED AS OF DATE:		20081201
DATE AS OF CHANGE:		20081201

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Ellomay Capital Ltd.
		CENTRAL INDEX KEY:			0000946394
		STANDARD INDUSTRIAL CLASSIFICATION:	PRINTING TRADES MACHINERY & EQUIPMENT [3555]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			L3
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-26498
		FILM NUMBER:		081221273

	BUSINESS ADDRESS:	
		STREET 1:		ACKERSTEIN TOWERS
		STREET 2:		11 HAMENOFIM STREET, P.O.BOX 2148
		CITY:			HERZLIYA
		STATE:			L3
		ZIP:			46120
		BUSINESS PHONE:		011972-9-971-5613

	MAIL ADDRESS:	
		STREET 1:		ACKERSTEIN TOWERS
		STREET 2:		11 HAMENOFIM STREET, P.O.BOX 2148
		CITY:			HERZLIYA
		STATE:			L3
		ZIP:			46120

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NUR MACROPRINTERS LTD
		DATE OF NAME CHANGE:	19980331

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NUR ADVANCED TECHNOLOGIES LTD
		DATE OF NAME CHANGE:	19950607
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>zk86089.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        F:\EDGAR Filing\Ellomay Capital Ltd\86089\a86089.eep             -->
     <!-- Control Number: 86089                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Ellomay Capital Ltd                                              -->
     <!-- Project Name:   6-K                                                              -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>6-K</TITLE>
</HEAD>
<BODY>

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<HR ALIGN=LEFT WIDTH=100% SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE STYLE="margin-top: -10px">

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>UNITED STATES </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=4>SECURITIES AND EXCHANGE COMMISSION </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>Washington, D.C. 20549 </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>FORM 6-K </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>REPORT OF FOREIGN
PRIVATE ISSUER </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>PURSUANT TO RULE
13a-16 OR 15d-16 </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>UNDER THE SECURITIES
EXCHANGE ACT OF 1934 </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the month of
December 2008 </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>Commission File Number:
000-26498 </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Center Underline-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="5"><U><B>Ellomay Capital Ltd.</B></U> </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Translation of registrant&#146;s name into English) </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Center Underline-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Ackerstein Towers,
11 Hamenofim St., Herzliya 46120, Israel </U></FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Address of principal
executive office) </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indicate by check mark whether the
registrant files or will file annual reports under cover of Form 20-F or Form 40-F. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Form 20-F <FONT size="3" face="Wingdings">x
</font> Form 40-F <FONT size="3" face="Wingdings">o
</font> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indicate by check mark if the
registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101(b)(1): ______</FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indicate by check mark if the
registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101(b)(7): ______</FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indicate by check mark whether the
registrant by furnishing the information contained in this Form is also thereby furnishing
the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange
Act of 1934. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Yes <FONT size="3" face="Wingdings">o
</font> No <FONT size="3" face="Wingdings">x
</font> </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If "Yes" is marked,  indicate  below the file number  assigned to the  registrant  in  connection  with Rule  12g3-2(b):  82- _________</FONT></P>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>THIS FORM 6-K IS HEREBY INCORPORATED
BY REFERENCE INTO THE REGISTRANT&#146;S REGISTRATION STATEMENTS ON FORM F-3 (NOS.
333-144171, 333-115826, 333-114428, 333-47842 AND 333-92493) AND FORM S-8 (NOS. 333-102288
AND 333-92491), AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS SUBMITTED,
TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On December 1, 2008, Ellomay Capital
Ltd. (the &#147;Company&#148;) issued a press release announcing that the annual meeting
of shareholders will be held on Tuesday, December 30, 2008. The text of the press release
is attached hereto as Exhibit 1. The text of the notice of the annual meeting of
shareholders and proxy statement is attached hereto as Exhibit 2. A form of the proxy card
is attached hereto as Exhibit 3. </FONT></P>





<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The proxy statement includes a
proposal that is partially exempt from shareholders&#146; approval pursuant to the Israeli
Companies Regulations (Relief for Transactions with Interested Parties), 2000. As more
fully explained in the attached proxy statement, the Company must receive any opposition
to such exemption no later than 14 days following the date hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Shareholders wishing to express their
position on an agenda item for the annual meeting may do so by submitting a written
statement to the Company&#146;s offices at the above address no later than December 8,
2008. </FONT></P>







<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following documents are attached
hereto and incorporated herein by reference: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 1.</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Press Release dated December 1, 2008.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Exhibit Index Hang" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 2. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
       Notice of the annual general meeting of the shareholders and proxy statement. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 3. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
       Form of Proxy Card. </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>2</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Signatures </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized. </FONT></P>

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<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Ellomay Capital Ltd.<BR><BR>
<BR>By: /s/ <I>Yosef Zylberberg</I><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Yosef Zylberberg<BR>Interim Chief Executive Officer<BR>and Chief Financial Officer </FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated: December 1, 2008 </FONT></P>

<p align=center>
<font size=2>3</font></p>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>exhibit_1.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        F:\EDGAR Filing\Ellomay Capital Ltd\86089\a86089.eep             -->
     <!-- Control Number: 86089                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Ellomay Capital Ltd                                              -->
     <!-- Project Name:   6-K                                                              -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>6-K</TITLE>
</HEAD>
<BODY>

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<HR ALIGN=LEFT WIDTH=100% SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE STYLE="margin-top: -10px">

<P align=right><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 1</B></U> </FONT> </P>

<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><IMG SRC="ellomay.jpg"></FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ellomay Capital
Announces 2008 Annual Meeting of Shareholders </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Herzliya, Israel, December 1, 2008
&#150; <B>Ellomay Capital Ltd. (EMYCF.PK) (Ellomay or the Company)</B>, announced today
that it will hold its annual general meeting of shareholders on December 30, 2008 at 11:00
a.m. Israel time, at Ellomay&#146;s offices located at Ackerstein Towers, 11 Hamenofim
Street, Tower B, 5<SUP>th</SUP> Floor, Herzliya 46120, Israel. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The agenda of the shareholders&#146;
meeting is as follows: </FONT></P>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          election of Shlomo Nehama, Ran Fridrich, Hemi Raphael, Oded Akselrod and Anita
          Leviant as directors; </FONT></TD>
          </TR>
          </TABLE>
          <BR>





<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          reappointment of Kost Forer Gabbay &amp; Kasierer (a member of Ernst &amp; Young
          Global) as the independent auditors of the Company for the fiscal year ended
          December 31, 2008, and authorization with respect to the approval of their fees; </FONT></TD>
          </TR>
          </TABLE>
          <BR>







<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
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          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>review and approval of a reverse share split of the Company&#146;s ordinary shares at the ratio
of one-for-ten; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          approval of payment of directors&#146; fees to the directors of the Company; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          approval of the Company&#146;s entry into indemnification agreements with, the
          provision of exemptions to, and the procurement of a directors&#146; liability
          insurance policy for, Ran Fridrich and Shlomo Nehama; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          approval of the terms of a management services agreement among the Company,
          Meisaf Blue &amp; White Holdings Ltd. and Kanir Joint Investments (2005) Limited
          Partnership; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          receipt and consideration of the Auditors&#146; Report, the Directors Report and
          the Financial Statements of the Company for the fiscal year ended December 31,
          2007; and </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          amendment and restatement of the Company&#146;s Amended and Restated Articles of
          Association, as proposed by the Company&#146;s major shareholders, S. Nechama
          Investments (2008) Ltd. and Kanir Joint Investments (2005) Limited Partnership. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Shareholders of record as of the
close of business on November 28, 2008 are entitled to vote at the shareholders&#146;
meeting. Ellomay plans to mail a proxy statement which describes the proposals to be
considered at the shareholders&#146; meeting and related materials on or about December 2,
2008. The proxy statement and related materials will also be available in the
&#147;Investor Relations&#148; section of Ellomay&#146;s website at www.ellomay.com. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>About Ellomay Capital </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ellomay Capital (formerly NUR
Macroprinters Ltd.), a former leading supplier of wide-format inkjet production printers
for the printing industry, consummated the sale of its business to Hewlett-Packard Company
on February 29, 2008. </FONT></P>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Information Relating to
Forward-Looking Statements </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This press release contains
forward-looking statements that involve substantial risks and uncertainties. All
statements, other than statements of historical facts, included in this press release
regarding our plans and objectives of management are forward-looking statements. The use
of certain words, including the words &#147;estimate,&#148; &#147;project,&#148;
&#147;intend,&#148; &#147;expect,&#148; &#147;believe&#148; and similar expressions are
intended to identify forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. We may not actually achieve the plans,
intentions or expectations disclosed in our forward-looking statements and you should not
place undue reliance on our forward-looking statements. Actual results or events could
differ materially from the plans, intentions and expectations disclosed in the
forward-looking statements we make. Various important factors could cause actual results
or events to differ materially from those which may be expressed or implied by our
forward-looking statements. These and other risks and uncertainties associated with our
business are described in greater detail in the filings we make from time to time with
Securities and Exchange Commission, including our Annual Report on Form 20-F. The
forward-looking statements are made as of this date and Ellomay does not undertake any
obligation to update any forward-looking statements, whether as a result of new
information, future events or otherwise. </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Contact:
</U><BR>Yossy Zylberberg
<BR>Interim CEO and CFO
<BR>+972 (9) 971-5614
<BR><U>yossyz@ellomay.com</U> </FONT>
</P>

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<DOCUMENT>
<TYPE>EX-99
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<FILENAME>exhibit_2.htm
<TEXT>
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<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        \\Backup\office\EDGAR Filing\Ellomay Capital Ltd\86089\a86089.eep -->
     <!-- Control Number: 86089                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Ellomay Capital Ltd                                              -->
     <!-- Project Name:   6-K                                                              -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>6-K</TITLE>
</HEAD>
<BODY>

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<HR ALIGN=LEFT WIDTH=100% SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE STYLE="margin-top: -10px">

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


<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><IMG SRC="ellomay.jpg"></FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>ELLOMAY CAPITAL
LTD.</B><BR>Ackerstein Towers </FONT> <BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2">11 Hamenofim Street </FONT> <BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2">Herzliya 46120 </FONT> <BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2">Israel </FONT></P>

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<HR SIZE=1 NOSHADE WIDTH=25% ALIGN=center>

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<p ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>NOTICE OF ANNUAL
MEETING OF SHAREHOLDERS</B> </FONT> <BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>To be held on December 30, 2008<BR>11:00 a.m.</B> </FONT></P>


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<HR SIZE=1 NOSHADE WIDTH=25% ALIGN=center>


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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To Our Shareholders: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notice
is hereby given that the annual meeting of shareholders of Ellomay Capital Ltd. (also
referred to hereinafter as &#147;<B>Ellomay</B>&#148; or the &#147;<B>Company</B>&#148;)
will be held at our offices at Ackerstein Towers, 11 Hamenofim St., Herzliya 46120, Israel
on December 30, 2008 at 11:00 a.m., Israel time, and thereafter as it may be adjourned
from time to time (the &#147;<B>Shareholders</B> <B>Meeting</B>&#148;). </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
agenda of the meeting will be as follows:  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><I>Proposals
Presented by Our Board of Directors</I></U> </FONT> </P>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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 WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
elect five members of the Company&#146;s Board of Directors to hold office
          until the next annual meeting of shareholders and until their respective
          successors are duly elected and qualified (&#147;<B>Proposal 1</B>&#148;); </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
reappoint Kost Forer Gabbay &amp; Kasierer (a member of Ernst &amp; Young
          Global) as the independent auditors of the Company for the fiscal year ended
          December 31, 2008, and to authorize our Board of Directors to approve the
          remuneration of the independent auditors in accordance with the volume and
          nature of their services (&#147;<B>Proposal 2</B>&#148;); </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
review and approve a reverse share split of our ordinary shares at the ratio           of
one-for-ten and to empower the Company&#146;s Board of Directors to set the
          date for such reverse share split and to amend the Company&#146;s Amended and
          Restated Articles of Association and Memorandum of Association to effect such
          reverse share split (&#147;<B>Proposal  3</B>&#148;); </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>- i -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
approve the payment of directors&#146; fees to the directors of the Company           (&#147;<B>Proposal
4</B>&#148;); </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
approve the Company&#146;s entry into indemnification agreements with, the
          provision of exemptions to, and the procurement of a directors&#146; liability
          insurance policy for, Ran Fridrich and Shlomo Nehama (&#147;<B>Proposal
          5</B>&#148;); </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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>6. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
approve the terms of a management services agreement among the Company,           Meisaf
Blue &amp; White Holdings Ltd. and Kanir Joint Investments (2005) Limited
          Partnership (&#147;<B>Proposal 6</B>&#148;); </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
receive and consider the Auditors&#146; Report, the Directors Report and the
          Financial Statements of the Company for the fiscal year ended December 31,
2007;           and </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><I>Proposals
Presented at the request of Our Controlling Shareholders</I></U> </FONT> </P>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
amend and restate the Company&#146;s Amended and Restated Articles of
          Association, including changes to the quorum for general meetings, the maximum
          number of members of our Board of Directors, certain corporate actions that may
          require shareholders approval by a special majority and providing the Chairman
          of the Board, upon the occurrence of certain circumstances, with a casting
vote,           all as more fully described in the Proxy Statement and set forth on
Exhibit B           thereto (the &#147;<B>Shareholders&#146; Proposal</B>&#148;). </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Our
Board of Directors recommends that you vote in favor of Proposals 1 through 6 and does not
express an opinion as to the vote in connection with the Shareholders&#146; Proposal.</B>
All of the foregoing proposals are more fully described in the accompanying Proxy
Statement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Only
shareholders of record at the close of business on November 28, 2008 (the &#147;<B>Record
Date</B>&#148;) are entitled to notice of, and to vote at, the Shareholders Meeting or any
adjournment(s) thereof. On the Record Date, we had 73,786,428 issued and outstanding
ordinary shares. Each ordinary share is entitled to one vote on each matter to be voted on
at the Shareholders Meeting. Our Amended and Restated Articles of Association (as amended
or restated from time to time, the &#147;<B>Articles of Association</B>&#148;) do not
provide for cumulative voting for the election of directors or for any other purpose. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
for Proposal 3 and certain portions of the Shareholders&#146; Proposal, both relating to
the amendment of our Articles of Association and Memorandum of Association (the
&#147;<B>Memorandum</B>&#148;), each of the resolutions to be presented at the
Shareholders Meeting requires the affirmative vote of holders of at least a majority of
the ordinary shares of the Company voted in person or by proxy at the Shareholders Meeting
on the matter presented for passage. In addition, the approval of Proposal 5 and Proposal
6 is required to comply with special disinterested voting requirements as set forth below. </FONT></P>

<p align=center>
<font size=2>- ii -</font></p>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proposal
3, relating to the changes in our capital structure, will require the affirmative vote of
at least 75% of the ordinary shares of the Company voted in person or by proxy at the
Shareholders Meeting. In addition, as more fully described under &#147;Item 8&#148; of the
Proxy Statement, the approval of portions of the Shareholders&#146; Proposal providing
that the approval of certain corporate actions and transactions may, upon the occurrence
of certain circumstances, require the affirmative vote of at least 50.1% of our
outstanding ordinary shares, will require the affirmative vote of at least 50.1% of our
outstanding ordinary shares as of the Record Date, rather than a simple majority of those
shares present and voting, in person or by proxy, at the Shareholders Meeting. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proposal
5, relating to the indemnification, exemption and liability insurance of Messrs. Shlomo
Nehama and Ran Fridrich and Proposal 6, relating to the terms of the proposed management
services agreement, will each be adopted only if either (a) the majority of shares voted
at the meeting (without taking into account abstentions) includes at least one third (<SUP>1</SUP><I>/</I><SUB>3</SUB>)
of the shares of shareholders who do not have a personal interest in the approval of the
transaction and who are present and voting, in person or by proxy, at the Shareholders
Meeting, or (b) the total number of shares voted against the proposal by shareholders
without a personal interest does not exceed one percent (1%) of the aggregate voting
rights in the Company. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While
Proposal 5 is ordinarily subject to shareholder approval because it relates to the
indemnification, exculpation and insurance of our directors who are also deemed to be
controlling shareholders, it is partially exempt from such approval, solely in connection
with the procurement of directors&#146; liability insurance. The exemption is available
under the Companies Regulations (Relief for Transactions with Interested Parties), 2000
(the <B>&#147;Relief Regulations</B>&#148;) and pursuant to the determination of the Audit
Committee and Board of Directors of the Company described more fully in Item 5 below.
Nevertheless, pursuant to Regulation 1C(a) of the Relief Regulations, one or more of our
shareholders holding at least 1% of our issued share capital or our voting rights have the
right to oppose, in writing, such determination of the Audit Committee and Board of
Directors. ANY OPPOSITION MUST BE RECEIVED BY US NO LATER THAN 14 DAYS FOLLOWING THE
PUBLICATION OF THIS PROXY STATEMENT. In the event of such opposition, the procurement of
directors&#146; liability insurance for Messrs. Shlomo Nehama and Ran Fridrich will
require the approval of our shareholders by the special majority detailed above.
Accordingly, the approval of the procurement of directors&#146; liability insurance for
Messrs. Shlomo Nehama and Ran Fridrich will only be presented for shareholder approval at
the Shareholders Meeting if so required under the Relief Regulations. If shareholder
approval is not required under the Relief Regulations, then any votes and abstentions
submitted on a proxy for Proposal 5 will only be taken into account with respect to such
portion Proposal 5 that is not subject to the exemptions available under the Relief
Regulations. </FONT></P>

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<font size=2>- iii -</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
presence at the Shareholders Meeting, in person or by proxy, of two or more shareholders
holding more than 33<SUP>1</SUP><I>/</I><SUB>3</SUB>% of the voting rights of the Company, will constitute a quorum. All
ordinary shares represented in person or by proxy (including broker non-votes and shares
that abstain or do not vote with respect to one or more of the matters to be voted upon)
will be counted for purposes of determining whether a quorum exists. The votes of all
shareholders voting on a proposal are counted. Abstentions and broker non-votes will not
be treated as either a vote &#147;for&#148; or &#147;against&#148; a proposal. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Joint
holders of ordinary shares should note that, pursuant to Article 27.6 of the
Company&#146;s Articles of Association, the right to vote at the Shareholders Meeting will
be conferred exclusively upon the senior owner among the joint owners attending the
Shareholders Meeting, in person or by proxy, and for this purpose, seniority will be
determined by the order in which the names appear in our register of shareholders. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
expect to mail the Proxy Statement and the accompanying form of proxy attached hereto to
shareholders of record (as determined above) on or about December 2, 2008. All expenses of
this solicitation will be borne by the Company. In addition to the solicitation of proxies
by mail, directors, officers, and employees of the Company, without receiving additional
compensation, may solicit proxies by telephone, in person, or by other means. Brokerage
firms, nominees, fiduciaries, and other custodians have been requested to forward proxy
solicitation materials to the beneficial owners of ordinary shares of the Company held of
record by such persons, and the Company will reimburse such brokerage, nominees,
fiduciaries, and other custodians for reasonable out-of-pocket expense incurred by them in
connection therewith. Shareholders wishing to express their position on an agenda item for
the Shareholders Meeting may do so by submitting a written statement to the Company&#146;s
offices at the above address no later than December 8, 2008. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You
are cordially invited to attend the Shareholders Meeting. <B>Whether or not you plan to be
present at the Shareholders Meeting and regardless of the number of ordinary shares you
own, you are requested to complete and return the enclosed proxy, which is solicited by
the Company&#146;s Board of Directors, and mail it promptly in the accompanying envelope,
so that your votes may be recorded. Under the Company&#146;s Articles of Association, your
proxy must be received by 11:00 a.m., Israel time, on December 28, 2008, (two days prior
to the Shareholders Meeting), to be counted for the Shareholders Meeting. </B>If you are
present at the Shareholders Meeting and desire to vote in person, you may revoke your
appointment of proxy at the Shareholders Meeting so that you may vote your shares
personally. </FONT></P>

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<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By Order of the Board of Directors,<BR><BR>
<BR><I>/s/ Shlomo Nehama</I><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Shlomo Nehama<BR>Chairman of the Board of Directors </FONT></TD>
</TR>
</TABLE>
<BR>


<p align=center>
<font size=2>- iv -</font></p>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ELLOMAY CAPITAL LTD. </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ackerstein Towers </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>11 Hamenofim Street </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>Herzliya 46120 </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>Israel </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PROXY STATEMENT FOR AN
ANNUAL MEETING OF SHAREHOLDERS </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>To be held on December
30, 2008 </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>11:00 a.m. </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
annual meeting of shareholders of Ellomay Capital Ltd. will be held on December 30, 2008
at our offices, located at Ackerstein Towers, 11 Hamenofim Street, Herzliya 46120 Israel,
at 11:00 a.m., Israel time, for the purposes set forth in our Notice of Annual Meeting of
Shareholders. The enclosed form of proxy is solicited by our Board of Directors for use at
the Shareholders Meeting and at any adjournments of the Shareholders Meeting. </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
proxy materials are being mailed to our shareholders as of November 28, 2008, the Record
Date, on or about December 2, 2008. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
form of proxy for use at the Shareholders Meeting and a return envelope for the proxy are
enclosed. Upon the receipt of a properly signed and dated proxy in the form enclosed,
which is received in time and not revoked prior to the Shareholders Meeting, Mr. Ran
Fridrich, a member of our Board of Directors and a director nominee, and Mr. Yosef
Zylberberg, our Interim Chief Executive Officer and Chief Financial Officer, or either one
of them, will vote, as proxy, the ordinary shares represented thereby at the Shareholders
Meeting in accordance with the instructions indicated on the proxy, or, if no direction is
indicated, in accordance with the recommendation of our Board of Directors. In accordance
with our Articles of Association, your proxy must be received by us by 11:00 a.m., Israel
time, on December 28, 2008 (two days prior to the date of the Shareholders Meeting) in
order to be counted at the Shareholders Meeting. We know of no other matters to be
submitted at the Shareholders Meeting other than as specified in the Notice of Annual
Meeting of Shareholders included with this Proxy Statement. If any other business is
properly brought before the Shareholders Meeting, it is the intention of each of the
persons named as proxies to vote in respect thereof in accordance with his respective best
judgment. </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
proxy may be revoked at any time prior to its exercise by notice in writing of the
shareholder to us, delivered at our address above, indicating that its/his/her proxy is
revoked, by submitting another proxy with a later date, or by attending the Shareholders
Meeting and voting in person after properly requesting that the proxy submitted be revoked
(shareholders who aren&#146;t registered directly with our transfer agent, Continental
Stock Transfer &amp; Trust Company of New York, New York, must present a legal proxy from
their broker, bank or other nominee, in order to vote in person at the Shareholders
Meeting). </FONT></P>


