<SEC-DOCUMENT>0000876779-25-000005.txt : 20250505
<SEC-HEADER>0000876779-25-000005.hdr.sgml : 20250505
<ACCEPTANCE-DATETIME>20250505164442
ACCESSION NUMBER:		0000876779-25-000005
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20250505
FILED AS OF DATE:		20250505
DATE AS OF CHANGE:		20250505

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MAGIC SOFTWARE ENTERPRISES LTD
		CENTRAL INDEX KEY:			0000876779
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		ORGANIZATION NAME:           	06 Technology
		EIN:				330477418
		STATE OF INCORPORATION:			L3
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-19415
		FILM NUMBER:		25913645

	BUSINESS ADDRESS:	
		STREET 1:		YAHADUT CANADA 1 ST.
		CITY:			OR YEHUDA ISRAEL
		STATE:			L3
		ZIP:			6037501
		BUSINESS PHONE:		972-3-538-9474

	MAIL ADDRESS:	
		STREET 1:		YAHADUT CANADA 1 ST.
		CITY:			OR YEHUDA ISRAEL
		STATE:			L3
		ZIP:			6037501
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>ea0240917-6k_magic.htm
<DESCRIPTION>MAGIC ANNOUNCE 2025 AGM ON JUNE 10 2025
<TEXT>
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<P STYLE="text-align: center; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>FORM 6-K</B></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO
RULE 13a-16 OR 15d-16<BR>
UNDER THE SECURITIES EXCHANGE ACT OF 1934</B></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">For the month of <B>May 2025</B></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Commission File Number <B>000-19415</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>MAGIC SOFTWARE ENTERPRISES LTD.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Translation of registrant&rsquo;s name into English)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Terminal Center,&nbsp;1 Yahadut Canada Street,
Or-Yehuda, Israel 6037501</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Address of principal executive office)</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Indicate by check mark whether
the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Form 20-F&nbsp;&#9746;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form
40-F&nbsp;&#9744;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONTENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Notice and Proxy Materials for 2025 Annual
Shareholder Meeting</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Magic Software Enterprises
Ltd. (&ldquo;<B>Magic Software</B>&rdquo; or the &ldquo;<B>Company</B>&rdquo;) hereby publishes notice of its 2025 annual general meeting
of shareholders (the &ldquo;<B>Meeting</B>&rdquo;), which is scheduled to take place at 2:00&nbsp;p.m. (Israel time) on Tuesday, June
10, 2025, at the principal executive offices of the Company, located at Terminal Center,<B>&nbsp;</B>1 Yahadut Canada Street, Or Yehuda
6037501, Israel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Shareholders of record at
the close of business on Monday, May 5, 2025, are entitled to notice of, and to vote at, the Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Attached as&nbsp;<U>Exhibit
99.1</U>&nbsp;to this Report of Foreign Private Issuer on Form 6-K (this &ldquo;<B>Form 6-K</B>&rdquo;) are the Company&rsquo;s notice
and proxy statement for the Meeting, which will be distributed to shareholders as of the record date, and which contains background information
concerning each of the proposals for which the Company will seek approval at the Meeting and further logistical information related to
the Meeting, including required majorities for approval of the proposals and methods for voting. The proxy statement also includes general
information concerning Magic Software&rsquo;s board of directors, corporate governance and significant shareholders, and appends supporting
documentation for one of the proposals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Attached as&nbsp;<U>Exhibit
99.2</U>&nbsp;to this Form 6-K is the form of proxy card that will be distributed to shareholders as of the record date and that may be
used for voting by record shareholders in advance of the Meeting (shareholders holding shares through a bank, broker or other nominee
will instead receive a voting instruction form for submitting their votes).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Exhibits</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The following exhibits are
furnished as part of this Form 6-K:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Exhibit No.</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: justify; border-bottom: Black 1.5pt solid; width: 90%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Description of Exhibit</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">99.1 &nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea024091701ex99-1_magic.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notice and Proxy Statement of 2025 Annual General Meeting of Shareholders of Magic Software Enterprises Ltd. to be held on June 10, 2025</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">99.2 &nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea024091701ex99-2_magic.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Proxy Card for Magic Software Enterprises Ltd. 2025 Annual General Meeting of Shareholders</FONT></A></TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="3"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">MAGIC SOFTWARE ENTERPRISES LTD.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-left: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Registrant)</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By </FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Asaf Berenstin</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 60%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 4%">&nbsp;</TD>
    <TD STYLE="width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name:</FONT>&nbsp;</TD>
    <TD STYLE="width: 31%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Asaf Berenstin</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title: </FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Financial Officer</FONT></TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Date: May 5, 2025</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">2</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<DOCUMENT>
<TYPE>EX-99.1 CHARTER
<SEQUENCE>2
<FILENAME>ea024091701ex99-1_magic.htm
<DESCRIPTION>MAGIC ANNOUNCE 2025 AGM ON JUNE 10 2025
<TEXT>
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<P STYLE="text-align: right; margin: 0"><B>Exhibit 99.1</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><IMG SRC="ex99-1_001.jpg" ALT=""></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MAGIC SOFTWARE ENTERPRISES LTD.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Terminal Center, 1 Yahadut Canada Street, Or Yehuda
6037501, Israel</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTICE OF 2025 ANNUAL GENERAL MEETING OF SHAREHOLDERS<BR>
TO BE HELD ON JUNE 10, 2025</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">May 5, 2025</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Magic Software Enterprises Ltd. Shareholders:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We cordially invite you
to attend the 2025 Annual General Meeting of Shareholders, or the Meeting, of Magic Software Enterprises Ltd., referred to as Magic Software,
the Company, we, us, or our (and similar terms), to be held at 2:00&nbsp;p.m. (Israel time) on Tuesday, June 10, 2025, at our offices
at Terminal Center, 1 Yahadut Canada Street, Or Yehuda 6037501, Israel. At the Meeting, shareholders will be asked to approve the following
proposals, as further detailed in the attached proxy statement:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1. To re-elect Mr. Guy Bernstein,
nominee to the Company&rsquo;s Board of Directors, or the Board, to serve as a director of the Company until the next annual general meeting
of shareholders of the Company or until his earlier resignation, replacement or removal;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2. To re-elect Ms. Naamit
Salomon, nominee to the Board, to serve as a director of the Company until the next annual general meeting of shareholders of the Company
or until her earlier resignation, replacement or removal;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3. To re-elect Mr. Avi Zakay,
nominee to the Board, to serve as a director of the Company until the next annual general meeting of shareholders of the Company or until
his earlier resignation, replacement or removal;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4. To re-elect Mr. Sami Totah,
an independent director and nominee to the Board, to serve as a director on the Board of Directors until the next annual general meeting
of shareholders of the Company or until his earlier resignation, replacement or removal;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5. To re-elect Mr. Ron Ettlinger
to serve as an external director (as such term is defined in the Israeli Companies Law, 5759-1999, or the Israeli Companies Law) on the
Board for a one-year term;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6. To re-elect Mr. Sagi Schliesser
to serve as an external director (as such term is defined in the Israeli Companies Law) on the Board for a one-year term;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">7. To approve the re-appointment
of Ziv Haft Certified Public Accountants, a member firm of BDO International Limited, as our independent registered public accounting
firm for the year ending December 31, 2025 and the additional period until our next annual general meeting of shareholders, and to authorize
the Board and/or its audit committee to fix our accounting firm&rsquo;s compensation; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">8. To approve an updated
Compensation Policy for our directors and officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to the foregoing
proposals, our auditor&rsquo;s report and consolidated financial statements for the year ended December&nbsp;31, 2024 will be reviewed
and discussed at the Meeting. That matter will not involve a vote of our shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.45pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shareholders of record
at the close of business on Monday, May 5, 2025 are entitled to notice of and to vote at the Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Approval of each proposal
to be presented at the Meeting requires the affirmative vote of the holders of a majority of the voting power represented at the Meeting
in person or by proxy and voting on the proposal (excluding abstentions and broker non-votes).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Israeli Companies
Law, the approval of each of Proposals 5, 6 and 8 is also subject to satisfaction of one of the following additional voting requirements:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the majority voted in favor of the proposal must include a
majority of the shares held by non-controlling shareholders who do not have a conflict of interest (referred to in the Israeli Companies
Law as a &ldquo;personal interest&rdquo;) (other than, in the case of each of Proposals 5 and 6, a conflict of interest not derived from
a relationship with a controlling shareholder) in the approval of the proposal that are voted at the Meeting, excluding abstentions;
or</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the total number of shares held by non-controlling, non-conflicted
shareholders (as described in the previous bullet-point) voted against the proposal must not exceed two percent (2%) of the aggregate
voting rights in the Company.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For purposes of the above
special voting requirements, to the best of our knowledge, Formula Systems (1985) Ltd. would be deemed a &ldquo;controlling shareholder&rdquo;
of the Company under the Israeli Companies Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>The Board of Directors
recommends that you vote in favor of all of the proposals, which are described in the attached Proxy Statement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If you are a shareholder
of record, you can vote either by completing and mailing in your proxy card in the enclosed envelope or by attending the Meeting and voting
in person. If voting by mail, the proxy must be received by our transfer agent by 11:59 p.m. Eastern time on Monday June 9, 2025, or at
our registered office at least six hours prior to the time of the Meeting (i.e., 8:00 a.m., Israel time on Tuesday, June 10, 2025) to
be validly included in the tally of ordinary shares voted at the Meeting. If you attend the Meeting, you may vote in person and your proxy
will not be used.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If your ordinary shares
are held beneficially, in &ldquo;street name&rdquo; (i.e., shares that are held through a bank, broker or other nominee on the Nasdaq
Global Select Market in the United States), you may instruct how you want your shares voted. Specific information as to how to provide
your voting instructions is set forth on the enclosed voting instruction form provided by your bank, broker or nominee. As an alternative
to completing and mailing a physical voting instruction form, beneficial shareholders may provide voting instructions online (at&nbsp;<I>www.proxyvote.com</I>),
as indicated on the enclosed voting instruction form. Beneficial owners who hold their ordinary shares through members of the Tel Aviv
Stock Exchange, or TASE, in Israel may vote their shares (i) in person at the Meeting, by presenting a certificate signed by a member
of the TASE which complies with the Israel Companies Regulations (Proof of Ownership for Voting in General Meetings)-2000 as proof of
ownership of the shares, (ii) by sending such a certificate along with a duly executed proxy to the Company at 1 Yahadut Canada Street,
Or Yehuda, 6037501, Israel, Attention: Chief Financial Officer, or via email to: aberenstein@magicsoftware.com,
or (iii) electronically, via the electronic voting system of the Israel Securities Authority.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Detailed proxy voting instructions
are provided both in the proxy statement for the Meeting and on the enclosed proxy card or voting instruction form.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In accordance with the Israeli
Companies Law and the regulations thereunder, any shareholder of the Company holding (i) at least 1% of the outstanding voting rights
of the Company for the Meeting may submit to the Company a proposed additional agenda item for the Meeting, or (ii) holding at least 5%
of the voting rights of the Company for the Meeting may submit to the Company a proposed director candidate to be considered for election
at the Meeting. Any such request should be sent to the Company&rsquo;s offices at Terminal Center, 1 Yahadut Canada Street, Or Yehuda,
6037501, Israel, Attention: Chief Financial Officer, email: ir@magicsoftware.com, no later than Monday, May 12, 2025. To the extent that
there are any additional agenda items or director candidates that the Board determines to add as a result of any such submission, the
Company will publish an updated notice and proxy card with respect to the Meeting, no later than Monday, May 19, 2025, to be furnished
to the Securities and Exchange Commission under cover of a Report of Foreign Private Issuer on Form 6-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By order of the Board,</FONT></TD>
    <TD STYLE="width: 60%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>/s/ </I>Asaf Berenstin</FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Asaf Berenstin</FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Financial Officer</FONT></TD>
    <TD>&nbsp;</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><IMG SRC="ex99-1_001.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MAGIC SOFTWARE ENTERPRISES LTD.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Terminal Center, 1 Yahadut Canada Street, Or Yehuda
6037501, Israel</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">+972-3-538-9305</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROXY STATEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2025 ANNUAL GENERAL MEETING OF SHAREHOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Proxy Statement is being
furnished in connection with the solicitation of proxies on behalf of the Board of Directors, or the Board, of Magic Software Enterprises
Ltd., referred to as Magic Software, the Company, our company, we, or us (and similar terms), to be voted at the 2025 Annual General Meeting
of Shareholders of Magic Software, or the Meeting, and at any adjournment thereof, pursuant to the accompanying Notice of 2025 Annual
General Meeting of Shareholders. The Meeting will be held at 2:00&nbsp;p.m. (Israel time) on Tuesday, June 10, 2025, at our principal
executive offices at Terminal Center, 1&nbsp;Yahadut Canada Street, Or Yehuda 6037501, Israel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Proxy Statement, the
attached Notice of 2025 Annual General Meeting of Shareholders and the enclosed proxy card or voting instruction form are being distributed
to shareholders on or about May 12, 2025.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Purposes of the Annual General Meeting</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0.25in">At the Meeting, shareholders
will be asked to vote upon the following matters:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1. To re-elect Mr. Guy Bernstein,
nominee to the Board, to serve as a director of the Company until the next annual general meeting of shareholders of the Company or until
his earlier resignation, replacement or removal;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2. To re-elect Ms. Naamit
Salomon, nominee to the Board, to serve as a director of the Company until the next annual general meeting of shareholders of the Company
or until her earlier resignation, replacement or removal;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3. To re-elect Mr. Avi Zakay,
nominee to the Board, to serve as a director of the Company until the next annual general meeting of shareholders of the Company or until
his earlier resignation, replacement or removal;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4. To re-elect Mr. Sami Totah,
an independent director, to serve as a director of the Company until the next annual general meeting of shareholders of the Company or
until his earlier resignation, replacement or removal;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5. To re-elect Mr. Ron Ettlinger
to serve as an external director (as such term is defined in the Israeli Companies Law, 5759-1999, or the Israeli Companies Law) on the
Board for a one-year term;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6. To re-elect Mr. Sagi Schliesser
to serve as an external director (as such term is defined in the Israeli Companies Law) on the Board for a one-year term; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">7. To approve the
re-appointment of Ziv Haft Certified Public Accountants, a member firm of BDO International Limited, or BDO Israel, as our independent
registered public accounting firm for the year ending December 31, 2025 and the additional period until our next annual general meeting
of shareholders, and to authorize the Board and/or its audit committee to fix our accounting firm&rsquo;s compensation; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 0.5in">8. To approve an updated
Compensation Policy for our directors and officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, our auditor&rsquo;s
report and consolidated financial statements for the year ended December&nbsp;31, 2024 will be reviewed and discussed at the Meeting.
That matter will not involve a vote of our shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Recommendation of the Board </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Our Board unanimously
recommends a vote FOR re-election of each of the nominees listed in this Proxy Statement and FOR each of the other proposals set forth
in this Proxy Statement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Proxy Procedure</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Only holders of record of
our ordinary shares, par value NIS 0.1 per share, or ordinary shares, as of the close of business on Monday, May 5, 2025 are entitled
to notice of, and to vote in person or by proxy at, the Meeting. As of May 1, 2025, there were 49,099,305 outstanding ordinary shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Voting in Person.&nbsp;</I></B>If your shares are registered directly in your name with our transfer agent (i.e., you are a &ldquo;registered shareholder&rdquo;), you may attend and vote in person at the Meeting. Please bring some form of valid identification. If you are a beneficial owner of shares registered in the name of your broker, bank, trustee or nominee (i.e., your shares are held in &ldquo;street name&rdquo;) on the Nasdaq Global Select Market, or Nasdaq, in the United States, you are also invited to attend the Meeting; however, to vote in person at the Meeting as a beneficial owner, you must first obtain a &ldquo;legal proxy&rdquo; from your broker, bank, trustee or other nominee authorizing you to do so, as well as a statement from the nominee showing your beneficial ownership of ordinary shares. If you hold your ordinary shares beneficially through a member of the Tel Aviv Stock Exchange, or TASE, in Israel and wish to vote your shares in person at the Meeting, you will need to present a certificate signed by a member of the TASE which complies with the Israel Companies Regulations (Proof of Ownership for Voting in General Meetings)-2000 as proof of ownership of the shares, &nbsp;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Voting by Mail. </I></B>You may submit your proxy by mail by completing, signing and mailing the enclosed proxy card in the enclosed, postage-paid envelope, or, for shares held in street name, by completing, signing and submitting the enclosed voting instruction form to your broker, bank, trustee or nominee in accordance with the directions provided to you. If you submit a proxy card or voting instruction form but do not vote or provide voting instructions, your shares will be voted &ldquo;FOR&rdquo; each of the proposals at the Meeting.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -0.25in"><B><I>&nbsp;</I></B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 24px; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&#9679;</I></B></FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Voting Electronically. </I></B>Shareholders in &ldquo;street name&rdquo; whose shares are held through members of the TASE may also vote their shares electronically via the electronic voting system of the Israel Securities Authority, which vote shall be cast no later than Tuesday, June 10, 2025 at 8:00&nbsp;a.m. Israeli time (six&nbsp;hours before the Meeting time). You may receive guidance on the use of the electronic voting system from the TASE member through which you hold your shares. Shareholders holding in &ldquo;street name&rdquo; on Nasdaq should be able to provide voting instructions online at www.proxyvote.com by using the control number and following the directions provided to them by their broker, bank, trustee or other nominee.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If you are a registered shareholder
and are voting via a proxy card, the proxy card must be received either by our transfer agent by 11:59 pm Eastern time on Monday, June
9, 2025 or by our company at our registered office in Israel at least six hours prior to the designated time for the Meeting (that is,
by 8:00 a.m. (Israel time) on Tuesday, June 10, 2025) in order for your ordinary shares to be validly included in the tally of shares
voted at the Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Change or Revocation of Proxy</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If you are a registered shareholder,
you may change your vote at any time prior to the exercise of authority granted in the proxy by delivering a written notice of revocation
to our Corporate Secretary, by granting a new proxy bearing a later date, or by attending the Meeting and voting in person. Attendance
at the Meeting will not cause your previously granted proxy to be revoked unless you specifically so request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If your shares are held in
&ldquo;street name&rdquo; on Nasdaq, you may change your vote by submitting new voting instructions to your broker, bank, trustee or nominee
or, if you have obtained a legal proxy from your broker, bank, trustee or nominee giving you the right to vote your shares, by attending
the Meeting and voting in person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If your shares are held through
a member of the TASE, you may change your vote in the same manner in which you originally submitted it until Tuesday, June 10, 2025 at
8:00&nbsp;a.m. Israeli time (six&nbsp;hours before the Meeting time).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Quorum</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A quorum of shareholders
is necessary to transact business at the Meeting. The presence of two shareholders, holding at least 25% of our voting rights, represented
in person or by proxy at the Meeting, will constitute a quorum. If there is not a legal quorum within half an hour of the scheduled time
of the Meeting, the Meeting will be adjourned to the same&nbsp;day in the following week at the same time and place or to any other time
and place as the chairman of the board of directors may determine with the consent of a majority of the voting power represented at the
Meeting, in person or by proxy, and voting on the question of adjournment. At the reconvened Meeting, the presence of at least two shareholders
represented in person or by proxy, will constitute a quorum. The notice accompanying this Proxy Statement shall serve as notice of such
reconvened meeting if no quorum is present at the original date and time; no further notice of the reconvened meeting will be given to
shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Abstentions and broker non-votes
will be counted towards the quorum. Generally, a broker non-vote occurs when voting instructions have been provided by a beneficial holder
to his, her or its broker with respect to certain proposals but not with respect to other proposal(s) and&nbsp;the broker lacks discretionary
voting power to vote such shares with respect to those other proposal(s) because such proposals are not considered &ldquo;routine&rdquo;
proposals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Unsigned or unreturned proxies,
including those not returned by banks, brokers, or other record holders, will not be counted for quorum or voting purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Majority Vote Standard</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each ordinary share entitles
the holder to one vote. An affirmative vote of the holders of a majority of the ordinary shares represented at the Meeting, in person
or by proxy, entitled to vote and voting thereon, is required to approve each of the proposals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, approval of
each of Proposals 5, 6, and 8 requires satisfaction of one of the following additional voting requirements:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the majority voted in favor of the proposal must include a
majority of the shares held by non-controlling shareholders who do not have a conflict of interest (referred to in the Israeli Companies
Law as a &ldquo;personal interest&rdquo;) (other than, in the case of each of Proposals 5 and 6, a conflict of interest not derived from
a relationship with a controlling shareholder) in the approval of the proposal that are voted at the Meeting, excluding abstentions;
or</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the total number of shares held by non-controlling, non-conflicted
shareholders (as described in the previous bullet-point) voted against the proposal must not exceed two percent (2%) of the aggregate
voting rights in the Company.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Israeli Companies
Law, a &ldquo;controlling shareholder&rdquo; is any shareholder that has the ability to direct a company&rsquo;s activities (other than
by means of being a director or other office holder of the company). A shareholder is presumed to be a controlling shareholder if the
shareholder holds 50% or more of the voting rights in a company or has the right to appoint a majority of the directors of the company
or its chief executive officer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For purposes of the above
special voting requirements, to the best of our knowledge, Formula Systems (1985) Ltd., or Formula Systems, which holds approximately