<p align=center>
<font size=2>- 1 -</font></p>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PRINCIPAL SHAREHOLDERS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table sets forth information regarding the beneficial ownership of our ordinary
shares, by each person known by us, to the best of our knowledge, to be the beneficial
owner of more than 5% of our ordinary shares, as of November 15, 2008 (except as otherwise
indicated below). Each of our shareholders has identical voting rights with respect to its
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;To
our knowledge, except as otherwise indicated in the footnotes to this table, each
shareholder in the table has sole voting and investment power for the ordinary shares
shown as beneficially owned by them. </FONT></P>





<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE="1">Ordinary Shares<BR>
Beneficially Owned<SUP>(1)</SUP> </FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Percentage of Ordinary Shares<BR>
Beneficially Owned</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD WIDTH="66%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Shlomo Nehama (2)(4)</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>38,992,915</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>43.5</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Kanir Joint Investments (2005) Limited</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2">Partnership ("<B>Kanir</B>") (3)(4)(5) </FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>36,150,458</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>41.6</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>%</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Old Lane Luxemburg Master Fund S.a.r.l (6)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>4,814,815</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>6.4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Fortissimo Entities (7)</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>4,184,957</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>5.4</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>%</FONT></TD></TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD><HR SIZE=1 NOSHADE WIDTH=15% ALIGN=LEFT></TD>
</TR>
</TABLE>


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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As
used in this table, &#147;beneficial ownership&#148; means the sole or shared
                    power to vote or direct the voting or to dispose or direct the
disposition of                     any security as determined pursuant to Rule 13d-3
promulgated under the U.S.                     Securities Exchange Act of 1934, as
amended. For purposes of this table, a                     person is deemed to be the
beneficial owner of securities that can be acquired                     within 60 days
from November 15, 2008 through the exercise of any option or                     warrant.
Ordinary shares subject to options or warrants that are currently
                    exercisable or exercisable within 60 days are deemed outstanding for
computing                     the ownership percentage of the person holding such options
or warrants, but are                     not deemed outstanding for computing the
ownership percentage of any other                     person. The amounts and percentages
are based on a total of 73,786,428 ordinary                     shares outstanding as of
November 15, 2008. </FONT></TD>
</TR>
</TABLE>


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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>According
to information provided by the holders, the 38,992,915 ordinary shares
                    beneficially owned by Mr. Nehama consist of: (i) 22,661,551 ordinary
shares and                     currently exercisable warrants to purchase 10,067,172
ordinary shares held by S.                     Nechama Investments (2008) Ltd., an
Israeli company (&#147;<B>Nechama </B><B>Investments</B>&#148;), which together
constitute approximately 39% of the                     outstanding ordinary shares and
(ii) 412,961 ordinary shares and currently                     exercisable warrants to
purchase 5,851,231 ordinary shares held directly by Mr.                     Nehama, which
together constitute approximately 7.9% of the outstanding ordinary
                    shares. Mr. Nehama, who is our Chairman of the Board and a director
nominee, as                     the sole officer, director and shareholder of Nechama
Investments, may be deemed                     to indirectly beneficially own any
ordinary shares beneficially owned by Nechama                     Investments, which
constitute (together with his shares and warrants)                     approximately
43.5% of the outstanding ordinary shares. </FONT></TD>
</TR>
</TABLE>


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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>According
to information provided by the holder, Kanir is an Israeli limited
                    partnership. The holdings of Kanir include currently exercisable
warrants to                     purchase 13,076,620 ordinary shares. Kanir Investments
Ltd. (&#147;<B>Kanir                     Ltd.</B>&#148;), in its capacity as the general
partner of Kanir, has the voting                     and dispositive power over the
ordinary shares directly beneficially owned by                     Kanir. As a result,
Kanir Ltd. may be deemed to indirectly beneficially own the                     ordinary
shares beneficially owned by Kanir. Messrs. Hemi Raphael and Ran
                    Fridrich, who are members of our Board of Directors and director
nominees, are                     the sole shareholders and directors of Kanir Ltd. As a
result, they may be                     deemed to indirectly beneficially own the
ordinary shares beneficially owned by                     Kanir. Kanir Ltd. and Messrs.
Raphael and Fridrich disclaim beneficial ownership                     of such ordinary
shares. </FONT></TD>
</TR>
</TABLE>


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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
March 2008, Nechama Investments and Kanir entered into a shareholders
                    agreement that included, among other things, agreements as to the
voting of the                     Ellomay shares held by the parties and as to the
disposition of certain of the                     Ellomay shares held by the parties (the
&#147;<B>2008 Shareholders                     Agreement</B>&#148;). By virtue of the
2008 Shareholders Agreement, Mr. Nehama,                     Nechama Investments, Kanir,
Kanir Ltd., and Messrs. Raphael and Fridrich may be                     deemed to be
members of a group that holds shared voting power with respect to
                    45,735,389 ordinary shares and currently exercisable warrants to
purchase                     23,143,792 ordinary shares, which together constitute
approximately 71% of the                     outstanding ordinary shares, and holds
shared dispositive power with respect to                     36,967,000 ordinary shares,
which constitute 50.1% of the outstanding ordinary                     shares.
Accordingly, Mr. Nehama may be deemed to beneficially own approximately
                    73.1% of the outstanding ordinary shares. Each of Mr. Nehama and
Nechama                     Investments disclaims beneficial ownership of the ordinary
shares beneficially                     owned by Kanir. Each of Kanir, Kanir Ltd. and
Messrs. Raphael and Fridrich                     disclaims beneficial ownership of the
ordinary shares beneficially owned by                     Nechama Investments. A copy of
the 2008 Shareholders Agreement was filed with                     the Securities and
Exchange Commission (&#147;<B>SEC</B>&#148;) on March 31,                     2008 as
Exhibit 14 to an amendment to a Schedule 13D. </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>- 2 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
addition to the holdings of Kanir set forth in the table above, Bonstar
                    Investments Ltd. (&#147;<B>Bonstar</B>&#148;), an Israeli company and
a limited                     partner in Kanir, holds currently exercisable warrants to
purchase 846,906                     ordinary shares, which constitute approximately 1.1%
of the outstanding ordinary                     shares. Mr. Joseph Mor and Mr. Ishay Mor
are the sole shareholders of Bonstar                     and Mr. Joseph Mor serves as the
sole director of Bonstar. By virtue of their                     control over Bonstar,
Messrs. Joseph Mor and Ishay Mor may be deemed to                     indirectly
beneficially own the ordinary shares beneficially owned by Bonstar.
                    Bonstar also assisted Kanir in the financing of the purchase of a
portion of our                     ordinary shares. Accordingly, Bonstar may be deemed to
be a member of a group                     with Kanir and its affiliates, although there
are no agreements between Bonstar                     and either of such persons and
entities with respect to the ordinary shares                     beneficially owned by
each of them. Each of Bonstar and Messrs. Joseph Mor and                     Ishay Mor
disclaims beneficial ownership of the ordinary shares beneficially
                    owned by Kanir and Nechama Investments. The information provided in
the                     foregoing paragraph is based on public filings on an amendment to
a Schedule 13D                     made by Bonstar and Messrs. Joseph Mor and Ishay Mor,
the latest on May 6, 2008. </FONT></TD>
</TR>
</TABLE>


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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>According
to information provided by the holder, Old Lane Luxemburg Master Fund
                    S.a.r.l (&#147;<B>Old Lane</B>&#148;) is a private company registered
in                     Luxemburg. The 4,814,815 ordinary shares held by Old Lane are held
for the                     benefit of its shareholders as follows: (i) 2,207,408
ordinary shares and                     662,222 ordinary shares underlying currently
exercisable warrants held for the                     benefit of Old Lane Cayman Master
Fund L.P., a limited partnership registered in                     the Cayman Islands (&#147;<B>Old
Lane Cayman</B>&#148;), (ii) 625,926 ordinary                     shares and 187,778
ordinary shares underlying currently exercisable warrants                     held for
the benefit of Old Lane HMA Master Fund, L.P., a limited partnership
                    registered in the Cayman Islands (&#147;<B>Old Lane HMA</B>&#148;)
and (iii)                     870,370 ordinary shares and 261,111 ordinary shares
underlying currently                     exercisable warrants held for the benefit of Old
Lane U.S. Master Fund L.P., a                     limited partnership registered in
Delaware, USA (&#147;<B>Old </B><B>Lane                     US</B>&#148; and, together
with Old Lane Cayman and Old Lane HMA, the                     &#147;<B>Old Lane Entities</B>&#148;).
Old Lane disclaims beneficial ownership                     of the shares held for the
benefit of the Old Lane Entities. </FONT></TD>
</TR>
</TABLE>


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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>According
to information provided by the holders, the &#147;Fortissimo                     Entities&#148; consist
of Fortissimo Capital Fund GP, LP                     (&#147;<B>FFC-GP</B>&#148;),
Fortissimo Capital Fund (Israel), LP                     (&#147;<B>FFC-Israel</B>&#148;),
Fortissimo Capital Fund (Israel-DP), LP                     (&#147;<B>FFC-Israel-DP</B>&#148;)
and Fortissimo Capital Fund, LP (&#147;<B>FFC                     Cayman</B>&#148;).
FFC-GP and FFC Cayman are limited partnerships incorporated                     in the
Cayman Islands. FFC-Israel and FFC-Israel-DP are limited partnerships
                    incorporated in Israel. FFC-GP is the general partner of each of
FFC-Israel,                     FFC-Israel-DP and FFC Cayman, which invest together in
the framework of parallel                     private equity funds. The holdings of the
Fortissimo Entities consist of                     currently exercisable warrants to
purchase 3,742,048 ordinary shares held                     directly by FFC-Israel,
currently exercisable warrants to purchase 333,516                     ordinary shares
held directly by FFC-Israel-DP and currently exercisable                     warrants to
purchase 109,393 ordinary shares held directly by FFC Cayman. </FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MATTERS SUBMITTED TO
SHAREHOLDERS </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>ITEM 1</U> </FONT> </H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ELECTION OF DIRECTORS </FONT></H1>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Shareholders Meeting, the shareholders will elect directors to serve on our Board of
Directors. Our Articles of Association provide for a Board of Directors consisting of not
less than four and no more than twelve members, as may be determined from time to time at
a general meeting of our shareholders. The directors (other than the external directors)
are elected annually at our annual meeting of shareholders and remain in office until the
next annual meeting, unless a director has previously resigned, vacated his/her office, or
was removed in accordance with our Articles of Association. In addition, our Board of
Directors may elect additional directors to the Board of Directors. Pursuant to the
Israeli Companies Law, 1999 (the &#147;<B>Companies Law</B>&#148;), at least two external
directors must serve on the Board of Directors for a period of three (3) years each,
unless their office is vacated earlier in accordance with our then current articles of
association and the Companies Law, or extended for one additional three (3) year term. </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
March 30, 2008, three members of our Board, Yuval Cohen, Shmoulik Barashi and Eli Blatt,
resigned their position as members of our Board of Directors following the sale of the
ordinary shares and a majority of the warrants to purchase ordinary shares held by the
Fortissimo Entities to Kanir and Nechama Investments. Pursuant to our Articles of
Association, our Board members appointed Shlomo Nehama, Anita Leviant and Ran Fridrich as
directors, to serve until the next general meeting of our shareholders. The Board of
Directors is currently composed of the following seven directors: Shlomo Nehama, Ran
Fridrich, Hemi Raphael, Oded Akselrod, Anita Leviant, Lauri A. Hanover and Alon Lumbroso.
Shlomo Nehama, Ran Fridrich, Hemi Raphael, Oded Akselrod and Anita Leviant are standing
for reelection. Lauri A. Hanover and Alon Lumbroso are external directors whose current
service term shall expire in November 2009. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are unaware of any reason why any of the nominees, if elected, should be unable to serve
as a member of our Board of Directors. If any of the nominees are unable to serve, Ran
Fridrich and Yosef Zylberberg, the persons named in the proxy, or either one of them, will
vote the shares represented thereby &#147;<B>FOR</B>&#148; the election of other nominees
proposed by our Board of Directors. All nominees listed below have advised the Board of
Directors that they intend to serve as members of the Board of Directors if elected. </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 requirements of Section 224B(a) of the Companies Law, each of the director nominees
provided us with a &#147;Declaration of Competence&#148; prior to the mailing of this
proxy statement. Such declarations are available for review at our offices, at the address
set forth above, during regular business hours. </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
following information is supplied with respect to each person nominated and recommended to
be elected by our Board of Directors and is based upon our records and information
furnished to the Board of Directors by the nominees. </FONT></P>

<p align=center>
<font size=2>- 4 -</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
nominees for directors are: </FONT></P>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH ALIGN="Left"><FONT FACE="Times New Roman" SIZE=1>Name</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=1>Age</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH align=left><FONT FACE="Times New Roman" SIZE=1>Position with the Company</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE align=left></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD WIDTH="30%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2">Shlomo Nehama<SUP>(1)</SUP> </FONT></TD>
     <TD WIDTH="7%" ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=2>53&nbsp;</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="60%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Chairman of the Board and Director</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2">Ran Fridrich<SUP>(1)</SUP> </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=2>55&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Director</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Hemi Raphael</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=2>57&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Director</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2">Oded Akselrod<SUP>(2)</SUP> </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=2>62&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Director</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Anita Leviant</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=2>54&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Director</FONT></TD></TR>
</TABLE>
<BR>


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<TR VALIGN=TOP>
<TD><HR SIZE=1 NOSHADE WIDTH=15% ALIGN=LEFT> </TD>
</TR>
</TABLE>


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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Member
of the Company&#146;s Stock Option &amp; Compensation Committee. </FONT></TD>
</TR>
</TABLE>


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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Member
of the Company&#146;s Audit Committee. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Shlomo
Nehama</I> has served as a director and Chairman of the Board of Ellomay since March 2008.
From 1998 to 2007, Mr. Nehama served as the Chairman of the Board of Bank Hapoalim B.M.,
one of Israel&#146;s largest banks. In 1997, together with the late Ted Arison, he
organized a group of American and Israeli investors who purchased Bank Hapoalim from the
State of Israel. From 1992 to 2006, Mr. Nehama served as the Chief Executive Officer of
Arison Investments. From 1982 to 1992, Mr. Nehama was a partner and joint managing
director of Eshed Engineers, a management consulting firm. Mr. Nehama is a graduate of the
Technion &#151; Institute of Technology in Haifa, Israel, where he earned a degree in
Industrial Management and Engineering. Mr. Nehama received an honorary doctorate from the
Technion for his contribution to the strengthening of the Israeli economy. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Ran
Fridrich</I> has served as a director of Ellomay since March 2008. Mr. Fridrich is the
co-founder and executive director of Oristan, Investment Manager, an investment manager of
CDO Equity and Mezzanine Funds and a Distress Fund, established in June 2004. In addition,
Mr. Fridrich is a consultant to Capstone Investments, CDO Repackage Program, since January
2005. In January 2001 Mr. Fridrich founded the Proprietary Investment Advisory in Israel,
an entity focused on fixed income securities, CDO investments and credit default swap
transactions, and served as its investment advisor through January 2004. Prior to that,
Mr. Fridrich served as the chief executive officer of two packaging and printing Israeli
companies, Lito Ziv, a public company, from 1999 until 2001 and Mirkam Packaging Ltd. from
1983 until 1999. Mr. Fridrich also serves as a director of Cargal Ltd. since September
2002. Mr. Fridrich is a graduate of the Senior Executive Program of Tel Aviv University. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Hemi
Raphael</I> has served as a director of Ellomay since June 2006. Mr. Raphael is an
entrepreneur and a businessman involved in various real estate and financial investments.
Mr. Raphael also serves as a director of Cargal Ltd. since May 2004. Prior thereto, from
1984 to 1994, Mr. Raphael was a partner at the law firm of Goldberg Raphael &amp; Co. Mr.
Raphael holds an LLB degree from the School of Law at the Hebrew University of Jerusalem
and he is a member of the Israeli Bar Association and the California Bar Association. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Oded
Akselrod</I> has served as a director of Ellomay since February 2002. Mr. Akselrod was the
general manager of the Investment Corp. of United Mizrahi Bank Ltd., a wholly owned
subsidiary of United Mizrahi Bank Ltd. that was merged into United Mizrahi Bank Ltd. on
October 2004. Prior to joining the Investment Corp. of United Mizrahi Bank, from 1994 to
1997, Mr. Akselrod held the position of general manager of Apex-Leumi Partners Ltd. as
well as Investment Advisor of Israel Growth Fund. Prior thereto, from 1991 to 1994, Mr.
Akselrod served as general manager of Leumi &amp; Co. Investment Bankers Ltd. Mr. Akselrod
began his career in various managerial positions in the Bank Leumi Group including: member
of the management team of Bank Leumi, deputy head of the international division, head of
the commercial lending department of the banking division, member of all credit committees
at the Bank, assistant to Bank Leumi&#146;s CEO and head of the international lending
division of Bank Leumi Trust Company of New York. Mr. Akselrod holds a Bachelor&#146;s
degree in Agriculture Economics from Hebrew University, Jerusalem and an MBA degree from
Tel Aviv University. Mr. Akselrod is also a director of Gadish Global Ltd., Gadish
Investments in Provident Funds Ltd., Gadish Global Financial Services (2007) Ltd., Geva
Dor Investments Ltd., Shalag Industries Ltd. and Psagot Investment House Ltd. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Anita
Leviant</I> has served as a director of Ellomay since March 2008. Ms. Leviant heads LA
Global Consulting, a practice specializing in consulting and leading global and financial
projects and cross border transactions. For a period of twenty years, until 2005, Ms.
Leviant held several senior positions with Hapoalim Banking group including EVP Deputy
Head of Hapoalim Europe and Global Private Banking and EVP General Global Counsel of the
group, and served as a director in the overseas subsidiaries of Bank Hapoalim. Prior to
that, Ms. Leviant was an associate in GAFNI &amp; CO. Law Offices in Tel Aviv where she
specialized in Liquidation, Receivership and Commercial Law and was also a Research
Assistant to the Law School Dean in the Tel Aviv University specialized in Private
International Law. Ms. Leviant holds a LL.B degree from Tel Aviv University Law School and
is a member of both the Israeli and the New York State Bars. Ms. Leviant currently serves
as Deputy Chairman of the Israel-British Chamber of Commerce, chairman of the Capital
Markets Committee and as a member of the advisory board of Private Courts to Israel Ltd. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information
about our external directors: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Lauri
A. Hanover</I> has served as an external director of Ellomay since November 2003. Ms.
Hanover serves as Chief Executive Officer of Gross, Kleinhendler, Hodak, Halevy and
Greenberg &amp; Co. since January 2008. Prior to that, she served as senior vice president
and chief financial officer of Lumenis Ltd. from 2004 through 2007 and as the corporate
vice president and chief financial officer of NICE Systems Ltd. from 2000 to 2004. She
previously served as executive vice president and chief financial officer of Sapiens
International Corporation N.V., from 1997 to 2000. From 1984 to 1997, Ms. Hanover served
in a variety of financial management positions, including corporate controller, at Scitex
Corporation Ltd. and from 1981 to 1984 as financial analyst at Philip Morris Inc.
(Altria). Ms. Hanover holds a Bachelor&#146;s degree in finance from the Wharton School of
Business and a Bachelor-of-Arts degree from the College of Arts and Sciences, both of the
University of Pennsylvania. Ms. Hanover also holds a Master&#146;s degree in business
administration from New York University. Ms. Hanover qualifies as an external director
according to the Companies Law. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Alon
Lumbroso</I> has served as an external director of Ellomay since November 2006. Mr.
Lumbroso serves as the Chief Executive Officer of Larotec Ltd. since the end of 2005. Mr.
Lumbroso previously served as Chief Executive Officer of Mindguard Ltd., from 2003 to
2004. From 2000 to 2003, Mr. Lumbroso served as the managing director of the European
subsidiary of Creo, Inc. Prior to that, Mr. Lumbroso served in a various executive
positions, including VP Operations, VP Marketing and managing director of the Asian
Pacific subsidiary of Scitex Corporation. In his positions with Scitex Corporation and
Creo, Mr. Lumbroso was responsible for sales, marketing and service of prepress and
digital printing equipment, including wide format digital printers. Mr. Lumbroso serves as
the Chairman of Bioexplorers Ltd. and as a director of Larotec Ltd. Mr. Lumbroso holds an
MBA from Bar Ilan University and a B.Sc. in Industrial Engineering from Tel-Aviv
University. Mr. Lumbroso qualifies as an external director according to the Companies Law. </FONT></P>