46.71% of our issued and outstanding ordinary shares, would be deemed a &ldquo;controlling shareholder&rdquo; of the Company under the
Israeli Companies Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A &ldquo;personal interest&rdquo;
of a shareholder under the Companies Law: (i) includes an interest of such shareholder or any member of the shareholder&rsquo;s immediate
family (i.e., spouse, sibling, parent, parent&rsquo;s parent, descendent, the spouse&rsquo;s descendent, sibling or parent, and the spouse
of any of those) or an interest of an entity 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 its voting rights 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 of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A controlling shareholder
and a shareholder that possesses a personal interest are qualified to participate in the vote on Proposals 5, 6 and 8, and will be counted
towards or against the ordinary majority required for approval of the proposal; however, the vote of any such shareholder will not be
counted towards or against the special majority requirement described in the first bullet point above or towards the 2% threshold described
in the second bullet point above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Israeli Companies
Law, any shareholder participating in the vote on Proposals 5, 6 or 8 must inform our Company before the vote whether or not such shareholder
is a controlling shareholder or has a conflict of interest in the approval of Proposals 5, 6 or 8, and failure to do so disqualifies the
shareholder from participating in the vote on Proposals 5, 6 or 8 (as applicable).<B>&nbsp;</B>In keeping with the leniency provided by
the Companies Regulations - Relief for Companies whose Securities are Listed for Trading on a Foreign Exchange 2000-5760,&nbsp;<B>if you
vote by means of the enclosed proxy card or voting instruction form, online at&nbsp;</B><B>www.proxy.com</B><B><U>,
or </U>via the electronic voting system of the Israel Securities Authority, you will be deemed to be confirming to our company that you
are not a controlling shareholder and that you lack a conflict of interest in the approval of Proposals 5, 6 and/or 8 (as applicable),
and your vote or voting instruction (as applicable) will be counted towards or against the special majority required for the approval
of such proposal</B>(s).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>If you believe that you,
or a related party of yours, is a controlling shareholder or has such a conflict of interest and you wish to participate in the vote for
or against Proposals 5, 6 or 8, you should not vote by means of the enclosed proxy card or voting instruction form, online at&nbsp;www.proxy.com,&nbsp;or
via the electronic voting system of the Israel Securities Authority, with respect to the relevant proposal, and you should instead contact
our Chief Financial Officer, Mr. Asaf Berenstin, at aberenstein@magicsoftware.com, who will instruct you how to submit your vote or voting
instructions on the relevant proposal(s).&nbsp;</B>If you submit your vote in that alternative manner as instructed, your vote will be
counted towards or against the ordinary majority required for the approval of Proposals 5, 6 and/or 8 (as applicable), but will not be
counted towards or against the special majority required for approval of that/those proposal(s).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In tabulating the voting
results for any particular proposal, shares that constitute broker non-votes and abstentions are not considered votes cast on that proposal.
Thus, broker non-votes will not affect the outcome of any of the matters being voted on at the Meeting. Unsigned or unreturned proxies,
including those not returned by banks, brokers, or other record holders, will not be counted for voting purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have received indications
from our principal shareholder, Formula Systems that it presently intends to vote for all of the nominees for director and in favor of
each of the other proposals to be acted upon at the Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Cost of Soliciting Votes for the Meeting</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We will bear the cost of
soliciting proxies from our shareholders. Proxies will be solicited by mail and may also be solicited in person, by telephone or electronic
communication, by our directors, officers and employees. We will reimburse brokerage houses and other custodians, nominees and fiduciaries
for their expenses in accordance with the regulations of the Securities and Exchange Commission, or the SEC, concerning the sending of
proxies and proxy material to the beneficial owners of our shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Voting Results of the Annual General Meeting</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We will publish the final
results of the votes on the proposals at the Meeting in a Report of Foreign Private Issuer on Form&nbsp;6-K, or Form 6-K, furnished to
the SEC promptly following the Meeting. You may obtain a copy of that Form&nbsp;6-K by reviewing our SEC filings through the SEC&rsquo;s
EDGAR filing system at&nbsp;<I>www.sec.gov</I>, through the Tel-Aviv Stock Exchange filing system at&nbsp;<I>www.tase.co.il</I>, or through
the Israeli Securities Authority filing system at&nbsp;<I>http://www.magna.isa.gov.il/</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Security
Ownership of Certain Beneficial Owners and Management</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table sets
forth certain information as of March 31, 2025 regarding the beneficial ownership by (i)&nbsp;all shareholders known to us to beneficially
own 5% or more of our outstanding ordinary shares, (ii)&nbsp;each director and executive officer; and (iii)&nbsp;all directors and executive
officers as a group:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; font-weight: bold">Name</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Number of <BR> Ordinary <BR> Shares <BR> Beneficially <BR> Owned<SUP>(1)</SUP></B></FONT></TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Percentage&nbsp;of<BR> Ownership<SUP>(2)</SUP></B></FONT></TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Formula Systems (1985)&nbsp;Ltd. <SUP>(3)</SUP></FONT></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">22,933,809</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">46.71</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Harel Insurance Investments &amp; Financial Services Ltd. <SUP>(4)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,656,178</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11.52</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Clal Insurance Enterprises Holdings Ltd <SUP>(5)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,420,060</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.97</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Guy Bernstein</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">150,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Asaf Berenstin</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">38,225</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Ron Ettlinger</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Naamit Salomon</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Sagi Schliesser</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Avi Zakay</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Arik Kilman</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Arik Faingold</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Yakov Tsaroya</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Hanan Shahaf</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Yuval Baruch</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">All directors and executive officers as a group (12 persons)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">190,725</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Less than 1%</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Beneficial ownership is determined in accordance with the rules of the SEC, and generally includes voting or investment power with respect to ordinary shares. Ordinary shares underlying options or restricted share units (RSUs) currently exercisable/vesting or exercisable or vesting within 60&nbsp;days of March 31, 2025 are deemed beneficially owned by the relevant holder of those options or RSUs and are deemed outstanding for computing the percentage beneficial ownership of the person holding such options or RSUs but are not deemed outstanding for computing the percentage of any other person. Except as indicated by footnote, and subject to community property laws where applicable, the persons named in the table above have sole voting and investment power with respect to all ordinary shares shown as beneficially owned by them.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The percentages shown are based on 49,099,305 ordinary shares issued and outstanding as of March 31, 2025.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Based on Amendment No. 19 to Schedule 13D filed by Formula Systems (1985) Ltd., or Formula Systems, with the SEC on May 23, 2022. Asseco Poland S.A., or Asseco, holds 3,958,154 ordinary shares, representing 25.82% of the outstanding ordinary shares, of Formula Systems, as reported in Asseco&rsquo;s Amendment No. 5 to its beneficial ownership statement on Schedule 13D filed with the SEC on December 7, 2022. Asseco may therefore be deemed to be the indirect beneficial owner of the aggregate 22,933,809 ordinary shares of our company held directly by Formula Systems. The address of Formula Systems is 1 Yahadut Canada Street, Or-Yehuda, Israel. The address of Asseco is&nbsp;35-322 Rzeszow, ul.Olchowa 14, Poland.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The beneficial ownership presented herein is based on written notification received by our company from Harel Insurance Investments &amp; Financial Services Ltd., or Harel Insurance, on April 2, 2025. Harel Insurance is a publicly held Israeli corporation. All the 5,656,178 ordinary shares beneficially owned by Harel Insurance are held for members of the public through, among others, provident funds and/or mutual funds and/or pension funds and/or insurance policies and/or exchange traded funds, which are managed by subsidiaries of Harel Insurance, each of which subsidiaries operates under independent management and makes independent voting and investment decisions.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The beneficial ownership presented herein is based on written notification received from Clal Insurance Enterprises Holdings Ltd., or Clal, on April 1, 2025. Clal is a publicly held Israeli corporation. All 3,420,060 ordinary shares beneficially owned by Clal are held for members of the public through, among others, provident funds and/or mutual funds and/or pension funds and/or insurance policies and/or exchange traded funds, which are managed by subsidiaries of Clal, each of which subsidiaries operates under independent management and makes independent voting and investment decisions.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>ADDITIONAL INFORMATION REGARDING OUR BOARD,
CORPORATE GOVERNANCE </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>AND COMPENSATION OF OUR OFFICERS AND DIRECTORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Item 6.B of our Annual Report
on Form 20-F for the year ended December 31, 2024, or the 2024 Form 20-F, will contain information regarding compensation paid to our
directors and certain officers (including our five most highly compensated officers) in, or with respect to, the year ended December 31,
2024. Item 6.C of our 2024 Form 20-F will contain additional information regarding our Board, its committees and our corporate governance
practices. We encourage you to review those items of our 2024 Form 20-F&mdash; which we incorporate by reference herein&mdash; to obtain
additional information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROPOSALS 1, 2 AND 3 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>RE-ELECTION OF ORDINARY DIRECTORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Background</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our articles of association
provide for a board of directors consisting of such number of directors as is determined from time to time by our annual general meeting
of shareholders, but in any case not less than three and no more than 11&nbsp;directors. Our Board is currently composed of four ordinary/non-external
directors, and two external directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to our articles
of association, our directors who are not external directors are elected at our annual general meetings of shareholders, which are required
to be held at least once during every calendar year and not more than 15&nbsp;months after the last preceding meeting. Except for our
external directors (as described below), our directors are elected by a vote of the holders of a majority of the voting power represented
and voting at such meeting and hold office until the next annual general meeting of shareholders following the annual meeting at which
they were elected. Directors (other than external directors) may be removed earlier from office by resolution passed at a general meeting
of our shareholders. Our Board may temporarily fill vacancies on the Board until the next annual general meeting of shareholders, provided
that the total number of directors does not exceed the maximum number permitted under our articles of association.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are exempt from the Nasdaq
Listing Rules requirement regarding the process for the nomination of directors; instead, we follow Israeli law and practice in accordance
with which directors are nominated by the board of directors and elected by the shareholders, unless otherwise provided in a company&rsquo;s
articles of association. Our articles of association do not provide otherwise. Our practice has been that our director nominees are presented
in our&nbsp;proxy statement&nbsp;for election at our annual general meetings of shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At the Meeting, shareholders
are being asked to elect four directors who are not external directors (three incumbent directors proposed for re-election under Proposals
1, 2 and 3, and another, independent incumbent director under Proposal 4), to hold office until our next annual general meeting of shareholders.