<p align=center>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries,
fees, commissions and bonuses paid with respect to all of our directors and senior
management as a group (including the members of our senior management who left during
2008) in the fiscal year ended December 31, 2007 was $2.8 million, out of which an amount
of $0.2 million was related to pension, retirement and other similar benefits. </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
approval of this proposal requires the affirmative vote of a majority of the ordinary
shares of the Company voted in person or by proxy at the Shareholders Meeting. </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Shareholders Meeting, our Board of Directors will propose that the following
resolution be adopted: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;RESOLVED,
to elect each of Shlomo Nehama, Ran Fridrich, Hemi Raphael, Oded Akselrod and Anita
Leviant, as directors of the Company to hold office until the next annual meeting of the
Company&#146;s shareholders and until their respective successors are duly elected and
qualified.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders
may specify the names of the directors for which they wish to withhold their vote on the
attached proxy card. Upon the receipt of a properly signed and dated proxy and unless
otherwise instructed in the proxy, either of the persons named in the enclosed proxy will
vote the shares represented thereby <B>&#147;FOR</B>&#148; the above-mentioned proposal. </FONT></P>

<p align=center>
<font size=2>- 7 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>ITEM 2</U> </FONT> </H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>REAPPOINTMENT OF
INDEPENDENT AUDITORS </FONT></H1>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders
will be asked to reappoint Kost Forer Gabbay &amp; Kasierer, a member of Ernst &amp; Young
Global, as our independent auditors for the year ending December 31, 2008 and to authorize
the Board of Directors, following the approval of the Audit Committee, to approve their
fees in accordance with the volume and nature of their services. Kost Forer Gabbay &amp;
Kasierer have been our independent auditors since 1995. </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
following table sets forth the fees paid by us and our subsidiaries to Ernst &amp; Young
during 2006 and 2007: </FONT></P>





<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=6><FONT FACE="Times New Roman" SIZE=1>(in thousands of U.S. dollars)</FONT><HR WIDTH=98% SIZE=1 COLOR=BLACK NOSHADE></TH>
</TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>2006</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>2007</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD WIDTH="63%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2">Audit Fees<SUP>(1)</SUP> </FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="8%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD WIDTH="11%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 263</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD WIDTH="11%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 242</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Audit-Related Fees</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2">Tax Fees<SUP>(2)</SUP> </FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>  74</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 157</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>All Other Fees</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#808080 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#808080 SIZE=1></TD><TD></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 337</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 399</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#808080 SIZE=3></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#808080 SIZE=3></TD><TD></TD></TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD><HR SIZE=1 NOSHADE WIDTH=15% ALIGN=LEFT> </TD>
</TR>
</TABLE>


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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Professional
services rendered by our independent registered public accounting firm for the audit of
our annual financial statements or services that are normally provided by the accountants
in connection with statutory and regulatory filings or engagements. </FONT></TD>
</TR>
</TABLE>


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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Professional
services rendered by our independent registered public accounting                firm for
international and local tax compliance and tax advice services,                including
approved enterprise issues and expatriate individual tax calculations. </FONT></TD>
</TR>
</TABLE>
<BR>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
approval of this proposal requires the affirmative vote of a majority of the ordinary
shares of the Company voted in person or by proxy at the Shareholders Meeting. </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Shareholders Meeting, our Board of Directors will propose that the following
resolution be adopted: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;RESOLVED,
to reappoint Kost Forer Gabbay &amp; Kasierer (a member of Ernst &amp; Young Global) as
the independent auditors of the Company for the fiscal year ended December 31, 2008, and
until the next annual meeting of shareholders, and that the Board of Directors, following
the approval of the Audit Committee, be, and it hereby is, authorized to approve the
payment of fees of said independent auditors, considering the volume and nature of their
services.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the receipt of a properly signed and dated proxy and unless otherwise instructed in the
proxy, either of the persons named in the enclosed proxy will vote the shares represented
thereby <B>&#147;FOR&#148;</B> the above-mentioned proposal. </FONT></P>


<p align=center>
<font size=2>- 8 -</font></p>
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<page>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>ITEM 3</U> </FONT> </H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>APPROVAL OF A
ONE-FOR-TEN REVERSE SHARE SPLIT AND CORRESPONDING <BR>AMENDMENTS TO THE COMPANY&#146;S
MEMORANDUM AND ARTICLES OF ASSOCIATION</FONT></H1>


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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
ordinary shares were traded on the NASDAQ National Market between October 1995 and July
2003. Due to our failure to meet the minimum price per share requirement, in July 2003 we
transferred our ordinary shares to the NASDAQ Capital Market, where they were traded until
May 2005. As a result of our failure to comply with the minimum stockholders&#146; equity
requirement for continued listing, our ordinary shares were delisted from the NASDAQ
Capital Market on May 19, 2005 and are currently quoted in the over-the-counter market in
the &#147;Pink Sheets&#148; under the symbol &#147;EMYCF.PK.&#148; </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 consummation of the sale of our wide-format printing business to Hewlett-Packard
Company (the &#147;<B>HP Transaction</B>&#148;), as of the date hereof we meet the minimum
NASDAQ Global Market stockholders&#146; equity initial listing requirement. However, we
cannot at this time list our shares on the NASDAQ Global Market due to various reasons,
among which are our lack of operations and the fact that our ordinary shares have traded
at prices ranging between $0.47 and $0.75 in the period January 1, 2008 &#150; October 30,
2008 and therefore we do not currently meet the minimum NASDAQ Global Market bid price
initial listing requirement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
Board of Directors believes that a one-for-ten reverse share split, whereby ten of our
ordinary shares, NIS 1.00 nominal value each (the &#147;<B>Old Ordinary Shares</B>&#148;)
will be replaced by one ordinary share, NIS 10.00 nominal value (the &#147;<B>New Ordinary
Share</B>&#148;), is the only effective way to increase our share price to over $5.00 in
order to comply with the minimum bid price initial listing requirements of the NASDAQ
Global Market. Our intention at this time is to implement the reverse share split prior to
the closing of a business combination and to attempt to list our shares on the NASDAQ
Global Market in conjunction with the closing of such business combination. Therefore, our
Board of Directors will be authorized to determine the timing of the reverse share split
and also to determine not to implement the reverse share split, all based on our Board of
Directors&#146; judgment of our best interests. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>We
cannot predict if and when our ordinary shares will begin trading on the NASDAQ Global
Market or any other NASDAQ market and cannot assure you that following the reverse share
split the market price per each of our ordinary shares will either exceed or remain in
excess of the $5.00 per share minimum bid price as required to meet the initial listing
requirements for the NASDAQ Global Market. In addition, we cannot predict whether, or
assure you that, we will otherwise meet the initial listing requirements and thereafter
the continued listing requirements of the NASDAQ Global Market.</B> </FONT></P>

<p align=center>
<font size=2>- 9 -</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Risks
Associated with the Reverse Share Split</b> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While
our Board of Directors believes that the potential advantages of the reverse share split
outweigh the risks associated with such reverse split, if we do effect a reverse share
split we cannot assure you: </FONT></P>

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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 size="2" face="Wingdings 2">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>That
the market price per New Ordinary Share will rise in accordance with the reverse split
ratio (i.e. will be equal to ten times the market price per Old Ordinary Share); </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 size="2" face="Wingdings 2">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>That
the reverse share split will result in a per New Ordinary Share price that will attract
brokers or investors who do not trade in lower-priced stocks; </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 size="2" face="Wingdings 2">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>That
the liquidity of our ordinary shares will not be adversely impacted by the reduced number
of outstanding New Ordinary Shares following the reverse share split; </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 size="2" face="Wingdings 2">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>That
implementing the reverse share split will not be perceived in a negative manner by
investors, analysts or other stock market participants; and </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 size="2" face="Wingdings 2">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>That
the reverse share split will not result in some shareholders owning &#147;odd-lots&#148; of
less than 100 of our New Ordinary Shares, potentially resulting in higher brokerage
commissions and other transaction costs than the commissions and costs of transactions in
&#147;round-lots&#148; of even multiples of 100 shares. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
market price of our New Ordinary Shares will also be primarily determined by our financial
performance and future investments and other factors beyond our control, such as the
performance of the Israeli economy and of the global economy, all of which are unrelated
to the number of shares outstanding. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Principal
Effects of the Reverse Share Split</b> </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
reverse share split will reduce the number of our authorized shares from 170,000,000 to
17,000,000, reduce the number of issued and outstanding shares from 73,786,428 to
approximately 7,378,650 (the exact number will be determined based on the results of
rounding of fractional shares) and the nominal value of each of our ordinary shares will
be increased from NIS 1.00 to NIS 10.00. In addition, all outstanding options and warrants
entitling the holders thereof to purchase our ordinary shares will enable such holders to
purchase, upon exercise of their options or warrants, one-tenth
(<SUP>1</SUP>/<SUB>10</SUB>) of the number of ordinary shares that such holders would
have been able to purchase upon exercise of their options or warrants immediately
preceding the reverse share split at an exercise price equal to ten (10) times the
exercise price specified before the reverse share split, resulting in approximately the
same aggregate price being required to be paid upon exercise thereof as would have been
required to be paid upon exercise thereof immediately preceding the reverse share split;
and the number of shares reserved for issuance(including shares underlying outstanding
options) under our 1998 Share Option Plan for Non-Employee Directors and 2000 Stock Option
Plan will be reduced to one-tenth (<SUP>1</SUP>/<SUB>10</SUB>) of the number of shares
currently reserved for issuance under such plans from 665,833 shares to 66,583 shares and
from 7,272,028 shares to 727,203 shares, respectively. </FONT></P>

<p align=center>
<font size=2>- 10 -</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
reverse share split will be effected simultaneously for all of our Old Ordinary Shares,
and the exchange ratio of one New Ordinary Share for ten Old Ordinary Shares will be the
same for all of our ordinary shares. The reverse share split will affect all of our
shareholders uniformly and will not affect any of our shareholders&#146; percentage
ownership interests, except to the extent that the reverse share split results in any of
our shareholders owning a fractional share (see &#147;Fractional Shares&#148; below). New
Ordinary Shares issued pursuant to the reverse share split will remain fully paid and
non-assessable. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Fractional
Shares</b> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
order to avoid the expense and inconvenience of issuing fractional shares, no fractional
shares will be issued as a result of the reverse share split. Instead, all fractional
shares which are one-half share or more will be increased to the next higher whole number
of shares and all fractional shares which are less than one-half share will be decreased
to the next lower whole number of 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;<b>Certain
U.S. Federal Income Tax Consequences</b> </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
following is a summary of certain U.S. federal income tax consequences arising from the
reverse share split. This summary is based upon current law, including the United States
Internal Revenue Code of 1986, as amended (the &#147;<B>Code</B>&#148;), Treasury
Regulations promulgated thereunder, administrative pronouncements and judicial decisions
relating thereto, all of which are subject to change or differing interpretations,
possibly on a retroactive basis. This summary is limited to U.S. federal income tax law,
and does not consider estate or gift tax consequences, the alternative minimum tax, U.S.
state or local tax consequences, or taxation under the laws of any other jurisdiction.
This summary is further limited to holders that hold our Old Ordinary Shares as capital
assets within the meaning of Section 1221 of the Code, and does not address all aspects of
U.S. federal income taxation that may be relevant to holders in light of their particular
circumstances (e.g., persons who acquired our Old Ordinary Shares as compensation or
persons who hold our Old Ordinary Shares as part of a straddle, &#147;hedge&#148; or
&#147;conversion transaction&#148; with other investments) or to certain types of holders
subject to special treatment under the U.S. federal income tax laws, such as dealers in
securities or currencies, tax-exempt plans and organizations, real estate investment
trusts, regulated investment companies, life insurance companies, banks or other financial
institutions, grantor trusts, certain former citizens or long-term residents of the United
States, persons that have a functional currency other than the U.S. dollar and persons
that own directly or by attribution at least 10% of our voting power. Accordingly,
shareholders are urged to consult with their own tax advisors to determine the tax
consequences applicable to their individual situations. The U.S. federal income tax
treatment of a partner in a partnership (or other entity classified as a partnership for
U.S. federal income tax purposes) that holds our Old Ordinary Shares generally will depend
on such partner&#146;s particular circumstances and on the activities of the partnership.
Partners in such partnerships should consult their own tax advisors. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally,
the reverse share split will not result in the recognition of gain or loss for U.S.
federal income tax purposes. The total adjusted tax basis of the aggregate number of New
Ordinary Shares will be the same as the total adjusted basis of the aggregate number of
Old Ordinary Shares held by a shareholder immediately prior to the reverse share split and
the holding period of the New Ordinary Shares after the reverse share split will include
the holding period of the Old Ordinary Shares held prior to the reverse share split. No
gain or loss will be recognized by us as a result of the reverse share split. </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
tax advice contained herein was not intended or written to be used, and it cannot be used,
for the purpose of avoiding U.S. federal tax penalties that may be imposed on you.
Further, the tax advice in this document was written to support the promotion or marketing
of the transaction or matter discussed herein. You and any other person reading the tax
advice in this document should seek advice based on your, his or her particular
circumstances from an independent tax advisor. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Certain
Israeli Tax Consequences</b> </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
following discussion summarizing certain Israeli income tax consequences is based on the
Israeli Income Tax Ordinance [New Version], 1961, as amended, and the policy of the
Israeli Tax Authority as currently in place, and is for general information only.
Shareholders are urged to consult their own tax advisors to determine the particular
consequences to them. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally,
a reverse share split will be viewed for Israeli tax purposes as a sale of the Old
Ordinary Shares held by each shareholder, with the consideration being the New Ordinary
Shares received as a result of the reverse share split. Therefore, the reverse share split
will generally be viewed as a tax event for Israeli tax purposes and will result in the
recognition of gain or loss for Israeli income tax purposes, unless an applicable
exemption is provided in Israeli tax law or under an applicable treaty for the prevention
of double taxation which exists between the State of Israel and the country of residence
of the shareholder. However, we approached the Israeli Tax Authority in order to obtain an
advanced tax ruling, prior to the implementation of the reverse share split, which will
provide that the reverse share split will not be viewed as a &#147;tax event&#148; for
Israeli tax purposes for us and for our shareholders. We cannot assure you that we will be
able to obtain this ruling and, in the event such ruling is obtained, whether or not it
will be subject to certain conditions and limitations. We expect that our Board of
Directors will take the fact that a ruling was not obtained or that conditions and
limitations are included in a ruling that was obtained into consideration when resolving
when, and if, to implement the reverse share split. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Exchange
of Share Certificates</b> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
our shareholders approve the reverse share split, then following a decision of our Board
of Directors to effect the reverse share split, we will file an amendment to Section 4 of
our Memorandum of Association and Article 4 of our Articles of Association with the
Israeli Registrar of Companies, so that they comply with the reverse share split being
effected. Such amendment shall state the time that the reverse share split will become
effective (the <B>&#147;Effective Date</B>&#148;). Beginning at the Effective Date, each
certificate representing Old Ordinary Shares will be deemed for all corporate purposes to
evidence ownership of the New Ordinary Shares (at a quantity equal to one-tenth of the
number stated on the certificate representing Old 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;As
soon as practicable after the Effective Date, our shareholders will be notified that the
reverse share split has been effected. We expect that our transfer agent, Continental
Stock Transfer &amp; Trust Company, will act as exchange agent for purposes of
implementing the exchange of stock certificates. Holders of Old Ordinary Shares will be
asked to surrender to the exchange agent certificates representing Old Ordinary Shares in
exchange for certificates representing New Ordinary Shares in accordance with the
procedures to be set forth in the letter of transmittal that will be delivered to our
shareholders. No new certificates will be issued to a shareholder until such shareholder
has surrendered such shareholder&#146;s outstanding certificate(s), together with the
properly completed and executed letter of transmittal, to the exchange agent. Any Old
Ordinary Shares submitted for transfer, whether pursuant to a sale, other disposition or
otherwise, will, subject to the fulfillment of regulatory conditions and our requirements,
automatically be exchanged for New Ordinary Shares, pursuant to the reverse share split
ratio. Each certificate representing New Ordinary Shares issued in connection with the
reverse share split will continue to bear any legends that were borne by the surrendered
certificates representing the Old Ordinary Shares. SHAREHOLDERS SHOULD NOT DESTROY ANY
STOCK CERTIFICATES AND SHOULD NOT SUBMIT ANY CERTIFICATES UNTIL REQUESTED TO DO SO. </FONT></P>



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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to Section 24(1) of the Companies Law, the approval of this proposal requires the
affirmative vote of 75% of the ordinary shares of the Company voted in person or by proxy
at the Shareholders Meeting (due to the fact that it requires the amendment of our
Memorandum). </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Shareholders Meeting, the Board of Directors will propose that the following
resolution be adopted: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;RESOLVED,
to effect a reverse share split of the Company&#146;s Ordinary Shares (on the effective
date to be determined by the Board) where each ten Ordinary Shares NIS 1.00 nominal value
per share will be consolidated into one single Ordinary Share of NIS 10.00 nominal value,
such that the registered share capital of the Company will be divided into 17,000,000
Ordinary Shares NIS 10.00 nominal value each, ranking pari passu in all respects, as
recommended by the Board of Directors. All fractional shares which are one-half share or
more will be increased to the next higher whole number of shares and all fractional shares
which are less than one-half share will be decreased to the next lower whole number of
shares. Concurrently with the reverse share split, it is hereby resolved to amend Article
4 of the Company&#146;s Articles of Association and Section 4 of the Company&#146;s
Memorandum of Association accordingly, to comply with the reverse share split effected. To
authorize the Company&#146;s Board of Directors to determine the timing of the reverse
share split and also to determine not to implement the reverse share split, all based on
the Company&#146;s Board of Directors&#146; judgment of the Company&#146;s best
interests.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the receipt of a properly signed and dated proxy and unless otherwise instructed in the
proxy, either of the persons named in the enclosed proxy will vote the shares represented
thereby <B>&#147;FOR&#148;</B> the above-mentioned proposal. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>ITEM 4</U> </FONT> </H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>APPROVAL OF PAYMENT OF
DIRECTORS&#146; FEES TO THE COMPANY&#146;S DIRECTORS </FONT></H1>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
previously approved by our shareholders, we currently pay Oded Akselrod and our external
directors, Lauri A. Hanover and Alon Lumbroso, an annual payment of $8,000 and additional
payments of $500 per meeting and $250 per committee meeting (together, the
<B>&#147;Directors&#146; Fees</B>&#148;). As approved by our shareholders, these directors
and any of our current and future non-executive directors are also entitled to receive an
annual grant of options to purchase 10,000 ordinary shares under the terms and conditions
set forth in our 1998 Non-Employee Director Share Option Plan (the
&#147;<B>Directors&#146; Options</B>&#148;). </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 Companies Law, the terms of compensation of members of our Board of Directors
require the approval of our Audit Committee, Board of Directors and shareholders. Our
Audit Committee and our Board of Directors approved, and recommend that our shareholders
approve, the payment of Directors&#146; Fees to Anita Leviant and to any future directors,
commencing upon the date of their respective appointment. This proposal does not apply to
Shlomo Nehama, Ran Fridrich and Hemi Raphael, all of whom are members of our Board and
director nominees, who will be compensated pursuant to the Management Services Agreement
discussed in Item 6 below and who have, in connection with such Management Services
Agreement, waived their right to receive the Directors&#146; Fees and the Directors&#146;
Options. </FONT></P>








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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
approval of this proposal requires the affirmative vote of a majority of the ordinary
shares of the Company voted in person or by proxy at the Shareholders Meeting. </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Shareholders Meeting, the Board of Directors will propose that the following
resolution be adopted: </FONT></P>





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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;RESOLVED,
to approve the payment of an annual amount of $8,000 and additional payments of $500 per
meeting and $250 per committee meeting to Anita Leviant and to any future directors of the
Company, as applicable, commencing upon the date of their respective appointment.&#148; </FONT></P>







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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the receipt of a properly signed and dated proxy and unless otherwise instructed in the
proxy, either of the persons named in the enclosed proxy will vote the shares represented
thereby <B>&#147;FOR&#148;</B> the above-mentioned proposal. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>ITEM 5</U> </FONT> </H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>APPROVAL OF
INDEMNIFICATION, EXEMPTION AND LIABILITY INSURANCE <BR>TO SHLOMO NEHAMA AND RAN FRIDRICH </FONT></H1>