All of the nominees for re-election pursuant to Proposals 1, 2, 3, consisting of Mr.&nbsp;Guy Bernstein, Ms. Naamit Salomon and Mr.&nbsp;Avi
Zakay, are current directors who were elected to serve in such capacity by our shareholders at our 2024 Annual and Special General Meeting
of Shareholders held on July 31, 2024.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As required by Israeli law,
each of the director nominees named above has declared in writing that: (i)&nbsp;he or she possesses the requisite skills and expertise,
as well as sufficient time, to perform his/her duties as a director of our company; (ii)&nbsp;he or she has not been convicted by a conclusive
judgment for one of the following offenses less than five&nbsp;years prior to the date of the declaration: (a)&nbsp;an offense under Sections
290 to 297, 392, 415, 418 to 420 and 422-428 of the Penal Law,&nbsp;5737-1977, or under Sections 52C, 52D, 53(a)&nbsp;or 54 of the Israeli
Securities Law,&nbsp;5728-1968; (b)&nbsp;by a court outside Israel for bribery, deceit, an offense by a manager of a corporate body or
an offense involving misuse of inside information; and (c)&nbsp;for any other offense in respect of which a court holds that, due to the
substance, gravity or circumstances of such offense, such person is not fit to serve as director in a public company; (iii)&nbsp;he or
she is not subject to a court or committee decision in an administrative enforcement proceeding pursuant to Section&nbsp;226A of the Israeli
Companies Law, that prohibits him or her from serving as a director; and (iv)&nbsp;he or she has not been declared bankrupt or incompetent.
Such declarations are available for review at our registered office.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If re-elected at the Meeting,
we will pay each of Ms. Salomon and Mr.&nbsp;Zakay compensation in the amount equal to the amount paid to our external directors, as provided
in the regulations adopted under the Israeli Companies Law. Mr.&nbsp;Bernstein does not receive any compensation for his role as a director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Set forth below is information
about each nominee, including age, position(s)&nbsp;held with our company, principal occupation, business history and other directorships
held.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Guy Bernstein (57)</I>&nbsp;has
served as our chief executive officer since April&nbsp;2010 and has served as a director of our company since January&nbsp;2007 and served
as the chairman of our Board from April&nbsp;2008 to April&nbsp;2010. Mr.&nbsp;Bernstein has served as the chief executive officer of
Formula Systems, our parent company, since January&nbsp;2008. From December&nbsp;2006 to November&nbsp;2010, Mr.&nbsp;Bernstein served
as a director and the chief executive officer of Emblaze Ltd. or Emblaze, our former controlling shareholder. Mr.&nbsp;Bernstein also
serves as the chairman of the board of directors of Sapiens International Corporation N.V., or Sapiens, and is the chairman of the board
of directors of Matrix IT Ltd., both of which are subsidiaries of Formula Systems. From April&nbsp;2004 to December&nbsp;2006, Mr.&nbsp;Bernstein
served as the chief financial officer of Emblaze and he has served as a director of Emblaze since April&nbsp;2004. Prior to that and from
1999, Mr.&nbsp;Bernstein served as our chief financial and operations officer. Prior to joining our company, Mr.&nbsp;Bernstein was senior
manager at Kost Forer Gabbay&nbsp;&amp; Kasierer, a member of Ernst&amp; Young Global, from 1994 to 1997. Mr.&nbsp;Bernstein holds a B.A.
degree in accounting and economics from College of Management Academic Studies and is a certified public accountant (CPA) in Israel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Naamit Salomon (59)&nbsp;</I>has
served as director of our company since March&nbsp;2003. Since January&nbsp;2010, Ms.&nbsp;Salomon has served as a partner in an investment
company. Ms. Salomon also serves as a director of Sapiens, which is part of the Formula group. Ms. Salomon served as the chief financial
officer of Formula Systems from August&nbsp;1997 until December&nbsp;2009. From 1990 through August&nbsp;1997, Ms. Salomon served as the
controller of two large privately held companies in the Formula group. Ms. Salomon holds a B.A. degree in Economics and Business Administration
from Ben Gurion University and an LL.M. degree from Bar-Ilan University.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Avi Zakay (46)</I>&nbsp;has
served as director of our company since February&nbsp;2018. Mr.&nbsp;Zakay has been the sales manager of the Volkswagen dealership and
showroom in Rishon Letzion (Champion Motors) since 2014. In 2013, he served as the sales manager of the showroom of Mitsubishi&nbsp;Motors
in Netanya, and from 2007 to 2013, he served as a sales manager of BMW and Mercedes-Benz in Tel Aviv. Mr.&nbsp;Zakay holds a B.A. degree
in Business Administration and studied for an M.B.A. degree, both from Michlala Le-minhal&nbsp;College in&nbsp;Tel-Aviv.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For details about beneficial
ownership of our shares held by any of these nominees, see the section above titled &ldquo;Security Ownership of Certain Beneficial Owners
and Management.&rdquo; We are not aware of any reason why any of these nominees, if elected, would be unable or unwilling to serve as
a director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Proposed Resolutions</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 42.55pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">It is proposed that at the Meeting,
the following resolutions be adopted pursuant to Proposals 1, 2 and 3, respectively:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 42.55pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&ldquo;RESOLVED, that the re-election
of Mr. Guy Bernstein as a director of the Company, to serve until our next annual general meeting of shareholders, or until his earlier
resignation, replacement or removal, be, and hereby is, approved in all respects.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&ldquo;RESOLVED, that the re-election
of Ms. Naamit Salomon as a director of the Company, to serve until our next annual general meeting of shareholders, or until her earlier
resignation, replacement or removal, be, and hereby is, approved in all respects.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&ldquo;RESOLVED, that the re-election
of Mr. Avi Zakay as a director of the Company, to serve until our next annual general meeting of shareholders, or until his earlier resignation,
replacement or removal, be, and hereby is, approved in all respects.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Required Vote</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Israeli Companies
Law, the affirmative vote of the holders of a majority of the ordinary shares represented at the Meeting, in person or by proxy, entitled
to vote and voting on the matter (excluding abstentions and broker non-votes), is required to re-elect as directors each of the nominees
named above.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Board Recommendation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0.25in"><B>The Board recommends a
vote &ldquo;FOR&rdquo; the re-election of each of the nominees named above as an ordinary director.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>PROPOSAL 4</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>RE-ELECTION OF INDEPENDENT DIRECTOR</B></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Background</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As described in the &ldquo;<I>Background</I>&rdquo;
to Proposals 1, 2 and 3, our articles of association provide for a board of directors consisting of such number of directors as is determined
from time to time by a general meeting of shareholders, but in any case not less than three and no more than 11&nbsp;directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Besides the three ordinary
directors who have been nominated by the Board for re-election pursuant to Proposals 1 through 3, Mr. Sami Totah, who was elected as an
&ldquo;independent director&rdquo; by our shareholders at our 2024 annual and special general meeting of shareholders held on July 31,
2024, has been nominated by the Board for re-election in that same capacity at the Meeting. In the period of time leading up to the date
of this Proxy Statement, our Board once again confirmed that Mr. Totah qualifies as a &ldquo;non-affiliated&rdquo; director, as defined
under the Israeli Companies Law, and as an &ldquo;independent director&rdquo; under the Nasdaq Listing Rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At the Meeting, shareholders
are being asked to re-elect Mr. Sami Totah pursuant to this Proposal 4, to hold office until our next annual general meeting of shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As required by Israeli law,
Mr. Sami Totah has declared in writing that: (i)&nbsp;he possesses the requisite skills and expertise, as well as sufficient time, to
perform his duties as a director of our company; (ii)&nbsp;he has not been convicted by a conclusive judgment for one of the following
offenses less than five&nbsp;years prior to the date of the declaration: (a)&nbsp;an offense under Sections 290 to 297, 392, 415, 418
to 420 and 422-428 of the Penal Law,&nbsp;5737-1977, or under Sections 52C, 52D, 53(a)&nbsp;or 54 of the Israeli Securities Law,&nbsp;5728-1968;
(b)&nbsp;by a court outside Israel for bribery, deceit, an offense by a manager of a corporate body or an offense involving misuse of
inside information; and (c)&nbsp;for any other offense in respect of which a court holds that, due to the substance, gravity or circumstances
of such offense, he is not fit to serve as director in a public company; (iii)&nbsp;he is not subject to a court or committee decision
in an administrative enforcement proceeding pursuant to Section&nbsp;226A of the Israeli Companies Law, that prohibits him from serving
as a director; and (iv)&nbsp;he has not been declared bankrupt or incompetent. Such declaration is available for review at our registered
office.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If re-elected at the Meeting,
we will pay Mr. Sami Totah compensation in the amount equal to the amount paid to our external directors, as provided in the regulations
adopted under the Israeli Companies Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Biographical information
for Mr. Totah is set forth immediately below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Sami Totah (68) </I></B><FONT STYLE="background-color: #F7FBFF">has
been a General Partner at Viola Growth, </FONT>a private equity firm investing in the hi-tech arena, for the last 15 years. He is a seasoned
executive with over 25 years of international management leadership in the IT industry. He has extensive knowledge and execution experience
in overseeing very large IT projects, and has built an extensive global network with customers, partners, investors and executives. From
2002 to 2008, he served as an active chairman in several leading startup companies, defining long-term strategy and assisting in company
scale-up. He has served <FONT STYLE="background-color: #F7FBFF">as a board member in ECtel (NASDAQ: ECTX) and Pilat Media (AIM: PGB)</FONT>.
Mr. Totah formerly served <FONT STYLE="background-color: white">as Senior Vice President of Operations (COO) at Amdocs (NYSE:DOX), Israel&rsquo;s
largest software company.</FONT>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Proposed Resolution</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 42.55pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0.25in">It is proposed that at the
Meeting, the following resolution be adopted pursuant to Proposal 4:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 42.55pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&ldquo;RESOLVED, that the re-election
of Mr. Sami Totah as an independent director of the Company, to serve until our next annual general meeting of shareholders, or until
his earlier resignation, replacement or removal, be, and hereby is, approved in all respects.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I></I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Required Vote</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Israeli Companies
Law, the affirmative vote of the holders of a majority of the ordinary shares represented at the Meeting, in person or by proxy, entitled
to vote and voting on the matter (excluding abstentions and broker non-votes), is required to re-elect Mr. Sami Totah as an independent
director.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Board Recommendation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0.25in"><B>The Board recommends a
vote &ldquo;FOR&rdquo; the re-election of Mr. Sami Totah as an independent director.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>PROPOSAL 5 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>RE-ELECTION OF EXTERNAL DIRECTORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Background</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Israeli Companies
Law, companies incorporated under the laws of the State of Israel that are &ldquo;public companies&rdquo; and that have a controlling
shareholder&rdquo; (such as our company, for which Formula Systems is deemed a controlling shareholder) are required to appoint at least
two external directors who meet the qualification requirements in the Israeli Companies Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Israeli Companies Law
provides that a person is not qualified to be appointed as an external director if (i) the person is a relative of a controlling shareholder
of the company, or (ii) if that person or his or her relative, partner, employer, another person to whom he or she was directly or indirectly
subordinate, or any entity under the person&rsquo;s control, has or had, during the two years preceding the date of appointment as an
external director: (a) any affiliation or other disqualifying relationship with the company, with any person or entity controlling the
company or a relative of such person, or with any entity controlled by or under common control with the company; or (b) in the case of
a company with no shareholder holding 25% or more of its voting rights, had at the date of appointment as an external director, any affiliation
or other disqualifying relationship with a person then serving as chairman of the board or chief executive officer, a holder of 5% or
more of the issued share capital or voting power in the company or the most senior financial officer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The term &ldquo;relative&rdquo;
is defined in the Israeli Companies Law as a spouse, sibling, parent, grandparent or descendant; spouse&rsquo;s sibling, parent or descendant;
and the spouse of each of the foregoing persons.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Israeli Companies
Law, the term &ldquo;affiliation&rdquo; and the similar types of disqualifying relationships include (subject to certain exceptions):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an employment relationship;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a business or
    professional relationship even if not maintained on a regular basis (excluding insignificant relationships);</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">control; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">service as an office holder, excluding service as a director in a private company prior to the initial public offering of its shares if such director was appointed as a director of the private company in order to serve as an external director following the initial public offering.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The term &ldquo;office holder&rdquo;
is defined in the Israeli Companies Law as a general manager (i.e., chief executive officer), chief business manager, deputy general manager,
vice general manager, any other person assuming the responsibilities of any of these positions regardless of that person&rsquo;s title,
a director and any other manager directly subordinate to the general manager.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, no person may
serve as an external director if that person&rsquo;s position or professional or other activities create, or may create, a conflict of
interest with that person&rsquo;s responsibilities as a director or otherwise interfere with that person&rsquo;s ability to serve as an
external director or if the person is an employee of the Israel Securities Authority or an Israeli stock exchange. A person may furthermore
not continue to serve as an external director if he or she received direct or indirect compensation from the company including amounts
paid pursuant to indemnification or exculpation contracts or commitments and insurance coverage for his or her service as an external
director, other than as permitted by the Israeli Companies Law and the regulations promulgated thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">According to the Israeli Companies
Law and regulations promulgated thereunder, a person may be appointed as an external director only if he or she has professional qualifications
or if he or she has accounting and financial expertise (each, as defined below). A director with accounting and financial expertise is
a director who, due to his or her education, experience and skills, possesses an expertise in, and an understanding of, financial and
accounting matters and financial statements, such that he or she is able to understand the financial statements of the company and initiate
a discussion about the presentation of financial data. A director is deemed to have professional qualifications if he or she has any of
(i) an academic degree in economics, business management, accounting, law or public administration, (ii) an academic degree or has completed
another form of higher education in the primary field of business of the company or in a field which is relevant to his/her position in
the company or (iii) at least five years of experience serving in one of the following capacities, or at least five years of cumulative
experience serving in two or more of the following capacities: (a) a senior business management position in a company with a significant
volume of business, (b) a senior position in the company&rsquo;s primary field of business or (c) a senior position in public administration
or service. The board of directors is charged with determining whether a director possesses financial and accounting expertise or professional
qualifications.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The initial term of an external
director is three years. Thereafter, an external director may be reelected by shareholders to serve in that capacity for up to two additional
three-year terms, provided that either: (i) his or her service for each such additional term is recommended by one or more shareholders
holding at least 1% of the company&rsquo;s voting rights and is approved at a shareholders meeting by a disinterested majority, where
the total number of shares held by non-controlling, disinterested shareholders voting for such reelection exceeds 2% of the aggregate
voting rights in the company, subject to additional restrictions set forth in the Israeli Companies Law with respect to affiliations of
external director nominee; or (ii) his or her service for each such additional term is recommended by the board of directors and is approved
at a meeting of shareholders by the same majority required for the initial election of an external director (as described above).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The term of office for external
directors for Israeli companies traded on certain foreign stock exchanges, including Nasdaq, may be extended indefinitely in increments
of up to an additional three years per term, in each case, provided that the audit committee and the board of directors of the company
confirm that, in light of the external director&rsquo;s expertise and special contribution to the work of the board of directors and its
committees, the reelection for such additional period(s) is beneficial to the company, and provided that the external director is reelected
subject to the same shareholder vote requirements (as described above regarding the reelection of external directors). Prior to the approval
of the reelection of the external director at a general meeting of shareholders, the company&rsquo;s shareholders must be informed of
the term previously served by him or her and of the reasons why the board of directors and audit committee recommended the extension of
his or her term.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The current terms of each
of our two existing external directors&mdash;Mr. Ron Ettlinger and Mr. Sagi Schliesser&mdash;will expire at the Meeting. As previously
approved at our annual general meeting held in May 2024, Mr. Ettlinger&rsquo;s third three-year term, which had expired prior to that
meeting, was extended for an additional one-year period, which now expires at the Meeting. Mr. Schliesser&rsquo;s third three-year term
will expire at the Meeting in accordance with its original schedule. In keeping with the above-described leniency applicable to a company
whose shares are traded in the United States, each of our audit committee and our Board has determined, during the period preceding the
calling of the Meeting, that, in light of Mr. Ettlinger&rsquo;s and Mr. Schliesser&rsquo;s expertise and significant contributions to
the work of our Board and its committees, their reelection for an additional one-year period is beneficial to the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">More particularly, our audit
committee and Board (in each case, without the participation of Mr. Ettlinger and Mr. Schliesser) have determined that both Mr. Ettlinger
and Mr. Schliesser have shown over the course of their three previous terms of three years each a deep understanding of our business in
each of its spheres, including: (i) <FONT STYLE="background-color: white">software services and Information Technologies, or IT, outsourcing
software services; (ii) proprietary application development and business process integration platforms; (iii) selected packaged vertical
software solutions; and (iv) cloud-based services for end to end digital transformation. </FONT>Mr. Ettlinger and Mr. Schliesser are both
familiar with the goals and challenges that we face in our target markets. The Board expressed the view that Mr. Ettlinger and Mr. Schliesser
have furthermore been solid contributors to the dynamics within the Board and its committees, successfully filling the role of external
directors in oversight of our management team in an independent, value-adding manner. Each of the audit committee and the Board believes
that an additional term of one year is an appropriate duration of time to commit to Mr. Ettlinger&rsquo;s and Mr. Schliesser&rsquo;s continued
service on the Board and its committees at the current stage of their service, after prior service of ten and nine years total, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to noting the