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

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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 Companies Law, the provision of indemnification, exemption and liability insurance
to members of our Board of Directors requires the approval of our Audit Committee, Board
of Directors and our shareholders. At our shareholders meeting held on October 27, 2005,
our shareholders approved, among other things, the procurement and maintenance of
directors and officers liability insurance covering our directors serving from time to
time, the entering into indemnification agreements, a form of which was attached as
Exhibit E to the proxy statement filed with the SEC on October 14, 2005 (the
&#147;<B>October 2005 Proxy Statement</B>&#148;), with our then current and future
directors and the granting of exemption letters, a form of which was attached as Exhibit F
to the October 2005 Proxy Statement, to our then existing and future directors. However,
as certain of the members of our Board of Directors may be deemed to be &#147;controlling
shareholders,&#148; the provision to them of indemnification, exemption and liability
insurance is brought before our shareholders again. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
Audit Committee and Board of Directors approved, and recommend that our shareholders
approve, the entering into indemnification agreements with, the provision of exemptions to
and the inclusion in our current and future directors and officers liability insurance
policy of, Messrs. Shlomo Nehama and Ran Fridrich, all in accordance with the previously
approved and existing arrangements with the current members of our Board of Directors.
Messrs. Nehama and Fridrich were appointed as members of our Board of Directors in March
2008 and are director nominees, and the foregoing resolution, if approved, will provide
them with the indemnification, exemption and liability insurance, all effective as of the
date of their initial appointment. </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.
          Shlomo Nehama, our Chairman of the Board and a director nominee, and Mr. Ran
          Fridrich, a member of our Board of Directors and a director nominee, are each
          deemed to be our &#147;controlling shareholders&#148; for purposes of Section
          268 of the Companies Law due to holdings of Nechama Investments and Kanir as
set           forth above, their respective positions with such entities and the 2008
          Shareholders Agreement. Therefore, pursuant to Sections 270(4) and 275 of the
          Companies Law, the approval of this proposal at the Shareholders Meeting with
          respect to Messrs. Nehama and Fridrich requires the approval of our Audit
          Committee, Board of Directors and the affirmative vote of a majority of our
          ordinary shares voted in person or by proxy at the Shareholders Meeting, which
          is also required to satisfy at least one of the following conditions: (i) the
          shares voting in favor of the matter include at least one-third of the shares
          voted by shareholders who do not have a personal interest in the matter or (ii)
          the total number of shares voted against the matter does not exceed 1% of the
          Company&#146;s outstanding voting rights.  </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 Section 276 of the Companies Law, all shareholders are asked to indicate on the
enclosed proxy card whether or not they have a personal interest in the approval of this
proposal. Under the Companies Law, a &#147;personal interest&#148; of a shareholder (i)
includes a personal interest of any member of the shareholder&#146;s immediate family (or
spouses thereof) or a personal interest of a company with respect to which the shareholder
(or such a family member thereof) serves as a director or the chief executive officer,
owns at least 5% of the shares or has the right to appoint a director or the chief
executive officer and (ii) excludes an interest arising solely from the ownership of
shares in our Company. Mr. Nehama, Nechama Investments and Kanir all have a &#147;personal
interest&#148; in the approval of this proposal with respect to Messrs. Nehama and
Fridrich. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with the procurement of directors&#146; liability insurance to Messrs. Shlomo
Nehama and Ran Fridrich, we intend to utilize an exemption that is available under the
Relief Regulations. Regulation 1B(5) of the Relief Regulations provides that in the event
the Audit Committee and Board of Directors determine that: (i) the insurance provided to
the controlling shareholder is upon terms identical to those provided to our other
officers and directors, (ii) is on market conditions and (iii) is not likely to materially
effect our profitability, assets or liabilities, shareholders approval will not be
required. In connection with the provision of liability insurance discussed herein, our
Audit Committee and Board of Directors approved and confirmed the conditions set forth in
the Relief Regulations. Nevertheless, pursuant to Regulation 1C(a) of the Relief
Regulations, one or more of our shareholders holding at least 1% of our issued share
capital or voting rights have the right to oppose, in writing, such determination of the
Audit Committee and Board of Directors. ANY OPPOSITION MUST BE RECEIVED BY US NO LATER
THAN 14 DAYS FOLLOWING THE PUBLICATION OF THIS PROXY STATEMENT. In the event of such
opposition, then the procurement of directors&#146; liability insurance for Messrs. Shlomo
Nehama and Ran Fridrich will require shareholders&#146; approval, by the special majority
detailed above. Accordingly, the approval of the procurement of directors&#146; liability
insurance for Messrs. Shlomo Nehama and Ran Fridrich will only be presented for
shareholder approval at the Shareholders Meeting if so required by one or more
shareholders as explained above. If shareholder approval is not required under the Relief
Regulations, then any votes and abstentions submitted on a proxy for Proposal 5 will only
be taken into account with respect to such portion of this proposal that is not subject to
the exemptions available under the Relief Regulations. </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Shareholders Meeting, the Board of Directors will propose that the following
resolution be adopted: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;RESOLVED,
to approve the Company&#146;s entry into indemnification agreements with, the provision of
exemptions to and the inclusion in our current and future directors and officers liability
insurance policy of, Messrs. Shlomo Nehama and Ran Fridrich, all in accordance with the
previously approved and existing arrangements with the current members of our Board of
Directors, as amended from time to time, effective as of the date of their initial
appointment to serve on the Company&#146;s Board of Directors.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the receipt of a properly signed and dated proxy and unless otherwise instructed in the
proxy, either of the persons named in the enclosed proxy will vote the shares represented
thereby <B>&#147;FOR&#148;</B> the above-mentioned proposal. </FONT></P>

<p align=center>
<font size=2>- 16 -</font></p>
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<page>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>ITEM 6</U> </FONT> </H1>

<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>APPROVAL OF MANAGEMENT SERVICES AGREEMENT AMONG THE <BR>
COMPANY, MEISAF BLUE &amp; WHITE HOLDINGS LTD. AND KANIR JOINT<BR>
INVESTMENTS (2005) LIMITED PARTNERSHIP</B> </FONT>
</P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following
the sale of all of our ordinary shares and a majority of the warrants to purchase our
ordinary shares held by the Fortissimo Entities and the resignation of the Fortissimo
representatives from our Board of Directors in March 2008, the Management Services
Agreement between Fortissimo Capital Fund GP, LP and us (the <B>&#147;Fortissimo
Management Agreement</B>&#148;) was terminated. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
is now proposed that we enter into a Management Services Agreement, substantially in the
form attached hereto as <B><U>Exhibit A</U></B><U></U> (the &#147;<B>Management Services
Agreement</B>&#148;), with Meisaf Blue &amp; White Holdings Ltd.
(&#147;<B>Meisaf</B>&#148;), an Israeli company wholly-owned by Mr. Shlomo Nehama, our
Chairman of the Board and a controlling shareholder and with Kanir, another controlling
shareholder who currently has two representatives on our Board of Directors, Messrs. Hemi
Raphael and Ran Fridrich. </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 consummation of the HP Transaction, our efforts are concentrated on identifying and
evaluating suitable business opportunities and strategic alternatives, including through
the acquisition of all or part of an existing business, pursuing business combinations or
otherwise. These efforts have been, and are expected to continue to be, conducted and
overseen by Messrs. Nehama, Fridrich and Raphael. In connection with such efforts and
services and the Board services provided to us by Messrs. Nehama, Raphael and Fridrich,
our Audit Committee and Board of Directors approved, and recommend that our shareholders
approve, the entering into the Management Services Agreement, effective as March 31, 2008,
the day following the termination date of the Fortissimo Management Agreement. </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
following is a brief summary of the key terms of the Management Services Agreement: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Meisaf
and Kanir, through their employees, officers and directors, will assist us in connection
with the process of identifying and evaluating opportunities to acquire operations,
otherwise provide us with management services and advise and provide assistance to our
management concerning our affairs and business. It is further agreed that the management
services will be provided primarily by Messrs. Nehama, Fridrich and Raphael. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, the Management Services Agreement notes that Kanir&#146;s and Meisaf&#146;s
representatives on our Board of Directors, Messrs. Nehama, Fridrich and Raphael, or other
affiliates of such entities, serve and will continue to serve on our Board of Directors.
In providing the Board services, the directors and the Chairman of the Board will be
subject to any and all fiduciary and other duties applicable to them under law and under
our Articles of Association and they are required to dedicate as much time as reasonably
necessary for the proper performance of such services. </FONT></P>

<p align=center>
<font size=2>- 17 -</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
consideration of the performance of the management services and the Board services, we
have agreed to pay to Meisaf and Kanir, in equal parts, an aggregate annual fee in the
amount of $250,000, to be paid on a quarterly basis. Meisaf and Kanir will also be
entitled to receive reimbursement for reasonable out-of-pocket business expenses borne by
them in connection with the provision of the services, as customary in the Company. In
connection with the Management Services Agreement, the Board representatives of Kanir and
Mr. Nehama waived any director fees and options to purchase our ordinary shares they may
be entitled to as a result of their service on our Board of Directors. </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
Management Services Agreement will remain in effect until the earlier of: (i) the second
anniversary of the effective date of the Agreement or (ii) the termination of service of
either of the Kanir and Nechama Investments affiliates on our Board of Directors. Any
revision or amendment of the Management Services Agreement, or extension of its term, will
require the approvals set forth under applicable law and our Articles of Association. </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.
          Shlomo Nehama, our Chairman of the Board and a director nominee, Kanir, one of
          our shareholders, and Messrs. Fridrich and Raphael, who are members of our
Board           of Directors and director nominees, are each deemed to be our &#147;controlling
          shareholders&#148; for purposes of Section 268 of the Companies Law due to
          holdings of Nechama Investments and Kanir as set forth above, their respective
          positions with such entities and the 2008 Shareholders Agreement. The
Management           Services Agreement may be deemed to be an &#147;extraordinary
transaction&#148;          in which such &#147;controlling shareholders&#148; have a
&#147;personal           interest&#148;, whether due to the fact that they are parties to
the Management           Services Agreement in the case of Kanir or due to the fact that
they control a           party to the Management Services Agreement in the case of Mr.
Nehama. Therefore,           pursuant to Sections 270(4) and 275 of the Companies Law,
the approval of this           proposal requires the approval of our Audit Committee,
Board of Directors and           the affirmative vote of a majority of our ordinary
shares voted in person or by           proxy at the Shareholders Meeting, which is also
required to satisfy at least           one of the following conditions: (i) the shares
voting in favor of the matter           include at least one-third of the shares voted by
shareholders who do not have a           personal interest in the matter or (ii) the
total number of shares voted against           the matter does not exceed 1% of our
outstanding voting rights.  </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 Section 276 of the Companies Law, all shareholders are asked to indicate on the
enclosed proxy card whether or not they have a personal interest in the approval of this
proposal. Under the Companies Law, a &#147;personal interest&#148; of a shareholder (i)
includes a personal interest of any member of the shareholder&#146;s immediate family (or
spouses thereof) or a personal interest of a company with respect to which the shareholder
(or such a family member thereof) serves as a director or the chief executive officer,
owns at least 5% of the shares or has the right to appoint a director or the chief
executive officer and (ii) excludes an interest arising solely from the ownership of
shares in our Company. Mr. Nehama, Nechama Investments and Kanir all have a &#147;personal
interest&#148; in the approval of this proposal. </FONT></P>

<p align=center>
<font size=2>- 18 -</font></p>
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<page>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Shareholders Meeting, the Board of Directors will propose that the following
resolution be adopted: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;RESOLVED,
to approve the Management Services Agreement between the Company, Meisaf and Kanir,
substantially in the form attached to the Proxy Statement as <B><U>Exhibit
A</U></B><U></U>.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the receipt of a properly signed and dated proxy and unless otherwise instructed in the
proxy, either of the persons named in the enclosed proxy will vote the shares represented
thereby <B>&#147;FOR&#148;</B> the above-mentioned proposal. </FONT></P>

<p align=center>
<font size=2>- 19 -</font></p>
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<page>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>ITEM 7</U> </FONT> </H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONSIDERATION OF THE
ANNUAL FINANCIAL STATEMENTS </FONT></H1>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
required by the Companies Law, our independent auditors&#146; report and audited
consolidated financial statements for the fiscal year ended December 31, 2007, will be
presented for discussion at the Shareholders Meeting. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
audited financial statements for the year ended December 31, 2007 are included in our 2007
Annual Report on Form 20-F, which was filed with the SEC on June 30, 2008. The 2007 Annual
Report is also available on our website at <U>http://www.ellomay.com</U>. You may also
read and copy this report at the SEC&#146;s public reference room at 100 F Street, N.W.,
Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on
the public reference room. Our reports to the SEC are also available to the public at the
SEC&#146;s website at <U>http://www.sec.gov</U>. </FONT> </P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This item will not
involve a vote of the shareholders. </FONT></H1>

<p align=center>
<font size=2>- 20 -</font></p>
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<page>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>ITEM 8</U> </FONT> </H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Shareholders&#146;
Proposal) </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>APPROVAL OF THE
AMENDMENT AND RESTATEMENT OF THE COMPANY&#146;S <BR>ARTICLES OF ASSOCIATION </FONT></H1>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
66(b) of the Companies Law entitles one or more of our shareholders, holding at least one
percent (1%) of our outstanding voting rights, to request that our Board of Directors
include a matter on the agenda of a future shareholders&#146; meeting, provided that such
proposal is appropriate to be discussed in such meeting. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
received a request pursuant to the aforementioned Section 66(b) from Nechama Investments
and Kanir to include the amendment and restatement of our Articles of Association on the
agenda of the Shareholders Meeting. Pursuant to the Companies Law, the amendment of our
Articles of Association requires the approval of our shareholders. Therefore, in
compliance with the Companies Law, at the Shareholders Meeting, our shareholders will be
presented with a proposal to adopt the Second Amended and Restated Articles of Association
attached hereto as <B><U>Exhibit B</U></B><U></U> and to adopt the resolution set forth
below. The attached Second Amended and Restated Articles of Association are marked to show
the changes proposed compared to our current Articles of Association </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
proposed amendments to our Articles of Association include, among others, the following: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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><FONT size="2" face="Wingdings 2">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Changing
the quorum required for shareholders meetings from two or more shareholders holding more
than 33<SUP>1</SUP><I>/</I><SUB>3</SUB>% of the voting rights of the Company to two or more shareholders holding more
than 25% of the voting rights of the Company in general meetings, and from one or more
shareholders holding more than 33<SUP>1</SUP><I>/</I><SUB>3</SUB>% of the voting rights of the Company to two or more
shareholders of the Company in adjourned general meetings; </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 size="2" face="Wingdings 2">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Including amendments and updates to the provisions concerning notices of general meetings
(including, but not limited to, reducing the minimal notice period from twenty one (21)
days to fourteen (14) days and providing that a notice published in one international wire
services shall be deemed to have been duly given on the date of such publication);</FONT></TD>
</TR>
</TABLE>
<BR>











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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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><FONT size="2" face="Wingdings 2">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Providing
that, for so long as the 2008 Shareholders Agreement is in effect, at the written request
of any two directors with respect to certain proposed actions or transactions of the
Company (including certain related party transactions, amendments to our Memorandum or
Articles of Association, any merger or consolidation of the Company, material change in
the scope of our business, the voluntary liquidation or dissolution of the Company,
approval of annual budget or business plan and material deviations therefrom and any
change in signatory rights on behalf of the Company), such action or transaction shall
require the approval of the general meeting by a resolution supported by members vested
with at least 50.1% of the outstanding shares of the Company, or by such higher approval
threshold as may be required by applicable law; </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>- 21 -</font></p>
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<page>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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><FONT size="2" face="Wingdings 2">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Reducing
the maximum number of members of our Board of Directors from twelve (12) to eight (8);</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 size="2" face="Wingdings 2">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Including
an exception to the determination that the Chairman of the Board shall have no casting
vote by providing that this will be the case unless Mr. Shlomo Nehama holds such position
and Nechama Investments, together with its Affiliates (as defined in the proposed
Articles), holds at least 25.05% of our outstanding shares, and further providing that in
the event the Chairman of the Board elects to exercise his casting vote then: (a) prior
to such exercise, Nechama Investments shall be required to trigger the &#147;Buy Me Buy
You&#148; mechanism in the 2008 Shareholders Agreement and the relevant Board resolution
will remain pending until the consummation of the sale of the shares in accordance with
such mechanism and (b) in the event that three directors so require, the relevant Board
resolution shall be conditioned upon the approval of the Company&#146;s general meeting.
The amendments also provide that upon the transfer of Restricted Shares (as defined in
the 2008 Shareholders Agreement) by Kanir to a third party in accordance with the terms
of the 2008 Shareholders Agreement, the casting vote of the Chairman of the Board shall
expire; and </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 size="2" face="Wingdings 2">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Attaching
the 2008 Shareholders Agreement as Exhibit A to the Articles of Association (as
previously noted, the 2008 Shareholders Agreement was filed with the SEC on an amendment
to Schedule 13D on March 31, 2008). </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
foregoing description of some of the proposed amendments is only a summary, and
shareholders are urged to review the full text of the proposed amendments, which is
attached hereto as <B><U>Exhibit B</U></B><U></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;We
are obligated by the Companies Law to include this proposal on the agenda of the
Shareholders Meeting. Our Board of Directors does not express an opinion as to the vote in
connection with this proposal. </FONT></P>

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









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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
approval of amendments to our Articles of Association generally requires the affirmative
vote of a majority of the ordinary shares of the Company voted in person or by proxy at
the Shareholders Meeting. However, as more fully described above, one of the proposed
amendments entails, upon the occurrence of certain circumstances, a requirement that the
holders of 50.1% of our outstanding shares approve certain corporate actions and
transactions, including a revision of our Articles of Association. Therefore, pursuant to
Section 20(b) of the Companies Law, such portion of the proposed amendments is required to
be approved by the affirmative votes of the holders of 50.1% of the outstanding voting
power of the Company as of the Record Date.</FONT></P>















<p align=center>
<font size=2>- 22 -</font></p>
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<page>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Shareholders Meeting, Nechama Investments and Kanir propose that the following
resolution be adopted: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;RESOLVED,
to approve and adopt the Second Amended and Restated Articles of Association of the
Company as set forth on <B><U>Exhibit B</U></B><U></U> of the Proxy Statement.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the receipt of a properly signed and dated proxy and unless otherwise instructed in the
proxy, the persons named in the enclosed proxy will <B>&#147;ABSTAIN&#148;</B> from voting
the shares represented thereby in connection with the above-mentioned proposal. </FONT></P>

<p align=center>
<font size=2>- 23 -</font></p>
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<page>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PROPOSALS OF
SHAREHOLDERS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
of our shareholders who intends to present a proposal at a shareholders&#146; meeting must
satisfy the requirements of the Companies Law. Under the Companies Law, only shareholders
who severally or jointly hold at least one percent (1%) of our outstanding voting rights
are entitled to request that our Board of Directors include a proposal, in a future
shareholders&#146; meeting, provided that such proposal is appropriate to be discussed in
such meeting. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>OTHER BUSINESS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors is not aware of any other matters that may be presented at the
Shareholders Meeting other than those mentioned in the attached Company&#146;s Notice of
Annual Meeting of Shareholders. If any other matters do properly come before the
Shareholders Meeting, it is intended that Ran Fridrich and Yosef Zylberberg, the persons
named as proxies, or either one of them, will vote the shares in accordance with his
discretionary authority and best judgment. </FONT></P>

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<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By Order of the Board of Directors,<BR><BR>
<BR><I>/s/ Shlomo Nehama</I><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Shlomo Nehama<BR>Chairman of the Board of Directors </FONT></TD>
</TR>
</TABLE>
<BR>






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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Herzliya, Israel</FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>November 2008</FONT></P>

<p align=center>
<font size=2>- 24 -</font></p>
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<PAGE>