foregoing considerations, each of the audit committee and the Board has furthermore expressed the view that in light of the current prospective
merger transaction (announced by the Company in March 2025) whereby the Company may potentially merge into Matrix I.T. (TASE: MTRX), Israel&rsquo;s
leading IT services company, it is important to maintain continuity among the independent and external directors of the Company. In particular,
the prospective transaction would be deemed a transaction with our controlling shareholder, Formula Systems, under the Israeli Companies
Law, thereby necessitating special approvals by the audit committee, the independent members of the Board, and our shareholders. In light
of the ongoing process of the negotiation of that transaction, our audit committee and Board have concluded that any change to the identity
of our independent and external directors at this stage of the process would unnecessarily disrupt and delay the consideration of that
transaction by the Board&rsquo;s independent members.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Given the above conclusions
of the audit committee and the Board, the Board has nominated Mr. Ron Ettlinger and Mr. Sagi Schliesser for re-election for an additional
one-year term, until our next annual general meeting of shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Biographical information for
Mr. Ettlinger and Mr. Schliesser is set forth below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Ron Ettlinger (57),
</I></B><FONT STYLE="background-color: white">has served as an external director of our company since December 2014 and is a member of
the audit and compensation committees of our Board. Mr. Ettlinger is the founder and has been the chief executive officer of &ldquo;Nippon
Europe Israel Ltd.,&rdquo; a leading provider of car multimedia advanced systems, since October 2000. Prior to that, Mr. Ettlinger was
the owner and general manager of Universal Ltd., a car service. Mr. Ettlinger is the founder and since July 2014 has served as chief executive
officer of Nippon Lights Ltd., a leading provider of LED lights and panels. Mr. Ettlinger holds a B.A. degree in Business, with a major
in finance and marketing from the Tel-Aviv College of Management.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Sagi Schliesser (52)
</I></B><FONT STYLE="background-color: white">has served as an external director of our company since November 2015 and is a member of
our audit committee. Mr. Schliesser has been the co-founder and chief executive officer of TabTale, a creator of innovative games, interactive
books and educational apps since 2010. Prior to founding TabTale, Mr. Schliesser was the CTO of Sapiens International Corporation (NASDAQ
and TASE: SPNS), managing Sapiens Technologies. Previously Mr. Schliesser served for seven years as VP of R&amp;D and CTO of IDIT Technologies
Ltd., a global provider of insurance software solutions. Before that Mr. Schliesser was one of the founders of WWCOM, a B2B enablement
software startup. Mr. Schliesser holds a B.Sc. degree with honors in Computer Science and Psychology from Tel Aviv University, as well
as a Master&rsquo;s degree in Computer Science from the Interdisciplinary Center in Herzliya and an M.B.A. degree with honors in Business
Psychology from Hamaslool Ha&rsquo;akademi Shel Hamichlala Leminhal.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If re-elected, both Mr. Ettlinger
and Mr. Schliesser will continue to serve on the audit and compensation committees of the Board, as required under the Israeli Companies
Law for an external director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Subject to the re-election
of Mr. Ettlinger and Mr. Schliesser as external directors, they will continue to be entitled to cash compensation in accordance with the
regulations under the Israeli Companies Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company has received a
statement from each of Mr. Ettlinger and Mr. Schliesser in which he declares that he meets all of the requirements applicable to external
directors as set forth in the Israeli Companies Law. The Board has also determined that each of Mr. Ettlinger and Mr. Schliesser satisfies
the requirements to be considered an independent director under the Nasdaq Listing Rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I></I></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Proposed Resolutions</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are proposing to adopt
the following resolutions pursuant to Proposals 5 and 6, respectively, at the Meeting:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;RESOLVED, that Mr.
Ron Ettlinger be, and hereby is, re-elected as an External Director of the Company for a one-year term, until the Company&rsquo;s 2026
annual general meeting of shareholders, in accordance with the requirements of the Israeli Companies Law.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;RESOLVED, that Mr.
Sagi Schliesser be, and hereby is, re-elected as an External Director of the Company for a one-year term, until the Company&rsquo;s 2026
annual general meeting of shareholders, in accordance with the requirements of the Israeli Companies Law.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Required Vote</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The vote required for approval
of each of Proposals 5 and 6 is the affirmative vote of the holders of a majority of the voting power present in person or represented
by proxy at the Meeting and voting on such proposal (excluding abstentions and broker non-votes).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, under the Companies
Law, re-election of an external director requires that either of the following two voting conditions be met as part of the approval by
a majority of shares present and voting thereon:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the majority voted in favor of the proposal includes a majority of the shares held by shareholders who are not controlling shareholders and do not have a conflict of interest, referred to under the Israeli Companies Law as a &ldquo;personal interest&rdquo; (except for a personal interest that does not arise from a relationship with a controlling shareholder) in the approval of the proposal that are voted at the Meeting, excluding abstentions; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the total number of shares held by non-controlling, non-conflicted shareholders (as described in the previous bullet-point) voted against the proposal must not exceed 2% of the aggregate voting power in the Company.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Please see <B>&ldquo;</B><I>Majority
Vote Standard</I>&rdquo; above in this Proxy Statement for an explanation as to the definitions of &ldquo;controlling shareholder&rdquo;
and &ldquo;personal interest&rdquo; under the Israeli Companies Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under Israeli law,
every voting shareholder is required to notify the Company whether such shareholder possesses a &ldquo;personal interest&rdquo;
(except for a personal interest that does not arise from a relationship with a controlling shareholder) in the approval of Proposals
5 and 6, or is a controlling shareholder. In keeping with the leniency provided by the Companies Regulations - Relief for Companies
whose Securities are Listed for Trading on a Foreign Exchange 2000-5760,&nbsp;<B>if you vote by means of the enclosed proxy card or
voting instruction form, online at www.proxy.com<FONT STYLE="text-decoration: none">, or </FONT>via the electronic voting system of
the Israel Securities Authority, you will be deemed to be confirming to our company that you are not a controlling shareholder and
that you lack a conflict of interest in the approval of Proposals 5 and/or 6 (as applicable), and your vote or voting instruction
(as applicable) will be counted towards or against the special majority required for the approval of each such proposal</B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>If you believe that you,
or a related party of yours, is a controlling shareholder or has such a conflict of interest and you wish to participate in the vote for
or against Proposals 5 or 6, you should not vote by means of the enclosed proxy card or voting instruction form, online at&nbsp;www.proxy.com,&nbsp;or
via the electronic voting system of the Israel Securities Authority, with respect to the relevant proposal, and you should instead contact
our Chief Financial Officer, Mr. Asaf Berenstin, at aberenstein@magicsoftware.com, who will instruct you how to submit your vote or voting
instructions on the relevant proposal(s).&nbsp;</B>If you submit your vote in that alternative manner as instructed, your vote will be
counted towards or against the ordinary majority required for the approval of Proposals 5 and/or 6 (as applicable), but will not be counted
towards or against the special majority required for approval of that/those proposal(s).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 28.35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Board Recommendation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>The Board recommends a
vote &ldquo;FOR&rdquo; the re-election of each of Mr. Ron Ettlinger and Mr. Sagi <FONT STYLE="background-color: white">Schliesser</FONT>
as an external director of the Company for an additional one-year term pursuant to Proposals 5 and 6, respectively.</B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 28.35pt"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 28.35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>PROPOSAL 7 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>RE-APPOINTMENT OF INDEPENDENT AUDITOR AND APPROVAL
OF ITS ANNUAL REMUNERATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Background</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Israeli Companies
Law, a company&rsquo;s independent auditor is responsible for auditing, and giving an opinion on, the company&rsquo;s annual financial
statements. The Israeli Companies Law states that the independent auditor must be appointed by the shareholders at a general meeting of
shareholders. Usually, at each annual general meeting of shareholders, the shareholders vote whether to re-appoint the auditor to audit
the annual financial statements and to serve for a term that extends until the following annual general meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At the Meeting, and upon the
recommendation of the audit committee of the Board, our shareholders will be asked to approve the re-appointment of Ziv Haft Certified
Public Accountants, a member firm of BDO International Limited, which we refer to as BDO Israel, as our independent registered public
accounting firm for the year ending December 31, 2025 and the additional period until our next annual general meeting of shareholders,
pursuant to the recommendation of our audit committee and Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">BDO Israel was initially appointed
by our shareholders as our independent auditor at our annual and special general meeting of shareholders held on July 31, 2024. BDO Israel
has no relationship with us or any of our subsidiaries or affiliates except as independent registered public accountants and, from time
to time and to a limited extent, as tax consultants and providers of some audit-related services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our audit committee and Board
believe that BDO Israel&rsquo;s expertise, capabilities, and qualifications are proportionate to the size, nature of activity, and scope
of our operations, and appropriate for treating the risks inherent in our activities. BDO Israel is therefore well-qualified to be re-appointed
as our independent auditor for the year ending December 31, 2025 and the additional period until our next annual general meeting of shareholders.
&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In accordance with applicable
law and our articles of association, our Board has delegated to our audit committee the authority to determine the remuneration of BDO
Israel based on the volume and nature of its services. At the Meeting, our shareholders will be asked to authorize the Board and, based
on that delegation, the audit committee, to determine that remuneration in accordance with the volume and nature of BDO Israel&rsquo;s
services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Auditor Fees in Last Two Fiscal Years</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We paid the following fees
for professional services rendered by our previous independent auditor, Kost Forer Gabbay &amp; Kasierer, Certified Public Accountant,
a member firm of Ernst &amp; Young Global, independent registered public accounting firm (which we refer to as EY Israel), which was our
independent registered public accounting firm until July 31, 2024 and for the year ended December 31, 2023, respectively:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Ended<BR> December&nbsp;31,</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2024</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center">(US dollars)</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Services Rendered</TD><TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-indent: -9pt; padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Audit <SUP>(1)</SUP></FONT></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">629,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">27,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Tax and other <SUP>(2)</SUP></FONT></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">210,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">99,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Total</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">839,000</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">126,000</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The audit fees for the years ended December 31, 2023 and 2024 were for professional services rendered for: the audits of our annual consolidated financial statements; agreed-upon procedures related to the review of our consolidated quarterly information; statutory audits of Magic Software and its subsidiaries; issuance of comfort letters and consents; and assistance with review of documents furnished to, or filed with, the SEC. </FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Tax and other fees for the years ended December 31, 2023, and 2024 were for services related to tax compliance, including the preparation of tax returns and claims for refund, and tax advice. </FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We also paid the following
fees for professional services rendered by BDO Israel to the Company for the year ended December 31, 2024:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">Year Ended<BR> December&nbsp;31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">(US dollars)</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Services Rendered</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; width: 88%; text-indent: -9pt; padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Audit <SUP>(1)</SUP></FONT></TD><TD STYLE="padding-bottom: 1.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">527,000</TD><TD STYLE="padding-bottom: 1.5pt; width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Total</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">527,000</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The audit fees for the year ended December 31, 2024 were for professional services rendered for: the audit of our annual consolidated financial statements; agreed-upon procedures related to the review of our consolidated quarterly information; statutory audits of Magic Software and its subsidiaries.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Proposed Resolution</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">It is proposed that the following
resolution be adopted at the Meeting:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;RESOLVED, that the
re-appointment of Ziv Haft Certified Public Accountants, a member firm of BDO International Limited, as the independent auditor of Magic
Software for the year ending December 31, 2025 and the additional period until the next annual general meeting of shareholders of Magic
Software be, and hereby is, approved, and the Board (upon recommendation of the audit committee) and/or the audit committee (subject to
ratification of the Board) be, and hereby is, authorized to fix the remuneration of such independent auditor in accordance with the volume
and nature of its services.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Required Vote</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The affirmative vote of
the holders of a simple majority of the voting power represented at the Meeting in person or by proxy and voting on this matter is necessary
for the re-appointment of BDO Israel as our independent auditor and the authorization of the Board and/or the audit committee to fix BDO
Israel&rsquo;s remuneration.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Board Recommendation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.45pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>The Board unanimously
recommends that shareholders vote &ldquo;FOR&rdquo; the re-appointment of BDO Israel as our independent auditor for the year ending December
31, 2025 and the additional period until our next annual general meeting of shareholders, as well as the authorization of the Board and/or
the audit committee to fix its remuneration, pursuant to Proposal 7.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.45pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.45pt"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.45pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>PROPOSAL 8 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>APPROVAL OF UPDATED COMPENSATION POLICY FOR
OUR DIRECTORS AND OFFICERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.4in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><B><I>Background</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">Under
the Israeli Companies Law, a public company must adopt a compensation policy, recommended by the compensation committee and approved by
the board of directors and the shareholders, in that order. In general, all office holders&rsquo; (as defined in the &ldquo;<I>Background</I>&rdquo;
to Proposals 5 and 6) terms of compensation&mdash; including fixed remuneration, bonuses, equity compensation, retirement or termination
payments, indemnification, liability insurance and the grant of an exemption from liability&mdash; must comply with a company&rsquo;s compensation
policy, or else be approved by a special majority of a company&rsquo;s shareholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">In
addition, even if complying with the terms of the then-current compensation policy, the compensation terms of directors, the chief executive
officer, and any employee or service provider who is considered a controlling shareholder, generally must be approved separately by the
compensation committee, the board of directors and the shareholders of the company by a special majority), in that order.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">The
compensation terms of other officers require the approval of the compensation committee and the board of directors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">The
compensation policy must comply with specified criteria and guidelines and, in general, will be determined, among others, according to
the following factors: (i) promoting the company&rsquo;s objectives, business plan and long term policy; (ii) creating appropriate incentives
for the company&rsquo;s office holders, considering, among others, the company&rsquo;s risk management policy; (iii) the company&rsquo;s size and nature
of operations; and (iv) with respect to variable elements of compensation, the office holder&rsquo;s contribution to achieving corporate objectives
and increasing profits, with a long-term view and in accordance with the office holder&rsquo;s position.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">A
compensation policy must be re-approved once every three years. The board of directors is required to reevaluate the compensation policy
from time to time, and upon any material change to the circumstances that existed at the time of its formulation. Our most recently adopted
compensation policy was approved by our 2020 annual general meeting of shareholders held on February 25, 2021, in accordance with the
provisions of Section 267A(c) of the Israeli Companies Law.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">Our
Board of Directors has approved, following the recommendation of the compensation committee of the Board, an updated version of our Compensation
Policy for Executive Officers and Directors, or the Compensation Policy, which is attached in marked form&mdash;marked against our most
recent compensation policy&mdash; to this Proxy Statement as&nbsp;<B><U>Exhibit A.</U></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">In
approving the Compensation Policy, our compensation committee and Board considered various factors, including, among others, the factors
set forth in the Israeli Companies Law, and reviewed various data and information they deemed relevant, with the advice and assistance
of legal and compensation advisors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">At
the Meeting, shareholders will be asked to approve the Compensation Policy, in the form attached to this Proxy Statement as&nbsp;<B><U>Exhibit
A.</U></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><B><I>Proposed Resolution</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">At
the Meeting, the following resolution is proposed to be adopted pursuant to Proposal 8:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">&ldquo;RESOLVED,
that the Compensation Policy attached as&nbsp;<U>Exhibit A</U> to the Company&rsquo;s Proxy Statement for the 2025 Annual General Meeting
of Shareholders of the Company, be, and hereby is, approved and adopted.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><B><I>Vote Required</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">The
approval of the Compensation Policy requires the affirmative vote of the holders of a majority of the voting power in the Company present,
in person or by proxy, and voting on the matter, provided that one of the following two additional conditions is met: </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">(i)</TD><TD STYLE="text-align: justify"><FONT>at least a majority
of the shares of non-controlling shareholders and shareholders who do not have a personal interest in the approval of the Compensation
Policy voted at the Meeting vote in favor of the approval of the Compensation Policy; or</FONT></TD>
</TR></TABLE>



<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">(ii)</TD><TD STYLE="text-align: justify"><FONT>the total number of
shares among the shareholders described in clause (i) above voted against the approval of the Compensation Policy does not exceed 2%
of the aggregate voting rights in the Company.</FONT></TD>
</TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Please see <B>&ldquo;</B><I>Majority
Vote Standard</I>&rdquo; above in this Proxy Statement for an explanation as to the definitions of &ldquo;controlling shareholder&rdquo;
and &ldquo;personal interest&rdquo; under the Israeli Companies Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under Israeli law, every
voting shareholder is required to notify the Company whether such shareholder possesses a &ldquo;personal interest&rdquo; in the approval
of Proposal 8 or is a controlling shareholder. In keeping with the leniency provided by the Companies Regulations - Relief for Companies
whose Securities are Listed for Trading on a Foreign Exchange 2000-5760,&nbsp;<B>if you vote by means of the enclosed proxy card or voting
instruction form, online at&nbsp;</B><B>www.proxy.com</B><B><U STYLE="text-decoration: none">, or </U>via the electronic voting system
of the Israel Securities Authority, you will be deemed to be confirming to our company that you are not a controlling shareholder and
that you lack a conflict of interest in the approval of Proposal 8, and your vote or voting instruction (as applicable) will be counted
towards or against the special majority required for the approval of this proposal</B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>If you believe that you,
or a related party of yours, is a controlling shareholder or has such a conflict of interest and you wish to participate in the vote for
or against Proposal 8, you should not vote by means of the enclosed proxy card or voting instruction form, online at&nbsp;www.proxy.com,&nbsp;or
via the electronic voting system of the Israel Securities Authority, with respect to this proposal, and you should instead contact our
Chief Financial Officer, Mr. Asaf Berenstin, at aberenstein@magicsoftware.com, who will instruct you how to submit your vote or voting
instructions on this proposal.&nbsp;</B>If you submit your vote in that alternative manner as instructed, your vote will be counted towards
or against the ordinary majority required for the approval of Proposal 8, but will not be counted towards or against the special majority
required for approval of this proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Board Recommendation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.45pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>The Board unanimously
recommends that shareholders vote &ldquo;FOR&rdquo; the approval of the Company&rsquo;s Compensation Policy, in the form attached as Exhibit