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

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>MANAGEMENT SERVICES
AGREEMENT</U> </FONT> </H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This Management Services Agreement
(this &#147;<B>Agreement</B>&#148;) is entered into on___________, 2008, by and among
Ellomay Capital Ltd., a company registered under the laws of the State of Israel (the
&#147;<B>Company</B>&#148;), Kanir Joint Investments (2005) Limited Partnership, a limited
partnership registered under the laws of the State of Israel (&#147;<B>Kanir</B>&#148;)
and Meisaf Blue &amp; White Holdings Ltd., a company registered under the laws of the
State of Israel (&#147;<B>Meisaf</B>&#148; and, together with Kanir, the &#147;<B>Service
Providers</B>&#148;). </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>WHEREAS,</B> </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
following the consummation of the sale of the Company&#146;s business to Hewlett-Packard
Company on February 29, 2008 (the &#147;<B>HP Transaction</B>&#148;), the Company has
commenced the process of identifying and evaluating suitable business opportunities and
strategic alternatives (the &#147;<B>New Operations  Process</B>&#148;);  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Exhibit 15%" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>WHEREAS,</B> </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
on March 2008, following the sale by affiliates of Fortissimo Capital Fund GP, LP (&#147;<B>Fortissimo</B>&#148;)
of ordinary shares and warrants exercisable into ordinary shares of the Company to Kanir
and S. Nechama Investments (2008) Ltd. (&#147;<B>S. Nechama</B>&#148;), a company under
common control with Meisaf, and the changes to the composition of the Company&#146;s
Board of Directors (the &#147;<B>Board</B>&#148;), the Management Services Agreement
between the Company and Fortissimo, dated as of September 26, 2005 was terminated;  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Exhibit 15%" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>WHEREAS,</B> </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
following the termination of the Fortissimo Management Services Agreement, Kanir and
Meisaf have actively participated in the management of the Company, including in the
aforementioned New Operations Process, and intend to continue to do so; and  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Exhibit 15%" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>WHEREAS,</B></FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
the Company desires to retain management services and Board services from the Service
Providers pursuant to the terms and conditions set forth in this Agreement, and the
Service Providers agree to provide such services to the Company on such terms and
conditions.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>NOW, THEREFORE,</B> in
consideration of the covenants and conditions hereinafter set forth, the parties hereby
agree as follows: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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 WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>SCOPE
OF SERVICES</U></B></FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.1.</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Management
Services</U> </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.1.1.</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Service Providers, through their employees, officers and directors, will           assist
the Company in all aspects of the New Operations Process, including, but           not
limited to, any activities to be conducted in connection with the
          identification and evaluation of the business opportunities, the negotiations
          and the integration and management of any new operations and will conduct
          regular meetings and discussions with members of the Company&#146;s management,
          to assist and advise them on such matters and on any other matters concerning
          the affairs and business of the Company and render such other management
          services and advise as may be agreed to from time to time by the Company and
the           Service Providers (together, the &#147;<B>Management Services</B>&#148;).  </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.1.2.</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
rendering the Management Services hereunder, the Service Providers shall
          cooperate with the Company and utilize professional skill and diligence to
          provide the expertise required in connection with such services. The Service
          Providers shall dedicate as much time as will be reasonably necessary for the
          proper performance of the Management Services.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.1.3.</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>It
is hereby agreed by the parties hereto that the Management Services will be
          provided primarily by Messrs. Menahem Raphael and Ran Fridrich, who are sole
          shareholders and directors of Kanir Investments Ltd., the general partner in
          Kanir and who are members of the Board and by Mr. Shlomo Nehama, the sole
          shareholder and director of S. Nechama and Meisaf and who is a member and
serves           as Chairman of the Board.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><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 WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Board
Services</U> </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.2.1.</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Until
their respective successors are duly elected and qualify, Messrs. Shlomo
          Nehama, Ran Fridrich and Menahem Raphael currently serve, and in the future
          other affiliate of the Service Providers may serve, as members of the Board of
          Directors of the Company (the &#147;<B>Directors</B>&#148;) and Mr. Shlomo
          Nehama (&#147;<B>Nehama</B>&#148;) serves as the Chairman of the Board of
          Directors of the Company (the &#147;<B>Chairman</B>&#148;). The Directors and
          the Chairman will be active members of the Board and will serve in committees
of           the Board of which they are appointed (the services rendered by the
Directors           and the Chairman pursuant to this Agreement will be referred
hereinafter as the           &#147;<B>Board Services</B>&#148;).  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.2.2.</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
his capacity as Chairman, Nehama shall (a) preside at meetings of the Board           and
as chairman of the general meetings of the shareholders of the Company and           (b)
carry out all other duties vested with the Chairman under law and/or the           Company&#146;s
Amended and Restated Articles of Association, as amended and           restated from time
to time (the &#147;<B>Articles</B>&#148;).  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.2.3.</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For
the avoidance of doubt, it is clarified that in serving as members of the
          Board, the Directors, including the Chairman, shall not be employees of the
          Company, nor shall the payment of the Management Fee by the Company create
          employee-employer relations between the parties hereto or entitle the Directors
          to any social benefits.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.2.4.</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
providing the Board Services, the Directors shall be subject to any and all
          fiduciary and other duties applicable under law and under our Articles upon
          members of the Board of Directors, and with respect to the Chairman, also
duties           applicable upon the person holding position of chairman of the board of
          directors. The Directors, including the Chairman, shall dedicate as much time
as           will be reasonably necessary for the proper performance of the Board
Services.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.3.</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
parties hereto acknowledge that the Service Providers are active in other
          businesses, whether alone or with third parties and that they may continue to
so           act during the term of this Agreement; provided, however, that no conflict
of           interest arises between such other activities and the provision of the
          Management Services and Board Services pursuant to this Agreement. The Service
          Providers undertake to immediately notify the Company in writing in the event
an           actual or potential conflict of interest arises.  </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>2</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>COMPENSATION</U></B></FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><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 WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
consideration of the performance of the Management Services and the Board
          Services hereunder, the Company shall pay to the Service Providers an aggregate
          annual management services fee in the amount of two hundred fifty thousand
          United States dollars (US$250,000) (the &#147;<B>Management Fee</B>&#148;), to
          be paid in equal quarterly installments of thirty one thousand two hundred
fifty           United States dollars (US$31,250) to each of Kanir and Meisaf. Each
quarterly           installment shall be paid not later than the seventh (7<SUP>th</SUP>)
day of           each calendar quarter for services rendered during the preceding
calendar           quarter.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.2.</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Company will reimburse the Service Providers for reasonable out-of-pocket
          business expenses borne by the Service Providers or any of their employees,
          directors or officers in connection with the provision of the Management
          Services and the Board Services as customary in the Company, against the
          submittal of the relevant invoices, receipts and other required documentation
to           the Company.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.3.</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All
payments under this Agreement shall be made against the issuance of valid
          invoices furnished by the Service Providers to the Company. Value Added Tax
          (&#147;<B>VAT</B>&#148;) pursuant to applicable law shall be added to all
          payments hereunder.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.4.</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Except
for VAT, the Management Fee shall be inclusive of all taxes that may be
          incurred by the Company and/or the Service Providers in connection with the
          payment thereof, and any such taxes shall be borne by the Service Providers
and,           in the event required, withheld by the Company from the Management Fee.
          Furthermore, the Management Fee is the full and final compensation for the
          provision of the Management Services and the Board Services and shall be in
lieu           of any and all payments that are due to the Directors, including the
Chairman,           in their capacity as members of the Board or any of its committees to
which they           are appointed, including the right to receive the options to
purchase ordinary           shares of the Company in accordance with the Company&#146;s
1998 Share Option           Plan for Non-Employee Directors.  </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.</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>CONFIDENTIAL
INFORMATION</U></B></FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><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 WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Services Providers agree that any and all Confidential Information (as           defined
below), which may be provided by the Company or by third parties in           connection
with the Company to the Services Providers or any of their directors,           officers,
employees or affiliates under this Agreement is, and shall be, the           sole
property of the Company or of such third party, and that the Service           Providers
will keep and will ensure that their aforementioned representatives           will keep
in confidence all such Confidential Information, and not use, divulge           or
disclose any Confidential Information to any third party, except for the
          purposes of this Agreement.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><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 WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For
purposes hereof, &#147;<B>Confidential Information</B>&#148; means           confidential
and proprietary information concerning the business and financial           activities of
the Company, including, but not limited to, prospective           investments,
negotiations, financial position, operations, budgets, patents,           patent
applications, trademarks, copyrights and other intellectual property, and
          information relating to the same, technologies and products, know how,
          inventions, research and development activities, trade secrets, and also
          confidential commercial information such as information relating to customers,
          suppliers, marketing plans, etc. and shall also include information of the same
          nature with respect to third parties, which the Company may obtain or receive
          from third parties or which may be provided to the Service Providers or their
          representatives in connection with the Company. &#147;Confidential
          Information&#148; shall not include information generally known to the public,
          information which was known to the Service Providers prior to the date hereof,
          information disclosed to the Service Providers by a third party who is not
bound           by any obligation of confidentiality to the Company or to the third party
the           subject of such Confidential Information or information required to be
disclosed           by a competent court or administrative order or other applicable law;
provided,           however, that in the event information is so required to be
disclosed, the           Service Providers will immediately inform the Company of the
requirement in           order to enable the Company or the respective third party to
seek an appropriate           protective order or other remedy, to consult with the
Service Provider with           respect to taking steps to resist or narrow the scope of
such request or legal           process, or to waive compliance, in whole or in part,
with the terms of this           Section.  </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>3</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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.</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>TERM
AND TERMINATION</U></B><U></U>. This Agreement shall be deemed           effective as of
March 31, 2008 (the &#147;<B>Effective Date</B>&#148;) and shall           continue to
remain in effect until the earlier of: (i) the second anniversary of           the
Effective Date or (ii) the termination of service of either of the Kanir and           S.
Nechama affiliates on the Board of the Company. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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.</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>INDEPENDENT
CONTRACTOR</U></B><U></U>. The Service Providers and their           representatives,
including, but not limited to, their agents, employees and           affiliates are
independent contractors of the Company and are not agents or           employees of, and
have no authority to bind the Company by contract or           otherwise. Each of the
Service Providers will be solely responsible to any           payments it is required to
pay its representatives pursuant to applicable law.           The Service Providers will
perform the Management Services under the general           direction of the Company. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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>6.</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>MISCELLANEOUS</U></B></FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><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 WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Entire
Agreement</U>. This Agreement contains the entire agreement of the           parties with
relation to the subject matter hereof, and cancels and supersedes           all prior and
contemporaneous negotiations, correspondence, understandings and           agreements
(oral or written) of the parties relating to such subject matter.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><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 WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Amendment</U>.
This Agreement may not be modified or amended except by mutual           written
agreement of the parties.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.3.</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>No
Waiver</U>. No failure, delay of forbearance of either party in exercising           any
power or right hereunder shall in any way restrict or diminish such           party&#146;s
rights and powers under this Agreement, or operate as a waiver of           any breach or
nonperformance by either party of any terms of conditions hereof.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.4.</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Assignment</U>.
Except as provided herein, this Agreement shall not be           assigned by a party
hereof to a third party without the other party&#146;s prior           written consent
and any attempt to effect an assignment of this Agreement or any           portion
thereof without obtaining such consent shall be null and void.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.5.</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Severability</U>.
In case any one or more of the provisions contained in this           Agreement shall for
any reason be held to be invalid, illegal or unenforceable           in any respect, such
invalidity, illegality or unenforceability shall not affect           any other provision
hereof and this Agreement shall be construed as if such           invalid, illegal or
unenforceable provision had never been contained herein  </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>4</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.6.</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Notices</U>.
Any notice under this Agreement shall be in writing and shall be           deemed to have
been duly given for all purposes: (a) seven (7) days after it is           mailed by
registered mail; (b) upon the transmittal thereof by telecopier; or           (c) upon
the manual delivery thereof, to the following addresses  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%>&nbsp;</TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>
If
to the Company:</U> </FONT> </TD>
</TR>
</TABLE>
<BR>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<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>
                 Ellomay Capital Ltd.
<BR>                 Ackerstein Towers
    <BR>             11 Hamenofim St.
        <BR>         P.O.Box 2148
            <BR>     Herzliya 46120, Israel
                <BR> Fax: 09-950-2942
<BR>                 Attn: Chief Executive Officer </FONT></TD>
</TR>
</TABLE>
<BR>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%>&nbsp;</TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>
If
to Kanir:</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%>&nbsp;</TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>                 c/o Erdinast, Ben Nathan &amp; Co., Advocates
<BR>                 Museum Tower - 13th floor
    <BR>             4 Berkowitz St.
        <BR>         Tel Aviv 64238, Israel
            <BR>     Fax: 03-777-0101

 </FONT></TD>
</TR>
</TABLE>
<BR>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%>&nbsp;</TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>
If
to Meisaf:</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%>&nbsp;</TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>                 Meisaf Blue &amp; White Holdings Ltd.
<BR>                 90 HaChashmonaim St.
    <BR>             Tel Aviv 67133, Israel
        <BR>         Fax: 03-566-4443
            <BR>     Attn: Mr. Shlomo Nehama

 </FONT></TD>
</TR>
</TABLE>
<BR>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%>&nbsp;</TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
;
or to such other address as the party specifies in writing.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.7.</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Specific
Performance</U>. The parties hereto agree that irreparable damage           would occur
in the event that any of the provisions of this Agreement were not           performed in
accordance with their specific terms or were otherwise breached. It           is
accordingly agreed that the parties hereto shall be entitled to an injunction
          or injunctions to prevent breaches of this Agreement and to enforce
specifically           the terms and provisions of this Agreement, this being in addition
to any other           remedy to which they are entitled at law or in equity.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.8.</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Counterparts</U>.
This Agreement may be executed in multiple counterparts,           including, without
limitation, by facsimile signature, which taken together           shall constitute a
single document.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.9.</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Governing
Law</U>. This Agreement shall be governed and enforced in           accordance with the
laws of the State of Israel and any dispute arising out of           or in connection
with this Agreement is hereby submitted to the sole and           exclusive jurisdiction
of the competent courts in Tel Aviv, Israel.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[SIGNATURE PAGE TO
FOLLOW] </FONT></H1>

<p align=center>
<font size=2>5</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[SIGNATURE PAGE] </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>IN WITNESS WHEREOF</B>, the
parties have signed this Management Services Agreement as of the date first set forth
above. </FONT></P>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH WIDTH=5%><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH WIDTH=95%><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan=2><FONT FACE="Times New Roman" SIZE="2"><B>ELLOMAY CAPITAL LTD.</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>By:</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>_________________</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Name:</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>[____________]</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Title:</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Director</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>By:</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>_________________</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Name:</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Title:</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan=2><FONT FACE="Times New Roman" SIZE="2"><B>KANIR JOINT INVESTMENTS (2005) LIMITED PARTNERSHIP</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan=2><FONT FACE="Times New Roman" SIZE=2>By: Kanir Investments Ltd., its general partner</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>By:</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>_________________</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Name:</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Menahem Raphael</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Title:</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Director</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>By:</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>_________________</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Name:</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Ran Fridrich</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Title:</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Director</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan=2><FONT FACE="Times New Roman" SIZE="2"><B>MEISAF BLUE &amp; WHITE HOLDINGS LTD.</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>By:</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>_________________</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Name:</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Shlomo Nehama</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Title:</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Director</FONT></TD></TR>
</TABLE>
<BR>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I agree to those terms of this
Agreement applicable to me, as Chairman of the Board: </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>________________________
<BR>Shlomo Nehama
</FONT></P>

<p align=center>
<font size=2>6</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Exhibit B</U></B> </FONT> </P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">THE COMPANIES LAW<BR>A
COMPANY LIMITED BY SHARES <BR><U>SECOND </U>AMENDED AND
RESTATED ARTICLES OF<BR>ELLOMAY CAPITAL LTD. </FONT> </H1>



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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I &nbsp;&nbsp;PRELIMINARY </FONT></H1>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.  </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 BORDER=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>1.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In these Articles the following terms shall bear the meaning ascribed to them
          below: </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U><B>&#147;Affiliate&#148;</B> is defined in Article 25.5.1 herein.</U> </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>&#147;Alternate
Director</B>&#148; defined in Article 37.1 herein.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
&#147;<B>Articles</B>&#148; shall mean the articles of association contained in the
Articles, as originally registered and as they may from time to time be amended.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
&#147;<B>Board</B>&#148; shall mean the Company&#146;s Board of Directors.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
&#147;<B>Company</B> &#148;shall mean the above named company.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>&#147;Control&#148;</B> is
defined in Article 25.5.1 herein.</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&#147;<B>Determining
Majority</B>&#148; as defined in Article 6 herein.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&#147;<B>External
Director</B>&#148; as defined in the Law.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&#147;<B>Extraordinary
Meetings</B>&#148; as defined in Article 21.1 herein.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><STRIKE>
&#147;<B>Iska Chariga</B>&#148; as defined in the Law.</STRIKE>  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
&#147;<B>Law</B>&#148; shall mean the Companies Law, 5759 &#150; 1999, as the same may be
amended from time to time, and all the rules and regulations promulgated thereunder.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
&#147;<B>Memorandum</B>&#148; shall mean the Memorandum of Association of the Company, as
originally registered and as it may from time to time be amended.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&#147;<B>Obligation</B>&#148; as
defined in Article 13.1 herein.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>&#147;Officer&#148;</B> is
defined in Article 25.5.1 herein.</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
&#147;<B>Ordinance</B>&#148; shall mean the Companies Ordinance [New Version], 5743-1983,
as the same may be amended from time to time.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
&#147;<B>Register of Members</B>&#148; shall mean the Company&#146;s Register of Members.  </FONT></TD>
</TR>
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<BR>

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<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&#147;<B>Registered
Holder</B>&#148; as defined in Article 10 herein.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&#147;<B>Securities</B>&#148; as
defined in Article 18 herein.  </FONT></TD>
</TR>
</TABLE>
<BR>




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<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>&#147;<B>Shareholders
Agreement</B>&#148; shall mean the Shareholders Agreement, dated as of March 24, 2008,
</U><U>between Kanir Joint Investments (2005) Limited Partnership (&#147;<B>Kanir</B>&#148;)
and S. Nechama Investments </U><U>(2008) Ltd. (&#147;<B>Nechama Investments</B>&#148;), a
copy of which is attached hereto as Exhibit A.</U> </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Terms
and expressions used in the Articles and not defined herein, shall bear the same meaning
as in the Law.  </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>1.2. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sections
2, 3, 4, 5, 6, 7, 8 and 10 of the Interpretation Law, 5741-1981, shall
               apply, mutatis mutandis, to the interpretation of the Articles. </FONT></TD>
</TR>
</TABLE>
<BR>


<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>




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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>1.3. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
captions in the Articles are for convenience only and shall not be deemed a
               part hereof or affect the interpretation of any provision hereof. </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Name</U></B></FONT></TD>
</TR>
</TABLE>
<BR>





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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The  Name of the Company shall be Ellomay Capital Ltd., and in Hebrew:  </FONT></TD>
</TR>
</TABLE>

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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><IMG SRC="capital.jpg"></TD>
</TR>
</TABLE>
<BR>




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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Purpose
and Objective</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>3.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
objective of the Company shall be to undertake any lawful activity,
               including any objective set forth in the Memorandum (for as long as it is
in                effect). </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>3.2. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
purpose of the Company is to operate in accordance with commercial
               considerations with the intention of generating profits. Such
considerations may                take into account, amongst others, public interest and
the interests of the                Company&#146;s creditors and employees. In addition,
the Company may contribute                reasonable amounts for any suitable purpose
even if such contributions do not                fall within the business considerations
of the Company. The Board may determine                the amounts of the contributions,
the purpose for which the contribution is to                be made, and the recipients
of any such contribution. </FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>II &nbsp;&nbsp;SHARE CAPITAL </FONT></H1>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Share
Capital</B></U> </FONT> </TD>
</TR>
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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
Company&#146;s authorized share capital will be NIS 170,000,000 divided into 170,000,000
ordinary shares of the Company, nominal value NIS 1.00 each.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Limited
Liability</B></U> </FONT> </TD>
</TR>
</TABLE>
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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
liability of the shareholders of the Company for the indebtedness of the Company shall be
limited to payment of the nominal value of such shares. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Alteration
of Share Capital</B></U> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
Company may, from time to time, by a resolution approved at a General Meeting by such
majority as is required to amend these Articles (as set forth in Article 25 below), or<U>,
if higher,</U> such majority as shall be required to amend the Memorandum (for as long as
it is still in force) (collectively, a &#147;<B>Determining </B> <B>Majority</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>6.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Increase
its share capital in an amount it considers expedient by the creation                of
new shares. The power to increase the share capital may be exercised by the
               Company whether or not all of the shares then authorized have been issued
and                whether or not all of the shares theretofore issued have been called
up for                payment. Such resolution shall set forth the amount of the
increase, the number                of the new shares created thereby, their nominal
value and class, and may also                provide for the rights, preferences of
deferred rights that shall be attached to                the newly created shares and the
restrictions to which such shares shall be                subject; </FONT></TD>
</TR>
</TABLE>
<BR>


<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


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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>6.2. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Consolidate all or any of its issued or unissued share capital and divide same
               into shares of nominal value larger than the one of its existing shares; </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>6.3. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Subdivide all or any of its issued or unissued share capital, into shares of
               nominal value smaller than the one of its existing shares; provided, however,
               that the proportion between the amount paid and the amount unpaid on each share
               which is not fully paid-up shall be retained in the subdivision; </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>6.4. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Cancel any shares which, as at the date of the adoption of the resolution, have
               not been issued or agreed to be issued, and thereby reduce the amount of its
               share capital by the aggregate nominal value of the shares so canceled; </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>III &nbsp;&nbsp;SHARES </FONT></H1>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Rights
Attached to Shares</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 WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Subject to any contrary provisions of the Memorandum (for as long as it is in
               effect) or the Articles, same rights, obligations and restrictions shall be
               attached to all the shares of the Company regardless of their denomination or
               class. </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>7.2. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               If at any time the share capital is divided into different classes of shares,
               the rights attached to any class may be modified or abrogated by a resolution
               adopted by a Determining Majority at a General Meeting and by the adoption of a
               resolution, supported by a Determining Majority, approving same modification or
               abrogation at a General Meeting of the holders of the shares of such class. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2">The
provisions of the Articles relating to General Meeting of the Company shall apply,
mutatis mutandis, to any separate General Meeting of the holders of the shares of a
specific class, provided, however, that the requisite quorum at any such separate General
Meeting shall be one or more members present in person or by proxy and holding not less
than thirty three and one third percent (33<SUP>1</SUP>/<SUB>3</SUB>%) of the issued shares of such class. </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>7.3. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
creation of additional shares of a specific class, or the issuance of
               additional shares of a specific class, shall not be deemed, for purposes
of                article 7.2, a modification or abrogation of rights attached to shares
of such                class or of any other class. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Issuance
of Shares</B></U> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Issuance
of shares of the Company shall be under the control of the Board, who shall have the <STRIKE>exclusive </STRIKE>authority to issue the Company&#146;s shares or grant options to acquire shares, to
such persons and on such terms and conditions as the Board may think fit<U>, or to
delegate such authority in accordance with the Law</U>.  </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Share
Certificates</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>9.1. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Each member shall be entitled, not later than 60 days from the date of issuance
               or the date of transfer, to receive from the Company one share certificate in
               respect of all the shares of any class registered in his name on the Register of
               Members or, if approved by the <STRIKE>Board<U></U></STRIKE><U>Company</U>, several share
               certificates, each for one or more of such shares. </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>9.2. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Each share certificate issued by the Company shall be numerated, denote the
               class<STRIKE> and serial numbers</STRIKE> of the shares represented thereby and the name
               of the owner, thereof as registered on the Register of Members, and may also
               specify the amount paid-up thereon<STRIKE>, <U></U></STRIKE><U>. </U>A share certificate
               shall be signed <STRIKE>by<U></U></STRIKE><U>on behalf</U> the Company<U> by the person or
               persons </U> <U>authorized by the Board</U>. </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>9.3. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               A share certificate denoting two or more persons as joint owners of the shares
               represented thereby shall be delivered to any one of the persons named on the
               Register of Members in respect of such joint ownership. </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>9.4. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               A share certificate defaced or defective, may be replaced upon being delivered
               to the Company and being canceled. A share certificate lost or destroyed may be
               replaced upon furnishing of evidence to the satisfaction of the Board proving
               such loss or destruction and subject to the submission to the Company of an
               indemnity letter and/or securities as the Board may think fit. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
A
member requesting the replacement of a share certificate shall bear all expenses incurred
by the Company in connection with the provisions of this Article.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Owners
of Shares</B></U> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
Company shall be entitled to treat the person registered in the Register of Members as
the holder of any share, as the absolute owner thereof (a &#147;<B>Registered Holder</B>&#148;)
and shall also treat any other person deemed as a holder of shares pursuant to the Law,
as an owner of shares.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Calls
on Shares</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 WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Board may, from time to time, make calls upon members to perform payment of
               any amount of the consideration of their shares not yet paid, provided
same                amount is not, by the terms of issuance of same shares, payable at a
definite                date. Each member shall pay to the Company the amount of every
call so made upon                him at the time(s) and place(s) designated in such call.
Unless otherwise                stipulated in the resolution of the Board, each payment
with respect to a call                shall be deemed to constitute a pro-rata payment on
account of all of the shares                in respect of which such call was made. </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>11.2. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               A call may contain a demand for payment in installments. </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>11.3. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               A call shall be made in writing and shall be delivered to the member(s) in
               question not less than fourteen (14) days prior to the date of payment
               stipulated therein. Prior to the due date stipulated in the call the Board may,
               by delivering a written notice to the member(s), revoke such call, in whole or
               in part, postpone the designated date(s) of payment or change the designated
               place of payment. </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


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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>11.4. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               If, according to the terms of issuance of any share, any amount is due at a
               definite date, such amount shall be paid on same date, and the holder of the
               same share shall be deemed, for all intents and purposes, to have duly received
               a call in respect of such amount. </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>11.5. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The joint holders of a share shall be bound jointly and severally to pay all
               calls in respect thereof. A call duly made upon one of the joint holders shall
               be deemed to have been duly made upon all of the joint holders. </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>11.6. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Any amount not paid when due shall bear an interest from its due date until its
               actual payment at a rate equal to the then prevailing rate of interest for
               unauthorized overdrafts as charged by Bank Hapoalim Ltd, unless otherwise
               prescribed by the Board. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
provisions of this Article 11.6 shall in no way deprive the Company of, or derogate from
any other rights and remedies the Company may have against such member pursuant to the
Articles or any pertinent law.  </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>11.7. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Board may agree to accept prepayment by any member of any amount due with
               <STRIKE>in </STRIKE>respect to his shares, and may direct the payment of interest for such
               prepayment at a rate as may be agreed upon between the Board and the member so
               prepaying. </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>11.8. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Upon the issuance of shares of the Company, <STRIKE>The<U></U></STRIKE><U>the</U> Board
               may stipulate similar or different terms with respect to the payment of the
               consideration thereof by their respective holders. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Forfeiture
and Surrender</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>12.1. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               If any member fails to pay when due any amount payable pursuant to a call, or
               interest thereon as provided for herein, the Company may, by a resolution of the
               Board, at any time thereafter, so long as said amount or interest remains
               unpaid, forfeit all or any of the shares in respect of which said call had been
               made. All expenses incurred by the Company with respect to the collection of any
               such amount of interest, including, inter-alia, attorney&#146;s fees and costs
               of legal proceedings, shall be added to, and shall constitute a part of the
               amount payable to the Company in respect of such call for all purposes
               (including the accrual of interest thereon). </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 WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Upon the adoption of a resolution of forfeiture, the Board shall cause the
               delivery of a notice thereof to the member in question. Same notice shall
               specify that, in the event of failure to pay the entire amount due within the
               period stipulated in the notice (which period shall be not less
               <STRIKE>the<U></U></STRIKE><U>than</U> thirty (30) days), same failure shall cause, ipso
               facto, the forfeiture of the shares. Prior to the expiration of such period, the
               Board may extend the period specified in the notice of forfeiture or nullify the
               resolution of forfeiture, but such nullification shall not estop nor derogate
               from the power of the Board to adopt a further resolution of forfeiture in
               respect of the non-payment of said amount. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


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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>12.3. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Whenever shares are forfeited as herein provided, all dividends theretofore
               declared in respect thereof and not actually paid shall be deemed to have been
               forfeited together with the shares. </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>12.4. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Company, by a resolution of the Board, may accept the voluntary surrender by
               any member of all or any part of his 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>12.5. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Any share forfeited or surrendered as provided herein shall thereupon constitute
               the property of the Company, and may be resold. Such shares that have not yet
               been resold shall be considered dormant shares. </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>12.6. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Any member whose shares have been forfeited or surrendered shall cease to be a
               member in respect of the forfeited or surrendered shares, but shall,
               notwithstanding, be obligated to pay to the Company all amounts at the time of
               forfeiture or surrender due to the Company with respect thereof, including
               interest and expenses as aforesaid until actual repayment, whether the maturity
               date of same amounts is on or prior to the date of forfeiture or surrender or at
               any time thereafter, and the Board, in its discretion, may enforce payment of
               such amounts or any part thereof, unless such shares have been resold in which
               event the provisions of the Law shall apply. In the event of such forfeiture or
               surrender, the Company, by a resolution of the Board, may accelerate the
               maturity date(s) of any or all amounts then owed to the Company by same member
               and not yet due, however, arising whereupon all of such amounts shall forthwith
               become due and payable. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
Board may, at any time before any share so forfeited or surrendered shall have been
reissued or otherwise disposed of to a third party, nullify the forfeiture or the
acceptance of the surrender on such conditions as it thinks fit, but such nullification
shall not estop nor derogate from the power of the Board to re-exercise its powers of
forfeiture pursuant to this Article 12. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Lien</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>13.1. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Company shall have, at all times, a first and paramount lien upon all the
               shares registered in the name of each member on the Register of Members, upon
               all the dividends declared in respect of such shares and upon the proceeds of
               the sale thereof, as security for his obligations. For the purposes of this
               Article 13 and of Article 14, the term &#147;Obligation&#148; shall mean any and
               all present and future indebtedness owed to the Company by a member with respect
               to his shares, however arising, whether such indebtedness is absolute or
               contingent, joint or several, matured or unmatured, liquidated or
               non-liquidated. </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>13.2. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Shall a member fail to fulfill any or all of his Obligations, the Company may
               enforce the lien, after same member was provided with a period of fourteen (14)
               days to fulfill the Obligations so breached. </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>13.3. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               A member shall be obliged to reimburse the Company for all expenses thereby
               incurred with respect to the enforcement of a lien upon same member&#146;s
               shares, and such obligation shall be secured by the shares which are subject to
               same lien. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Sale
of Shares after Forfeiture or Surrender or in Enforcement of Lien</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>14.1. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Upon any sale of shares after forfeiture or surrender or in the course of
               enforcement of a lien, the Company may appoint any person to execute an adequate
               instrument of transfer or any other instrument required to effect the sale, and
               shall be entitled to register the purchaser on the Register of Members as the
               holder of the shares so purchased. The purchaser shall not be obliged to check
               the regularity of the proceedings of forfeiture, surrender or enforcement of a
               lien or the use that was made consideration thereby paid with respect to the
               shares. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
As
of the entry of the purchaser&#146;s name in the Register of Members in respect of such
shares, the validity of the sale shall not be rebutted, and the sole remedy of any person
aggrieved by the sale shall be in damages, and against the Company solely. </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>14.2. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The net proceeds of any such sale, after payment of the selling expenses, shall
               serve for repayment of the Obligations of the respective member, and the balance
               if any shall be paid to the member, his inheritors, the executors of his will,
               the administrators of his estate, and to persons on his behalf. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Redeemable
Securities</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Subject to the Law, the Company may issue redeemable securities and redeem the same.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Effectiveness
of Transfer of Shares</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
A
transfer of title to shares of the Company, whether voluntarily or by operation of law,
shall not confer upon the transferee any rights towards the Company as a Registered Holder
unless and until such time as the transfer has been registered in the Register of Members. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Procedure
on Voluntary Transfer of Shares</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
A
person desiring to be registered as a Registered Holder, shall deliver to the Company an
instrument of transfer of shares according to which he is the transferee accompanied by a
notice to the effect, in a form to be prescribed by the Board, duly executed by such
person and the transferor, and subject to the prior fulfillment of the provisions of
Article 18 below, the Board shall instruct the registration of same in the Register of
Members. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Transfer
of 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>18.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
transfer of shares of the Company and any other securities issued by the
               Company and owned by a Registered Holder (in this Article 18, hereinafter,
               &#147;<B>Securities</B>&#148;) shall be made in writing in a conventional
manner                or as established by the Board; it may be effected by the signature
of the                transferor only, on the condition that an appropriate share
transfer deed shall                be submitted to the Company. </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>18.2. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <STRIKE>Shares<U></U></STRIKE><U>Securities</U> that are not paid up in full or are
               subject to any lien or pledge may not be transferred unless the transfer is
               approved by the Board, which may at its sole discretion withhold its approval
               without having to show grounds. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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>18.3. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Any transfer of <STRIKE>shares<U></U></STRIKE><U>Securities</U> that are not paid up in
               full shall be subject to the signature of the transferee and the signature of a
               witness in verification of the authenticity of the signatures on the share
               transfer deed. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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>18.4. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The transferor shall be deemed to be the Registered Holder of the transferred
               Securities until the name of the transferee is entered in the Register of
               Members. </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>18.5. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The share transfer deed shall be submitted to the office for registration
               together with the certificates to be transferred and such other evidence as the
               Company may require with regard to the transferor&#146;s title or right to
               transfer the Securities. The share transfer <STRIKE>deeds<U></U></STRIKE><U>deed</U> shall
               remain with the Company after <STRIKE>their<U></U></STRIKE><U>its</U> registration. </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>18.6. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Company may demand payment of a transfer registration fee at a rate to be
               determined by the Board from time to time. </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>18.7. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Board may close the Register of Members for a period no longer than 30 days
               every year. </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>18.8. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Upon the death of a Registered Holder of Securities of the Company, the Company
               shall recognize the guardians, administrators of the estate, executors of the
               will, and in the absence of such persons, the inheritors of the deceased person
               as the only ones entitled to be registered as the Registered Holders of
               Securities of the Company, subject to proof of their rights in a manner
               established by the Board. </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>18.9. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               In the event of the deceased member being a Registered Holder of a Security
               jointly with other persons, the surviving member shall be considered the sole
               Registered Holder of said Securities, upon the approval of the Company, without
               exempting the estate of the deceased joint holder from any of the obligations
               relating to the jointly held Securities. </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>18.10. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               A person acquiring a right to a Security by virtue of his being a guardian or
               administrator of the estate or inheritor of the deceased member, or receiver,
               liquidator or trustee in liquidation proceedings regarding a corporate member,
               or by any operation of law, may be subject to submission of such proof of
               entitlement as the Board may establish be entered as the Registered Holder of
               the respective Security or transfer the Security subject to the provisions of
               the Articles with regard to such transfer. </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>18.11. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               A person acquiring a Security as a result of a transfer by operation of law
               shall be entitled to dividends and other rights in respect of the Security and
               also to receive and certify the receipt of dividends and other sums of money in
               connection with the said Security; however, such person shall not be entitled to
               receive notices of the convening of General Meetings of the Company or to
               participate or vote therein or to exercise any right conferred by the Security
               with the exception of the aforementioned rights, pending the registration of
               such person in the Register of Members. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Issuance
of Shares</U></B></FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
<STRIKE>Board may issue<U></U></STRIKE><U>number of</U> shares<U>,</U> and other securities<STRIKE>,</STRIKE>
convertible or exercisable into shares, <STRIKE>up to</STRIKE><U>issued by the Company shall not
exceed</U> a maximum amount equal to the registered share capital of the Company; for this
purpose, securities convertible or exercisable into shares, shall be considered as having
been converted or exercised on the date of issuance. </FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>IV GENERAL MEETINGS </FONT></H1>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Annual
Meeting</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>20.1. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               An Annual Meeting shall be held once in every calendar year at such time (within
               a period of not more than fifteen (15) months after the last preceding Annual
               Meeting) and at such place as may be determined by the Board. </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>20.2. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Annual Meeting shall: </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=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20.2.1. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Discuss
the audited financial statements of the Company for the last fiscal                year;  </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=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20.2.2. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Appoint
auditors and establish their remuneration, or empower the Board to
               establish their remuneration;  </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=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20.2.3. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Appoint
the directors as stipulated in Article 32 below, and establish their
               remuneration;  </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=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20.2.4. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Discuss
any other business to be transacted at a General Meeting according to                the
Articles or by operation of law.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>21.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Extraordinary
Meeting</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>21.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All
General Meetings other than Annual Meetings shall be called                &#147;Extraordinary
Meetings&#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>21.2. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Board may, whenever it thinks fit, convene an Extraordinary Meeting, and
               shall be obligated to do so upon receipt of a requisition in writing in
               accordance with Section 63 of the Law. </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>21.3. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Members
of the Company shall not be authorized to convene an Extraordinary                Meeting
except as provided in Section 64 of the Law. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Notice
of General Meetings</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>22.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Prior
to any General Meeting<U>,</U> a written notice thereof shall be<STRIKE>               delivered
to all Registered Holders and to </STRIKE><STRIKE>all other persons entitled to
               attend thereat, and shall be otherwise</STRIKE> made public as required by Law.
Such                notice shall specify the place, the day and the hour of the General
Meeting, the                agenda of the meeting and <STRIKE>the proposed resolutions and </STRIKE> such
other <STRIKE>documents<U></U></STRIKE><U>information</U> required under law. The notice will be <STRIKE>delivered</STRIKE><U>published</U> not
less then <u>fourteen (14)</u> <STRIKE>twenty-one (21)</STRIKE> days prior to any                General Meeting.<U> The
Company shall not be required to deliver notice to each shareholder, </U><U>except
as may be specifically required by Law.</U></FONT></TD>
</TR>
</TABLE>
<BR>










<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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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><STRIKE>22.2.</STRIKE> </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <STRIKE>The accidental omission to give notice of a General Meeting, or the
               non-receipt of a notice by a </STRIKE> <STRIKE>member entitled to receive notices of
               General Meeting, shall not invalidate the proceedings of such </STRIKE> <STRIKE>a General
               Meeting.</STRIKE> </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><STRIKE>22.3.</STRIKE></FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><STRIKE>A
member entitled to receive notices of General Meeting may waive such right
                    before such meeting of </STRIKE><STRIKE>expost, and shall be deemed to have
waived such                     right with respect to any General Meeting at which </STRIKE><STRIKE>he
was present, in                     person or by proxy.</STRIKE></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"><U>22.2.</U> </FONT> </TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Any
written notice or other document may be served by the Company upon any
member either personally or by sending it by prepaid mail
addressed to such member at his address as described in the
Register of Members or such other address as he may have designated
in writing for the receipt of notices and other documents.</U> </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"><U>22.3.</U> </FONT> </TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Notwithstanding
anything to the contrary herein, notice by the Company of a General
Meeting which is published in one international wire service
shall be deemed to have been duly given on the date of such
publication.</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Quorum</U></B> </FONT> </TD>
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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>23.1. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Two or more members present in person or by proxy and holding shares conferring
               in the aggregate more than <STRIKE>thirty three and one
               third<U></U></STRIKE><U>twenty-five</U> percent (<STRIKE>33 1/3<U></U></STRIKE><U>25</U>%) of
               the total voting power attached to the shares of the Company, shall constitute a
               quorum at General Meetings. No business shall be considered or determined at a
               General Meeting, unless the requisite quorum is present when the General Meeting
               proceeds to consider and/or determine same business. </FONT></TD>
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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>23.2. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               If within half an hour from the time appointed for the General Meeting a quorum
               is not present, the General Meeting shall, if convened upon requisition under
               Section 64 of the Law, be dissolved, but in any other case it shall stand
               adjourned on the same day, in the next week, at the same time and place. The
               requisite quorum at an adjourned General Meeting shall be
               <STRIKE>one<U></U></STRIKE><U>any two</U> or more members, present in person or by
               proxy,<STRIKE> holding not less than thirty three and a third percent (33 1/3%) of
               the </STRIKE> <STRIKE>total voting power attached to the shares of the Company</STRIKE>. At an
               adjourned General Meeting the only businesses to be considered shall be those
               matters which might have been lawfully considered at the General Meeting
               originally called if a requisite quorum had been present, and the only
               resolutions to be adopted are such types of resolutions which could have been
               adopted at the General Meeting originally called. </FONT></TD>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>24.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Chairman</U></B></FONT></TD>
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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
Chairman, of the Board, or if there is no such chairman, or if he is not present, any
other person appointed by the members present, shall preside as Chairman at a General
Meeting of the Company. The Chairman of any General Meeting shall have no additional or
casting vote.  </FONT></TD>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Adoption
of Resolution at General Meetings</U></B> </FONT> </TD>
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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>25.1. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               A resolution<U>, including, but not limited to,&nbsp;a resolution to amend these
               Articles and to approve a merger </U> <U>of the Company,</U> shall be deemed
               adopted at a General Meeting if the requisite quorum is present and the
               resolution is supported by members present, in person or by proxy, vested with
               more than fifty percent (50%) of the total voting power attached to the shares
               whose holders were present, in person or by proxy, at such General Meeting and
               voted thereon, or such other percentage as is <STRIKE>set forth in</STRIKE><U>required
               by</U> these Articles or <STRIKE>as required by<U></U></STRIKE><U>by the</U> Law. </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><STRIKE>25.2.</STRIKE> </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <STRIKE>Any resolution to amend these Articles or to approve a merger of the Company,
               shall be deemed </STRIKE> <STRIKE>adopted at a General Meeting if supported by members,
               participating in person or by proxy, vested </STRIKE> <STRIKE>with a Determining Majority,
               which shall be more than fifty percent (50%) of the total voting power </STRIKE>
               <STRIKE>attached to the shares whose holders participated, in person or by proxy, at
               such General Meeting.</STRIKE> </FONT></TD>
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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><U>25.2. </U></FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><STRIKE>25.3.
</STRIKE>Any proposed resolution put to vote at a General Meeting shall           be decided
by a poll. </FONT></TD>
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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>25.3. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><STRIKE>25.4.
</STRIKE>Subject to approval by a General Meeting at which the requisite           quorum is
present, the chairman is obligated at the request of the General           Meeting, to
adjourn the General Meeting, and the adjourned meeting shall convene           at such
date and place as is decided by the General Meeting. If the General           Meeting is
adjourned by more than twenty-one (21) days, a notice of the           adjourned meeting
shall be given in the manner set forth in <STRIKE>sections<U></U></STRIKE><U>Sections</U> 67
through 69 of the Law. An adjourned           meeting may only transact such business as
left unfinished at the original           meeting. </FONT></TD>
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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><U>25.4.</U> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><STRIKE>25.5.
</STRIKE>A declaration by the Chairman of the General Meeting that a           proposed
resolution has been adopted or rejected, shall constitute conclusive           evidence
of the adoption or rejection, respectively, of same resolution, and no           further
proof verifying the contents of such declaration or the number or           proportion of
the votes recorded in favor of or against such resolution shall be           required. </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"><U>25.5.</U> </FONT> </TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Notwithstanding
anything to the contrary herein, for so long as the Shareholders Agreement is
in effect, at the written request of any two directors with respect to
any proposed action or transaction described below, such action or
transaction shall require the approval of the General Meeting by a
resolution supported by members present, in person or by proxy, vested
with at least 50.1% of the outstanding shares of the Company, or by such higher
approval threshold as may be required by Law:</U> </FONT> </TD>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>25.5.1.</U> </FONT> </TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>any
transaction of the Company or of a subsidiary of the Company with (i) an
Officer of the Company or a nominee to become a director of the Company,
(ii) a shareholder of the Company which owns 5% or more of its
outstanding share capital, (iii) a family member of the first degree of
any of the foregoing persons or (iv) an Affiliate of any of the
foregoing. &#147;<B>Officer</B>&#148; shall have the meaning of
&#147;office holder&#148; under the Law. &#147;<B>Affiliate</B>&#148; shall
mean, with respect to any party, any person (a) in which such party,
directly or indirectly, owns at least majority interest (both economic
and voting), (b) which directly or indirectly owns a majority interest
(both economic and voting) in such party, or (c) which, directly or
indirectly, is in Control of or is Controlled by such party. &#147;<B>Control</B>&#148; shall
mean, with respect to a person that is a corporation, the ownership,
directly or indirectly, of voting securities of such person carrying
more than 50% of the voting rights attaching to all voting securities of
such person which are sufficient, if exercised, to elect a majority of
its board of directors, and in relation to a person that is a partnership, limited
partnership, business trust or other similar entity, the ownership, directly or
indirectly, of voting securities of such person carrying more than 50%
of the voting rights attaching to all voting securities of the person or
the ownership of other interests entitling the holder to exercise
control and direction over the activities of such person;</U> </FONT> </TD>
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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U></U> </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>25.5.2.</U> </FONT> </TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>any
amendment to the Memorandum or these Articles;</U> </FONT> </TD>
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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U></U> </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>25.5.3.</U> </FONT> </TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>any
merger or consolidation of the Company;</U> </FONT> </TD>
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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U></U> </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>25.5.4.</U> </FONT> </TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>any
material change in the Company&#146;s scope of business;</U> </FONT> </TD>
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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U></U> </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>25.5.5.</U> </FONT> </TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>the
voluntary liquidation or dissolution of the Company;</U> </FONT> </TD>
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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U></U> </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>25.5.6.</U> </FONT> </TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>approval
of the Company&#146;s annual budget and business plan, and any material
deviation therefrom; and</U> </FONT> </TD>
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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U></U> </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>25.5.7.</U> </FONT> </TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>any
change of the signatory rights on behalf of the Company.</U> </FONT> </TD>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Voting
Power</U></B></FONT></TD>
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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>26.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Subject
to the provisions of Article 27.1 below and subject to any other                provision
hereof pertaining to voting rights attached or not-attached to shares                of
the Company, whether in general or in respect of a specific matter or
               matters, every member shall have one vote for each share registered in his
name                on the Register of Members, regardless of its denomination or class. </FONT></TD>
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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>26.2. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
case of equality of votes, the resolution shall be deemed to have been
               rejected. </FONT></TD>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Attendance
and Voting Rights at General Meeting</U></B></FONT></TD>
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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>27.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Unless
provided otherwise by the terms of issue of the shares, no member shall                be
entitled to be present or vote at a General Meeting (or be counted as part of
               the quorum thereat) unless all amounts due as at the date designated for
same                General Meeting with respect to his shares were paid. </FONT></TD>
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<font size=2></font></p>
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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>27.2. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
corporate body being a member of the Company and entitled to vote and/or
               attend at a General Meeting may exercise such rights by authorizing any
person,                whether in general or for a specific General Meeting, to be
present and/or vote                on its behalf. Upon the request of the Chairman of the
General Meeting, a                writing evidence of such authorization and its validity
(in a form acceptable to                the Chairman) shall be furnished thereto. </FONT></TD>
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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>27.3. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
member entitled to vote and/or attend at a General Meeting may appoint a
               proxy, whether is general or for a specific General Meeting, to exercise
such                rights, in a form approved by the Board. </FONT></TD>
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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>27.4. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
instrument appointing a proxy shall be delivered to the Company not later
               than forty-eight (48) hours before the time designated for the General
Meeting                at which the person named in the instrument proposes to vote
and/or attend. </FONT></TD>
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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>27.5. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
member entitled to vote and/or attend at a General Meeting and is legally
               incapacitated, may exercise such rights by his custodian. </FONT></TD>
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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>27.6. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If
two or more persons are registered as joint owners of any share, the right to
               attend at a General Meeting, if attached to such share, shall be conferred
upon                all of the joint owners, but the right to vote at a General Meeting
and/or the                right to be counted as part of the quorum thereat, if attached
to such share,                shall be conferred exclusively upon the senior amongst the
joint owners                attending the General Meeting, in person or by proxy; and for
this purpose                seniority shall be determined by the order in which the names
appear on the                Register of Members. </FONT></TD>
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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>27.7. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
voting on the terms of the instrument of proxy shall be legal even in case
               of prior death or incapacity or bankruptcy of the principal, and in
respect of a                corporate principal, in case of its winding up or revocation
of the instrument                of proxy or transfer of the respective share, unless a
notice in writing of such                death or incapacity or bankruptcy or winding up
or revocation of share transfer                shall have been received by the Register
of Members. </FONT></TD>
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<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
written notice of revocation of the proxy shall be valid if signed by the principal and
received by the Register of Members not later than one hour before the start of voting. </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>27.8. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>No
proxy shall be valid after the expiry of 12 months from the date of its           issue. </FONT></TD>
</TR>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>V &nbsp;&nbsp;BOARD OF DIRECTORS </FONT></H1>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Powers
of the Board</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>28.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Board shall be vested with the exclusive authority to exercise all of the
               Company&#146;s powers which are not, by Law, the Memorandum (for as long
as it                is in effect), the Articles or any applicable law, required to be
exercised by                the General Meeting, the General Manager, or any other organ
of the Company as                such term is defined in the Law. </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>28.2. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Board shall set the policy guidelines for the Company and shall supervise
               the performance and activities of the General Manager. </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>29.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Exercise
of Powers of the Board</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>29.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
powers conferred upon the Board shall be vested in the Board as<U> a</U>               collective
body, and not in each one or more of the directors individually, and                all
such powers may be exercised by the Board by adopting resolutions in
               accordance with the provisions of the Articles. </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>29.2. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><STRIKE>A<U></U></STRIKE><U>Except
as otherwise required by these Articles, a</U>               resolution shall be deemed
adopted at a meeting of the Board if supported by a                majority of the
directors attending such meeting and <STRIKE>voting</STRIKE><U>entitled to                vote</U> thereon.
The Chairman of the Board shall have no casting <STRIKE>vote.<U></U></STRIKE><U>, except as set
forth in Article 41.2.</U></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>29.3. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Board may hold meetings using any means of communication, provided that all
               of the directors participating can simultaneously hear one another. </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"><U>29.4.</U> </FONT> </TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>The
Board may adopt resolutions without convening a meeting, as provided in the
               Law.</U></FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>30.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Committees
of Directors</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>30.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Board may, subject to Section 112 of the Law, delegate any or all of its
               powers to committees, each consisting of two or more directors, one of
which                shall be an External Director, and it may, from time to time, revoke
or alter                the powers so delegated. <U>Without </U><U>derogating from the
generality of                the foregoing, subject to the Law, the Board may </U><U>delegate
to a committee                its power to approve the terms of compensation of </U><U>officers.
</U>Each                committee shall, in the exercise of the powers so delegated,
conform to any                regulations and conditions prescribed by the Board upon the
delegation or at any                other time. Each resolution adopted by a committee
within the powers delegated                to it by the Board shall be deemed to have
been held by the Board. </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>30.2. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Board will appoint from among its members an audit committee. All External
               Directors shall be members of the audit committee. </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>30.3. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
provision of the Articles with respect to the meetings of the Board, their
               convening and adoption of resolutions thereat shall apply, mutatis
mutandis, to                the meetings of any such committee, unless otherwise
prescribed by the Board. </FONT></TD>
</TR>
</TABLE>
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<p align=center>
<font size=2></font></p>
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<page>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Number
of Directors</U></B></FONT></TD>
</TR>
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<BR>




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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Unless
otherwise prescribed by a resolution adopted at a General Meeting, the Board shall
consist of not less <STRIKE>then<U></U></STRIKE><U>than</U> four (4) nor more <STRIKE>then twelve (12<U></U></STRIKE><U>than
eight (8</U>) directors (including the External Directors appointed as required under the
Law).  </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Appointment
and Removal of Directors</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>32.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
directors shall be elected annually at a General Meeting as aforesaid and
               shall remain in office until the next Annual Meeting at which time they
shall                retire, unless their office is vacated previously as stipulated in
the Articles,                provided however that the External Directors shall be
appointed, and shall                remain in office, as prescribed in the Law. </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>32.2. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
elected directors shall assume office on the day of their election. </FONT></TD>
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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>32.3. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
retiring director may be reelected. Pending the convening of an Annual Meeting
               at which the directors are to retire from office, all directors shall
remain in                office until the convening of the Annual Meeting of the Company
except in case                of prior vacation of a director&#146;s office according to
the Articles. </FONT></TD>
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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>32.4. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If
no directors are elected at the Annual Meeting, all the retiring directors
               shall remain in office pending their replacement by a General Meeting of
the                Company. </FONT></TD>
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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>32.5. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Except
with regard to a director whose tenure of office expires upon the
               convening of a General Meeting or a person recommended by the Board to
serve as                director, no motions for appointment of a candidate as a director
shall be made                unless a notice in writing signed by a member of the Company
(other than the                candidate himself) who is entitled to participate in and
vote at the meeting,                stating the intent of the said member to propose a
candidate for election to the                office of director, together with a document
in writing by the candidate                expressing his consent to be so elected, shall
have been received at the office                of the Company within a period of not
less than forty-eight (48) hours and not                more than forty-two (42) days
before the appointed date of the General Meeting. </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>32.6. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
General Meeting may, by way of a resolution, remove a director from office
               before the expiry of his tenure, and appoint another person to serve as
director                of the Company in his place, and also appoint a number of
directors in the event                of the number of directors having decreased below
the minimum established by the                General Meeting. </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>32.7. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
provisions of this Article 32 shall not apply to External Directors, whose
               appointment and removal shall be pursuant to the relevant provisions of
the Law. </FONT></TD>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>33.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Qualification
of Directors</U></B></FONT></TD>
</TR>
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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
No
person shall be disqualified to serve as a director by reason of his not holding shares in
the Company or by reason of his having served as director in the past. </FONT></TD>
</TR>
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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
provisions of this <STRIKE>section 32<U></U></STRIKE><U>Article 33</U> shall not apply to External
Directors, whose qualifications are as set forth in the relevant provisions of the Law. </FONT></TD>
</TR>
</TABLE>
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<font size=2></font></p>
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<page>


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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>34.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Vacation
of Director&#146;s Office</U></B> </FONT> </TD>
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<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
office of a director shall be vacated:  </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>34.1. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Upon his death; </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>34.2. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               On the date at which he is declared a bankrupt; </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>34.3. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               On the date he is declared legally incapacitated; </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>34.4. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               On the date stipulated therefor in the resolution of his election or the notice
               of his appointment, 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>34.5. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               On the date stipulated therefor in the resolution or notice of his removal or on
               the date of the delivery of such notice to the Company, whichever is later; </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>34.6. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               On the date stipulated therefor in a written notice of resignation thereby
               delivered to the Company or upon its delivery to the Company, whichever is
               later. </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>34.7. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               If he is convicted in a final judgment of an offence of a nature which
               disqualifies a person from serving as a director, as set forth in the Law. </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>34.8. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               If a court of competent jurisdiction decides to terminate his office, in
               accordance with the provisions of the Law, in a decision or judgment for which
               no stay of enforcement is granted. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>35.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Remuneration
of Directors</U></B></FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
directors shall be entitled to remuneration by the Company for their services as
directors. The remuneration may be established as a global sum or as a fee for
participation in meetings. In addition to such remuneration, every director shall be
entitled to a refund of reasonable expenses for travel, per diem money, and other expenses
related to the discharge of his duties as a director. </FONT></TD>
</TR>
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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
provisions of this <STRIKE>section 34<U></U></STRIKE><U>Article 35</U> shall not apply to External
Directors, whose remuneration shall be in accordance with the relevant provisions of the
Law. </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>36.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Conflict
of Interests</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><STRIKE>36.1.</STRIKE> </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <STRIKE>Subject to the provisions of the Law, the Company may consider and approve,
               by a resolution of the </STRIKE> <STRIKE>Board, each of the following transactions, which
               are not detrimental to the best interests of the </STRIKE> <STRIKE>Company:</STRIKE> </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=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><STRIKE>36.1.1.</STRIKE></FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><STRIKE>a
transaction to which the Company is a party to, and in which an officer of           the
Company </STRIKE><STRIKE>has an interest; or</STRIKE> </FONT></TD>
</TR>
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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><STRIKE>36.1.2.</STRIKE></FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><STRIKE>a
transaction between the Company and officer of the Company; or</STRIKE> </FONT></TD>
</TR>
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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><STRIKE>36.1.3.</STRIKE></FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><STRIKE>such
other transactions that require special approval pursuant to the Law.</STRIKE> </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<STRIKE>Notwithstanding
the foregoing, in the event of an extraordinary transaction (&#147;<B>Iska Chariga</B>&#148; as
</STRIKE><STRIKE>defined in the Law) or the approval of the terms of service or employment
(including any waiver, </STRIKE><STRIKE>insurance or indemnification) of an officer of the Company,
such transaction shall require such </STRIKE><STRIKE>additional approval as stipulated by the Law.
Any officer shall not participate in the meeting of </STRIKE><STRIKE>the Board or audit committee
(whichever applicable), where such resolution is considered and shall </STRIKE><STRIKE>not vote in
such meeting, unless the majority of the members of the Board or audit committee shall
</STRIKE><STRIKE>have an interest in the approval of the transaction, in which case such
transaction must also be </STRIKE><STRIKE>approved by the General Meeting.</STRIKE> </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


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<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>The
approval of any transaction that involves a conflict of interest with an Officer shall be
</U> <U>approved in accordance with the Law and these Articles.</U> </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Alternate
Director</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>37.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Subject
to the approval of the Board, a director may, by delivering a written
               notice to the Company, appoint an alternate for himself (hereinafter
referred to                as &#147;<B>Alternate Director</B>&#148;), remove such
Alternate Director and                appoint another Alternate Director in place of any
Alternate Director appointed                by him whose office has been vacated for any
reason whatsoever. The appointment                of the Alternate Director shall be for
an indefinite period and for all                purposes, unless restricted to a specific
period, to a specific meeting or act                of the Board, to a specific matter or
in any other manner, and same restriction                was specified in the appointment
instrument or in a written note delivered to                the Company. </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>37.2. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Any notice delivered to the Company pursuant to Article 37.1 shall become
               effective on the date specified therefor therein or upon delivery thereof to the
               Company or upon approval of the Board, whichever is later. </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>37.3. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               An Alternate Director shall be vested with all rights and shall bear all
               obligations of the director who appointed him, provided, however, that he shall
               not be entitled to appoint an alternate for himself (unless the instrument
               appointed him expressly provides otherwise), and provided further that the
               Alternate Director shall have no standing at any meeting of the Board or any
               committee thereof whereat the director who appointed him is present. </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>37.4. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The following may not be appointed nor serve as an Alternate Director: (i) a
               person not qualified to be appointed as a director, (ii) an actual director, or
               (iii) another Alternate Director. </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>37.5. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The office of an Alternate Director shall be vacated under the circumstances,
               mutatis mutandis, set forth in Article 34, and such office shall further be ipso
               facto vacated if the director who appointed such Alternate Director ceases to be
               a director. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>38.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Meeting
of the Board</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>38.1. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Subject to Articles 40 and 41 below, the Board may meet, adjourn its meeting and
               otherwise determine and regulate such meetings and their proceedings as it deems
               fit. </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>38.2. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Upon the vacation of the office of a director, the remaining directors may
               continue to discharge their functions until the number of remaining directors
               decreases below the minimum established in the Articles. In the latter case the
               remaining directors may only act to convene a General Meeting of the Company. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


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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>38.3. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
<U>Board, by unanimous approval of all </U>directors<U> then in office,</U>               may
at any time appoint any person to serve as director as replacement for a
               vacated office or in order to increase the number of directors, subject to
the                condition that the number of directors shall not exceed the maximum
established                in these Articles. Any so appointed director shall remain in
office until the                next <STRIKE>General<U></U></STRIKE><U>Annual</U> Meeting, at which
he may be reelected. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Convening
Meetings of the Board</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>39.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Chairman of the Board may, at any time, convene a meeting of the Board, and
               shall be obliged to do so (i) at least once every three months, (ii) upon
               receipt of a written demand from any one director, or (iii) in accordance
with <STRIKE>section<U></U></STRIKE><U>Section</U> 122(4) or 169 of the Law. In the event there
               is no such Chairman or a meeting of the Board was not convened to a date
which                is no later then ten (10) days following delivery of such written
demand or                receipt of the relevant notice or report, any of the
abovementioned directors                may convene a meeting of the Board. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Convening
a meeting of the Board shall be made by delivering a notice thereof to all of the
directors within a reasonable length of time prior to the date thereof. Such notice shall
specify the exact time and place of the meeting so called and a reasonably detailed
description of the all of the issues on the agenda for such meeting. </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>39.2. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
resolution adopted at a meeting of the Board, which had not convened in
               accordance with the necessary requirements set forth in the Law or these
               Articles may be invalidated in accordance with the applicable provisions
of the                Law. </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>39.3. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
director may waive his right to receive prior notice of any meeting, in
               general or in respect of a specific meeting, and shall be deemed to have
waived                such right with respect to any meeting at which he was present. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Quorum</U></B></FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
A
majority of the number of directors then in office <U>and entitled to participate in the
discussion </U>shall constitute a quorum at meetings of the Board, except if and as
otherwise required in accordance with the Law. No business shall be considered or
determined at any meeting of the Board unless the requisite quorum is present when the
meeting proceeds to consider or determine same business. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>41.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Chairman
of the Board</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"><U>41.1.</U> </FONT> </TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Board may from time to time elect one of its members to be the Chairman
                    of the Board, remove such Chairman from office and appoint another in
his place.                     However, the General Manager shall not serve as the
Chairman of the Board, nor                     shall the Chairman of the Board be vested
with the powers designated to the                     General Manager, except in
accordance with <STRIKE>section<U></U></STRIKE><U>Section</U>                    121(3) of the Law.
The Chairman of the Board shall preside at every meeting of                     the
Board, but if there is no such Chairman, or if he is not present or he is
                    unwilling to take the chair at any meeting, the directors present
shall elect                     one of their members to be chairman of such meeting. </FONT></TD>
</TR>
</TABLE>
<BR>


<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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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><U>41.2.</U> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Chairman of the Board shall have no casting vote<STRIKE>.<U></U></STRIKE><U>,
                    unless (i) the Chairman of the Board is </U><U>then Mr. Shlomo Nehama
and (ii)                     Nechama Investments, together with any Affiliates thereof,
then </U><U>holds at                     least 25.05% of the outstanding shares of the
Company. Notwithstanding the                     foregoing, in </U><U>case Mr. Shlomo
Nehama elects to exercise his casting vote                     in respect of a specific
resolution </U><U>brought before the Board (the                     &#147;<B>Triggering
Resolution</B>&#148;), then (a) prior to such exercise,                     Nechama </U><U>Investments
shall be required to trigger the &#147;Buy Me Buy                     You&#148; mechanism
set forth in Section 6 of </U><U>the Shareholders Agreement                     as an
Offering Party (as defined in the Shareholders Agreement), </U><U>whereby
                    the Triggering Resolution will be pending until the consummation of
the sale of                     the </U><U>Restricted Shares (as defined in the
Shareholders Agreement) of one                     party to the Shareholders </U><U>Agreement
to the other party of the                     Shareholders Agreement in accordance with
such &#147;Buy Me Buy </U><U>You&#148; mechanism; and (b) in the event that three (3)
directors of the                     Company so require, the </U><U>Triggering Resolution
shall be conditioned upon                     the approval of the General Meeting
pursuant to </U><U>Article 25.1. Upon a                     transfer of the Restricted
Shares by Kanir to third party in accordance with </U><U>the terms of the Shareholders
Agreement, the casting vote of the                     Chairman of the Board shall </U><U>expire.</U></FONT></TD>
</TR>
</TABLE>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>VI &nbsp;&nbsp;GENERAL MANAGER </FONT></H1>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>42.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>General
Manager</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>42.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Board shall appoint one or more persons, whether or not directors, as
               General Manager(s) of the Company, either for a definite period or without
any                limitation of time, and may confer powers, authorities and rights
and/or impose                duties and obligations upon such person or persons and
determine his or their                salaries as the Board may deem fit and subject to
the provisions of the Law. <U>Subject to the Law, the Board may </U><U>delegate to the
General Manager its                power to approve the terms of compensation of </U><U>other
officers.</U></FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>VII &nbsp;&nbsp;MINUTES OF THE
BOARD </FONT></H1>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>43.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Minutes</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>43.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
proceedings of each meeting of the Board and meeting of committee of the
               Board shall be recorded in the minutes of the Company. Such minutes shall
set                forth the names of the persons present at every such meeting and all
resolutions                adopted thereat and shall be signed by the chairman of the
meeting. </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>43.2. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All
minutes approved and signed by the chairman of the meeting or the Chairman
               of the Board, shall constitute prima facie evidence of its contents. </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>VIII &nbsp;&nbsp;INTERNAL AUDITOR </FONT></H1>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>44.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Internal
Auditor</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>44.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Board shall appoint an internal auditor in accordance with the provisions of
               the Law. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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>44.2. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Internal Auditor shall submit to the audit committee a proposal for an
               annual or periodic work program for its approval. The Audit Committee
shall                approve such proposal subject to the modifications which it
considers necessary. </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>44.3. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
General Manager shall be in charge of and supervise the Internal                auditor&#146;s
performance of its obligations. </FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>IX &nbsp;&nbsp;DIVIDENDS AND
PROFITS </FONT></H1>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>45.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Declaration
of Dividends</U></B></FONT></TD>
</TR>
</TABLE>
<BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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>45.1. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Board may, from time to time, subject to the provisions of the Law, declare
               a dividend at a rate as the Board may deem considering the accrued profits of
               the Company as set forth in its financial statements, and provided that the
               payment of such dividends will not reasonably prevent the Company from meeting
               its current and expected liabilities. </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>45.2. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Subject to any special or restricted rights conferred upon the holders of shares
               as to dividends, all dividends shall be declared and paid in accordance with the
               paid-up capital of the Company attributable to the shares in respect of which
               the dividends are declared and paid. The paid-up capital attributable to any
               share (whether issued at its nominal value, at a premium or at a discount),
               shall be nominal value of such share. Provided, however that if the entire
               consideration for same share was not yet paid to the Company, the paid-up
               capital attribute thereto shall be such proportion of the nominal value as the
               amount paid to the Company with respect to the share bears to its full
               consideration, and further provided the amounts which have been prepaid on
               account of shares and the Company has agreed to pay interest thereon shall not
               be deemed, for the purposes of this Article, to be payments on account of such
               shares. In the event no amount has been paid with respect to any shares
               whatsoever, dividends may be declared and paid according to the nominal value of
               the shares. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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>45.3. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Notice of the declaration of dividends shall be <STRIKE>delivered to all those
               entitled to such dividends<U></U></STRIKE><U>published </U> <U>as required by
               applicable law</U>. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>46.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Rights
to Participate in the Distribution of Dividends</U></B></FONT></TD>
</TR>
</TABLE>
<BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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>46.1. </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Subject to special rights with respect to the Company&#146;s profits to be
               conferred upon any person pursuant to these Articles and the Law, all the
               profits of the Company may be distributed among the members entitled to
               participate in the distribution of dividends. </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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>46.2. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Notwithstanding
for foregoing, a holder of shares shall not be attributed with                the right
to participate in the distribution of dividends <STRIKE>which were declared                for
a period preceding<U></U></STRIKE><U>the record </U><U>date for which                preceded</U> the
date of<STRIKE> the actual</STRIKE> issuance<U> of such shares</U>. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>47.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Interest
on Dividends</U></B></FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
Company shall not be obligated to pay, and shall not pay interest on declared dividends.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>48.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Payment
of Dividends</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Subject
to Article 49, a declared dividend may be paid by wire transfer or a check made to the
order of the person entitled to receive such dividend (and if there are two or more
persons entitled to the dividend in respect of the same share &#151; to the order of any
one of such persons) or to the order of such person as the person entitled thereto may
direct in writing. Same check shall be sent to the address of the person entitled to the
dividend, as notified to the Company. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>49.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Payment
in Specie</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Upon
the recommendation of the Board, dividends may be paid, wholly or partly, by the
distribution of specific assets of the Company and/or by the distribution of shares and/or
debentures of the Company and/or of any other company, or in any combination of such
manners. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>50.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Setting-Off
Dividends</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
Company&#146;s obligation to pay dividends or any other amount in respect of shares, may
be set-off by the Company against any indebtedness, however arising, liquidated or
non-liquidated, of the person entitled to receive the dividend. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
provisions contained in this Article shall not prejudice any other right or remedy vested
with the Company pursuant to the Articles or any applicable law. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>51.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Unclaimed
Dividends</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>51.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dividends
unclaimed by the person entitled thereto within thirty (30) days after                the
date stipulated for their payment, may be invested or otherwise used by the
               company, as it deems fit, until claimed; but the Company shall not be
deemed a                trustee in respect thereof. </FONT></TD>
</TR>
</TABLE>
<BR>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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>51.2. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dividends
unclaimed within the period of seven (7) years from the date                stipulated
for their payment, shall be forfeited and shall revert to the                Company,
unless otherwise directed by the Board<U>.</U></FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>52.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Reserves
and Funds</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>52.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Board may, before recommending the distribution of dividends, determine to
               set aside out of the profits of the Company or out of an assets
revaluation fund                and carry to reserve or reserves such sums as it deems
fit, and direct the                designation, application and use of such sums. The
Board may further determine                that any such sums which it deems prudent not
to distribute as dividends will                not be set aside for reserve, but shall
remain as such at the disposal of the                Company. </FONT></TD>
</TR>
</TABLE>
<BR>


<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>



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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>52.2. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Board may, from time to time, direct the revaluation of the assets of the
               Company, in whole or in part, and the creation of an assets revaluation
fund out                of the revaluation surplus, if any. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>53.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Capitalization
of Profits</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>53.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Board may capitalize all or any part of the sums or assets allocated to the
               credit of any reserve fund or to the credit of the profit and loss account
or                being otherwise distributable as dividends (including sums or assets
received as                premiums on the issuance of shares or debentures), and direct
accordingly that                such sums or assets be released for distribution amongst
the members who would                have been entitled thereto if distributed by way of
dividends and in the same                proportion; provided that same sums or assets be
not paid in cash or in specie                but be applied for the payment in full or in
part of the unpaid consideration of                the issued shares held by such members
and/or for the payment in full of the                consideration (as shall be
stipulated in said resolution) for shares or                debentures of the Company to
be issued to such members subsequent to the date of                said resolution,
credited as fully paid up. </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>53.2. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
the event a resolution as aforesaid shall have been adopted, the Board shall
               make all adjustments and applications of the moneys or assets resolved to
be                capitalized thereby, and shall do all acts and things required to give
effect                thereto. The Board may authorize any person to enter into agreement
with the                Company on behalf of all members entitled to participate in such
distribution,                providing for the issuance to such members of any shares or
debentures, credited                as fully paid, to which they may be entitled upon
such capitalization or for the                payment on behalf of such members, by the
application thereto of the                proportionate part of the money or assets
resolved to be capitalized, of the                amounts or any part thereof remaining
unpaid on their existing shares, and any                agreement made under such
authority shall be effective and binding upon all such                members. </FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>X &nbsp;&nbsp;ACCOUNTING BOOKS </FONT></H1>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>54.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Accounting
Books</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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>54.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Board shall cause the Company to hold proper accounting books and to prepare
               an annual balance sheet, a statement of Profit and Loss, and such other
               financial statements as the Company may be required to prepare under law. </FONT></TD>
</TR>
</TABLE>
<BR>





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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The accounting books of the Company shall be held at the office or at a place deemed fit by
the Board, and they shall be open to inspection by the directors. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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>54.2. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Board may determine at its sole discretion the terms on which any of the
               accounts and books of the Company shall be open to inspection by members,
and no                member (other than a director) shall be entitled to inspect any
account or                ledger or document of the Company unless such right is granted
by law or by the                Board. </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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>54.3. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At
least once a year, the Board shall submit to the Annual Meeting financial
               statements for the period from the previous statement as required by Law.
The                balance sheet shall be accompanied by an auditors&#146; report<STRIKE> and
a report                by the Board on the position of the Company<U></U></STRIKE><U>, </U><U>if
available.</U></FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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"><U>54.4.</U> </FONT> </TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>The
Company shall not be required to send copies of its financial statements to
               members</U>. </FONT></TD>
</TR>
</TABLE>
<BR>


<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>XI &nbsp;&nbsp;BRANCH REGISTERS </FONT></H1>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>55.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Authority
to keep Branch Registers</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
Company may keep branch registers in any reciprocal state.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>56.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Provisions
in respect of keeping Branch Registers</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Subject
to the provisions contained in the Law, the Board shall be authorized to make such rules
and procedures in connection with the keeping of branch registers as it may, from time to
time, think fit. </FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>XII &nbsp;&nbsp;SIGNATURES </FONT></H1>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>57.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>The
Company&#146;s Signature</U></B></FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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>57.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
document shall be deemed signed by the Company upon the fulfillment of the
               following: </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>57.1.1. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>It
bears the name of the Company in print;  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>57.1.2. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>It
bears the signature of one or more persons authorized therefor by the Board;
               and  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>57.1.3. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
act of the person authorized by the Board as aforesaid was within its
               authority and without deviation therefrom.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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>57.2. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
signatory rights on behalf of the Company shall be determined by the Board. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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>57.3. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>An
authorization by the Board as provided in Article 57.2 may be for a specific
               matter, for a specific document or for a certain sort of document or for
all the                Company&#146;s documents or for a definite period of time or for
an unlimited                period of time, provided that any such authority may be
terminated by Board, at                will. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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>57.4. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
provisions of this Article shall apply both to the Company&#146;s documents
               executed in Israel and the Company&#146;s documents executed abroad. </FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>XIII &nbsp;&nbsp;NOTICES </FONT></H1>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>58.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Notices
in Writing</U></B></FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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>58.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Notices
pursuant to the Law, the Memorandum and the Articles shall be made in                the
manner prescribed by the Board from time to time. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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>58.2. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Unless
otherwise prescribed by the Board, all notices shall be made in writing
               and shall be sent by mail. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>59.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Delivery
of Notices</U></B></FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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>59.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Each
member and each director shall notify the Company in writing of his address
               for the receipt of notices, documents and other communications relating to
the                Company, its business and affairs. </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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>59.2. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Any
notice, document or other communication shall be deemed to have been
               received at the time received by the addressee<STRIKE> or at its address</STRIKE>,
or if                sent by registered mail<STRIKE> to same address &#151;</STRIKE><U>, </U>within
<STRIKE>seven<U></U></STRIKE><U>three</U> (<STRIKE>7<U></U></STRIKE><U>3</U>) days from its
               dispatch, whichever is earlier. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=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>59.3. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
address for the purposes of Article 59.2 shall be the address furnished
               pursuant to Article 59.1, and the address of the Company for the purposes
of                Article 59.2 shall be its registered address or principal place of
business. </FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>XIV &nbsp;&nbsp;INDEMNITY AND
INSURANCE </FONT></H1>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>60.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U><B>Indemnity
of Officers</B></U></FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
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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>60.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Company may, from time to time and subject to any provision of law,           indemnify
an Officer in respect of a liability or expense set out below which is           imposed
on him or incurred by him as a result of an action taken in his capacity           as an
Officer of the Company: </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=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>60.1.1. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>monetary
liability imposed on him in favor of a third party by a judgment,           including a
settlement or a decision of an arbitrator which is given the force           of a
judgment by court order;  </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=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>60.1.2. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>reasonable
litigation expenses, including legal fees, incurred by the Officer as           a result
of an investigation or proceeding instituted against such Officer by a
          competent authority, which investigation or proceeding has ended without the
          filing of an indictment or in the imposition of financial liability in lieu of
a           criminal proceeding, or has ended in the imposition of a financial obligation
in           lieu of a criminal proceeding for an offence that does not require proof of
          criminal intent (the phrases &#147;proceeding that has ended without the filing
          of an indictment&#148; and &#147;financial obligation in lieu of a criminal
          proceeding&#148; shall have the meanings ascribed to such phrases in Section
          260(a)(1a) of the Companies Law); and  </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=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>60.1.3. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>reasonable
litigation expenses, including legal fees, which the Officer has           incurred or is
obliged to pay by the court in proceedings commenced against him           by the Company
or in its name or by any other person, or pursuant to criminal           charges of which
he is acquitted or criminal charges pursuant to which he is           convicted of an
offence which does not require proof of criminal intent.  </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>60.2. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Company may, from time to time and subject to any provision of the law: </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>60.2.1. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Undertake
in advance to indemnify an Officer of the Company for any of the           following:  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>any
liability as set out in Article 60.1.1 above, provided that the undertaking
               to indemnify is limited to the classes of events which in the opinion of
the                Board can be anticipated in light of the Company&#146;s activities at
the time                of giving the indemnification undertaking, and for an amount
and/or criteria                which the Board has determined are reasonable in the
circumstances and, the                events and the amounts or criteria that the Board
deem reasonable in the                circumstances at the time of giving of the
undertaking are stated in the                undertaking; or  </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>any
liability stated in Article 60.1.2 or 60.1.3 above;  </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=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>60.2.2. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>indemnify
an Officer after the occurrence of the event which is the subject of           the
indemnity.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>61.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Insurance
of Officer</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
Company may enter into an agreement for the insurance of the liability of an
<STRIKE>officer<U></U></STRIKE><U>Officer</U>, in whole or in part, with respect to any liability
which may imposed upon such <STRIKE>officer<U></U></STRIKE><U>Officer</U> as a result of an act
performed by same <STRIKE>officer<U></U></STRIKE><U>Officer</U> in his capacity as an
<STRIKE>officer<U></U></STRIKE><U>Officer</U> of the Company, for any of the following: </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=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>61.1.1. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
breach of a cautionary duty toward the Company or toward another person;  </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=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>61.1.2. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
breach of a fiduciary duty toward the Company, provided the <STRIKE>officer<U></U></STRIKE><U>Officer</U> acted
in good faith and has had reasonable           ground to assume that the act would not be
detrimental to the Company;  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>61.1.3. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
monetary liability imposed upon an <STRIKE>officer<U></U></STRIKE><U>Officer</U> toward
          another.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>61A.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Exemption</U></B></FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Subject
to the provisions of the Companies Law, including the receipt of all approvals as required
therein or under any applicable law, the Board may resolve in advance to exempt an
<STRIKE>officer<U></U></STRIKE><U>Officer</U> from all or part of such
<STRIKE>officer<U></U></STRIKE><U>Officer</U>&#146;s responsibility or liability for damages caused
to the Company due to any breach of such <STRIKE>officer<U></U></STRIKE><U>Officer</U>&#146;s duty
of care towards the Company. </FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>XV WINDING UP </FONT></H1>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>62.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Distribution
of Assets</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
If
the Company be wound up, then, subject to provisions of any applicable law and to any
special or restricted rights attached to a share, the assets of the Company in excess of
its liabilities shall be distributed among the members in proportion to the paid-up
capital of the Company attributable to the shares in respect of which such distribution
is being made. The paid-up capital attributable to any share (whether issued at its
nominal value, at a premium or at a discount), shall be a nominal value of such share,
provided, however, that if the entire consideration for same share was not yet paid to
the Company, the paid-up capital attributable thereto shall be such proportion of the
nominal value as the amount paid to the Company with respect to the share bears to its
full consideration.  </FONT></TD>
</TR>
</TABLE>
<BR>


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     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        F:\EDGAR Filing\Ellomay Capital Ltd\86089\a86089.eep             -->
     <!-- Control Number: 86089                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Ellomay Capital Ltd                                              -->
     <!-- Project Name:   6-K                                                              -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>6-K</TITLE>
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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Exhibit 3</U></B> </FONT> </P>





<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TH></TH>
     <TH></TH>
     <TH></TH></TR>
<TR VALIGN="TOP">
     <TD WIDTH="33%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="34%" ALIGN="Center" VALIGN="Middle"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>PROXY CARD</B> </FONT></TD>
     <TD WIDTH="20%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="10%" ALIGN="Center" VALIGN="Middle"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Please mark
                                                                        <BR> your votes
<BR>                                                                         like this</FONT></TD>
     <TD WIDTH="3%" ALIGN="Left" VALIGN="Middle"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><FONT size="3" face="Wingdings">x</font></FONT></TD></TR>
</TABLE>
<BR>




<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="18%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="7%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="7%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="7%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="26%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="7%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="7%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="7%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>



<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">FOR all<BR>Nominees</FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"> WITHHOLD<BR> AUTHORITY<BR>for all Nominees</FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"> FOR all<BR> Nominees<BR> except (see<BR> instructions<BR> below)</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">FOR</FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">AGAINST</FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">ABSTAIN</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1.</FONT></TD>
     <TD colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">To elect five members of the Board of Directors  to hold office  until the next annual  meeting of  shareholders  and until their  respective successors are duly elected and qualified. The nominees are:</FONT></TD>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><FONT size="3" face="Wingdings">o</font></FONT></TD>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><FONT size="3" face="Wingdings">o</font></FONT></TD>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><FONT size="3" face="Wingdings">o</font></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4.</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">To approve the payment of directors&#146; fees to the directors of the Company.</FONT></TD>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><FONT size="3" face="Wingdings">o</font></FONT></TD>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><FONT size="3" face="Wingdings">o</font></FONT></TD>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><FONT size="3" face="Wingdings">o</font></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">FOR</FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">AGAINST</FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">ABSTAIN</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NOMINEES:</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(01) Shlomo Nehama<BR>(02) Ran Fridrich<BR>(03) Hemi Raphael<BR>(04) Oded Akselrod<BR>(05) Anita Leviant</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5A.</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">To approve the Company&#146;s entry into indemnification agreements with, the provision of exemptions to, and the procurement of a directors&#146; liability insurance policy for, Ran Fridrich and Shlomo Nehama.</FONT></TD>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><FONT size="3" face="Wingdings">o</font></FONT></TD>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><FONT size="3" face="Wingdings">o</font></FONT></TD>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><FONT size="3" face="Wingdings">o</font></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">YES</FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NO</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD colspan=5><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>INSTRUCTION: To withhold authority to vote for any individual nominee, mark &#147;FOR all except&#148; and write the name of such individual for whom you wish your vote to be withheld below:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5B.</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">In connection with Proposal 5A above, please indicate whether you have a &#147;personal interest&#148; in the approval of the Proposal and, if you indicate YES, please provide details.</FONT></TD>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><FONT size="3" face="Wingdings">o</font></FONT></TD>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><FONT size="3" face="Wingdings">o</font></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD colspan=5><HR SIZE=1 NOSHADE WIDTH=100% ALIGN=center></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">FOR</FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">AGAINST</FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">ABSTAIN</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">FOR</FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">AGAINST</FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">ABSTAIN</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2.</FONT></TD>
     <TD colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">To reappoint Kost Forer Gabbay &amp; Kasierer (a member of Ernst &amp; Young Global) as the independent auditors of the Company for the fiscal year ended December 31, 2008, and to authorize our Board of Directors to approve the remuneration of the independent auditors in accordance with the volume and nature of their services.</FONT></TD>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><FONT size="3" face="Wingdings">o</font></FONT></TD>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><FONT size="3" face="Wingdings">o</font></FONT></TD>
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     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6A.</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">To approve the terms of a management services  agreement  among the Company,  Meisaf Blue &amp; White  Holdings  Ltd.  and Kanir Joint  Investments (2005) Limited Partnership.</FONT></TD>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><FONT size="3" face="Wingdings">o</font></FONT></TD>
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     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">YES</FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NO</FONT></TD>
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     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6B.</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">In connection with Proposal 6A above, please indicate whether you have a &#147;personal interest&#148; in the approval of the Proposal and, if you indicate YES, please provide details.</FONT></TD>
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     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
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     <TD COLSPAN="11" ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><FONT size="2" face="Wingdings 3">q</font> FOLD AND INSERT IN ENVELOPE PROVIDED <FONT size="2" face="Wingdings 3">q</font></B></FONT></TD></TR>
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     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
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     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">FOR</FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">AGAINST</FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">ABSTAIN</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">FOR</FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">AGAINST</FONT></TD>
     <TD ALIGN="Center" VALIGN="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">ABSTAIN</FONT></TD></TR>
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     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3.</FONT></TD>
     <TD COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">To review and approve a reverse share split of our ordinary shares at the ratio of one-for-ten and to empower the Company&#146;s Board of Directors to set the date for such reverse share split and to amend the Company&#146;s Amended and Restated Articles of Association and Memorandum of Association to effect such reverse share split.</FONT></TD>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><FONT size="3" face="Wingdings">o</font></FONT></TD>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><FONT size="3" face="Wingdings">o</font></FONT></TD>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><FONT size="3" face="Wingdings">o</font></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">7.</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">To amend and restate the Company&#146;s Amended and Restated Articles of Association by adopting the Second Amended and Restated Articles of Association of the Company attached to the Proxy Statement.</FONT></TD>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><FONT size="3" face="Wingdings">o</font></FONT></TD>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><FONT size="3" face="Wingdings">o</font></FONT></TD>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><FONT size="3" face="Wingdings">o</font></FONT></TD></TR>
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     <TD WIDTH="33%" ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>COMPANY ID:
<BR>
<BR>PROXY NUMBER:
<BR>
<BR>ACCOUNT NUMBER:</B> </FONT></TD></TR>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Signature ______________________________________ Signature ______________________________________ Date __________, 2008.</B> </FONT>
</P>





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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Note: Please sign exactly as name
appears hereon. When shares are held by joint owners, both should sign. When signing as
attorney, executor, administrator, trustee, guardian, or corporate officer, please give
title as such. </FONT> </P>



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<TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><FONT size="2" face="Wingdings 3">q</font> FOLD AND INSERT IN ENVELOPE PROVIDED <FONT size="2" face="Wingdings 3">q</font></B>  </FONT></TD></TR>

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<TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>ELLOMAY CAPITAL LTD.</B> </FONT> </TD></TR>
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<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>
                            THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS
<BR>                  FOR THE ANNUAL MEETING OF SHAREHOLDERS TO BE HELD ON DECEMBER 30, 2008
</b></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
undersigned, a shareholder of Ellomay Capital Ltd., an Israeli company (the
<B>&#147;Company&#148;), </B>revoking any previous proxies, does hereby appoint Ran
Fridrich and Yosef Zylberberg (each of them hereinafter, the <B>&#147;Proxy&#148;), </B>or
either one of them, with the full power of substitution, and hereby authorizes the Proxy
to represent and to vote, as designated on the reverse side, all ordinary shares, NIS 1.00
nominal value per share (the &#147;ordinary shares&#148;), of the Company held of record
by the undersigned at the close of business on November 28, 2008, at the Annual Meeting of
Shareholders of the Company to be held at the offices of the Company at Ackerstein Towers,
11 Hamenofim St., Tower B, 5<SUP>th</SUP> Floor, Herzliya 46120, Israel, on December 30,
2008, at 11:00 a.m., Israel time (the <B>&#147;Shareholders Meeting&#148;), </B>and any
adjournment(s) thereof. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEN
PROPERLY EXECUTED, THIS PROXY WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE
UNDERSIGNED. IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED &#147;FOR&#148; PROPOSALS
1, 2, 3, 4, 5A and 6A AND &#147;ABSTAIN&#148; WITH RESPECT TO PROPOSAL 7. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
respect to any additional matters as may properly come before the Shareholders Meeting and
any adjournment or postponement thereof, said Proxy will vote in accordance with his best
judgment. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Return
of your proxy does not deprive you of your right to attend the Shareholders Meeting, to
revoke the proxy or to vote your shares in person. All proxy instruments and powers of
attorney must be delivered to the Company no later than 48 hours prior to the Shareholders
Meeting. </FONT></P>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>(Continued, and to be marked,
dated and signed, on the other side)</B> </FONT></P>



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