A to the Proxy Statement for the Meeting, pursuant to Proposal 8 at the Meeting.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>REVIEW AND DISCUSSION
OF AUDITOR&rsquo;S REPORT AND<BR>
CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At the Meeting, our auditor&rsquo;s
report and consolidated financial statements for the year ended December&nbsp;31, 2024 will be presented. We will hold a discussion with
respect to the financial statements at the Meeting. This item will not involve a vote of the shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The 2024 Form 20-F, including
the auditor&rsquo;s report and our audited consolidated financial statements for the year ended December&nbsp;31, 2024, which will be
filed with the SEC prior to the date of the Meeting, will be available on our website at <I>www.magicsoftware.com</I> or through the EDGAR
website of the SEC at <I>www.sec.gov</I>. Shareholders may receive a hard copy of the annual report on Form&nbsp;20-F containing the consolidated
financial statements free of charge upon request. None of the auditor&rsquo;s report, consolidated financial statements, the Form&nbsp;20-F
or the contents of our website form part of the proxy solicitation material.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By Order of the Board of Directors,</FONT></TD>
    <TD STYLE="width: 60%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Asaf Berenstin</FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Asaf Berenstin</FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Financial Officer</FONT></TD>
    <TD>&nbsp;</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Dated: May 5, 2025</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Exhibit A</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>Magic Software
Enterprises Ltd.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>Compensation
Policy for Office Holders</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;<FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt"></FONT></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>




<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><B>A.</B></TD><TD STYLE="text-align: justify"><B><U>Background and Basic Principles for the Compensation
Policy</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><B>1.</B></TD><TD STYLE="text-align: justify"><B><U>Introduction</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in">1.1</TD><TD STYLE="text-align: justify">The purpose of the Compensation Policy is to define, describe and specify Magic Software Enterprises Ltd.&rsquo;s
(&ldquo;<B>Magic</B>&rdquo; or the &ldquo;<B>Company</B>&rdquo;) overall compensation strategy for <FONT STYLE="color: blue"><U>the Company&rsquo;s
</U></FONT>&ldquo;Office Holders&rdquo;, as defined in the Companies Law <FONT STYLE="color: blue"><U>(</U></FONT>as defined below<FONT STYLE="color: red"><STRIKE>,</STRIKE></FONT><FONT STYLE="color: blue"><U>)</U></FONT>
(collectively, the &ldquo;<B>Office Holders</B><FONT STYLE="color: red"><STRIKE>&rdquo;)</STRIKE></FONT><FONT STYLE="color: blue"><U>&rdquo;),</U></FONT>
and to provide guidelines for setting compensation of <FONT STYLE="color: red"><STRIKE>its</STRIKE></FONT><FONT STYLE="color: blue"><U>the
Company&rsquo;s</U></FONT> Office Holders. The terms of the Compensation Policy of the Company and its approval are subject to the provisions
of Section 267A of the Companies Law - 1999 (the &ldquo;<B>Companies Law</B>&rdquo;).</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in">1.2</TD><TD STYLE="text-align: justify">The adoption of this Compensation Policy does not and will not entitle any Office Holder of the Company
to receive any elements of compensation described herein. The elements of compensation to which an Office Holder will be entitled will
be exclusively those that are determined specifically in relation to him or her in accordance with the requirements of the Companies Law
and the regulations promulgated thereunder and specifically approved by the authorized corporate organs of the Company, i.e., the CEO,
the Compensation Committee, the Board of Directors and/or the General Meeting of Shareholders, as applicable (the &ldquo;<B>Authorized
Corporate Organs</B><FONT STYLE="color: red"><STRIKE>&rdquo;.)</STRIKE></FONT><FONT STYLE="color: blue"><U>&rdquo;).</U></FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">1.3</TD><TD STYLE="text-align: justify">In case of an Office Holder receiving compensation that is
lower than the compensation that may be provided under this policy, this shall not be deemed to be a deviation or an exception from this
Compensation Policy, and such terms of employment will not require the approval of the General Meeting of Shareholders (which may be
required with respect to approval of terms that deviate from this Compensation Policy).</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">1.4</TD><TD STYLE="text-align: justify">In the event that the compensation to be paid to any Office
Holder pursuant to the Compensation Policy in a given year exceeds, by less than ten percent (10%), the applicable percentage or amount
otherwise stated herein as an annual limit for such Office Holder, this Compensation Policy will be deemed amended for the mere sake
of increasing the applicable compensation limit for such Office Holder, so that the compensation to be paid will not be deemed a deviation
from the terms of this Compensation Policy.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 35.45pt"><FONT STYLE="font-size: 10pt"><B>2.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><B><U>The Adoption of the Compensation Policy; Approval of Particular Compensation
and </U><FONT STYLE="color: red"><U><STRIKE>changes thereto</STRIKE></U></FONT><FONT STYLE="color: blue"><U>Changes Thereto</U></FONT></B></FONT><U>:</U></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in">2.1</TD><TD STYLE="text-align: justify">This Compensation Policy has been approved by the Compensation Committee <FONT STYLE="color: red"><STRIKE>of
the Board of Directors of the Company on January 12, 2021</STRIKE></FONT><FONT STYLE="color: blue"><U>on</U></FONT> and by the Company&rsquo;s
<FONT STYLE="color: red"><STRIKE>board</STRIKE></FONT><FONT STYLE="color: blue"><U>Board</U></FONT> of <FONT STYLE="color: red"><STRIKE>directors</STRIKE></FONT><FONT STYLE="color: blue"><U>Directors</U></FONT>
on <FONT STYLE="color: red"><STRIKE>January 12, 2021</STRIKE></FONT><FONT STYLE="color: blue"><U>May 5, 2025</U></FONT> and by the general
meeting of the Company&rsquo;s shareholders on <FONT STYLE="color: red"><STRIKE>February 25, 2021</STRIKE></FONT><FONT STYLE="color: blue"><U>[________]</U></FONT>
and it shall replace the Compensation Policy for Office Holders approved by the <FONT STYLE="color: red"><STRIKE>Compensation Committee
of the Board of Directors of the Company and by the Board of Directors</STRIKE></FONT><FONT STYLE="color: blue"><U>general meeting of
the shareholders</U></FONT> of the Company on <FONT STYLE="color: red"><STRIKE>January 17, 2018 for the first time and on February 28,
2018 after it was rejected by the General Meeting of the Shareholders of the Company held on February 28, 2018</STRIKE></FONT><FONT STYLE="color: blue"><U>February
25, 2021</U></FONT>, subject to the provisions of Section 267A(c) of the Companies Law.</TD></TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"></P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">2.2</TD><TD STYLE="text-align: justify">The provisions and implementation of this Compensation Policy
are subject to Magic&rsquo;s Articles of Association and any applicable law in any territory in which Magic operates and that affects
the provisions of this Compensation Policy. The Compensation Policy constitutes Magic&rsquo;s Executive Officers Compensation Policy
as defined in section 267a (a) of the Companies Law, and as required by the Companies Law (Amendment No. 20)-2012, and will govern and
set the guidelines for the compensation plans for all Office Holders. The Compensation Policy may be ratified from time to time in accordance
with the dates stipulated in Section 267A(d) of the Companies Law.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="text-align: left; width: 0.25in">2.3</TD><TD STYLE="text-align: justify">Without limiting the foregoing, the Compensation Committee
and the Board of Directors shall review the Compensation Policy, from time to time, and monitor its implementation, and may recommend
to the Board and shareholders to amend the Compensation Policy as <FONT STYLE="color: red"><STRIKE>it deems</STRIKE></FONT><FONT STYLE="color: blue"><U>they
deem</U></FONT> necessary from time to time.</TD>
</TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; color: red; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="text-align: left; width: 0.25in"><STRIKE>2.4</STRIKE></TD><TD STYLE="text-align: justify"><STRIKE>The provisions and implementation of this Compensation
Policy shall apply to any compensation determined after the date of approval of the Compensation Policy by the General Meeting of Shareholders.
Existing agreements with Office Holders signed before the date of approval of this Compensation Policy will be reviewed from time to
time and, should it be found that they differ materially from the provisions of this Compensation Policy, the Company will examine the
possibility of amending them in accordance with the circumstances of the matter.</STRIKE></TD>
</TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="text-align: left; width: 0.25in"><FONT STYLE="color: red"><STRIKE>2.5</STRIKE></FONT><TD STYLE="text-align: justify"></TD>
</TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="color: blue"><U>2.4</U></FONT></TD><TD STYLE="text-align: justify">Office Holders of the Company will be entitled to the compensation
components detailed in this Compensation Policy only after the granting thereof is duly approved by the Authorized Corporate Organs in
accordance with any applicable law.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><B>3.</B></TD><TD STYLE="text-align: justify"><B><U>Principles of the Compensation Policy and its Purposes</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">3.1</TD><TD STYLE="text-align: justify">Magic&rsquo;s goals in setting the Compensation Policy for
the Office Holders are to attract, motivate and retain highly experienced personnel who will contribute to Magic&rsquo;s growth and success
in the future and enhance shareholder value.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">3.2</TD><TD STYLE="text-align: justify">The Compensation Policy is designed to offer Office Holders
a compensation package that is competitive with other companies in our industry and to preserve talented personnel in senior management
positions in the Company, while taking into consideration market data of peer companies.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><B>4.</B></TD><TD STYLE="text-align: justify"><B><U>Components of Office Holder Compensation</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0pt">The compensation
of an Office Holder may include any of the following components:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">4.1</TD><TD STYLE="text-align: justify">Fixed Cash Compensation (the &ldquo;<B>Fixed Cash Compensation
Component</B>&rdquo;)-</TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.6in"></TD><TD STYLE="width: 0.35in; text-align: left">4.1.1</TD><TD STYLE="text-align: justify">Fixed Cash Compensation (or base salary) - the Fixed Cash
Compensation Component is intended to compensate the Office Holder for the time he or she invests in executing his or her current duties
and tasks in the Company.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.6in"></TD><TD STYLE="width: 0.35in; text-align: left">4.1.2</TD><TD STYLE="text-align: justify">In exceptional circumstances - fixed payment for a fixed
period and conditional on continued employment, for the retention of the Office Holder.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.6in"></TD><TD STYLE="width: 0.35in; text-align: left">4.1.3</TD><TD STYLE="text-align: justify">Various additional related benefits and perquisites - these
additional related benefits and perquisites, arising in part from the provisions of the law (for example, provisions for social welfare
benefits such as pension fund and life and disability insurance, vacation days, sick leave, convalescence pay, etc.), in part are customary
to office holders in similar positions (for example, contributions to an education fund) and in part are intended to compensate the employee
for expenses incurred by him or her in fulfilling such duties (for example, car expenses, mobile phone, parking, subscriptions to relevant
literature, certain membership fees, travel expenses per diem etc.).</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">4.2</TD><TD STYLE="text-align: justify">Variable Compensation Component - this component is intended
to create a link between the performance of the Company and the performance of its Office Holders.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.6in"></TD><TD STYLE="width: 0.35in">4.2.1</TD><TD STYLE="text-align: justify">Variable Cash Compensation Component - this component for <FONT STYLE="color: red"><STRIKE>office holders</STRIKE></FONT><FONT STYLE="color: blue"><U>Office
Holders</U></FONT> other than directors is aimed to compensate and incentivize <FONT STYLE="color: red"><STRIKE>the</STRIKE></FONT><FONT STYLE="color: blue"><U>an</U></FONT>
Office Holder for his or her achievements and his or her contribution for obtaining the goals of the Company and its work program during
the course of the period for which it is paid. The Variable Cash Compensation Component may include an annual bonus, a Management by Objectives
(MBO), Objective Target Bonus (OTB) and Sales Commission or other similar bonuses as applicable to each Office Holder (the &ldquo;<B>Variable
Cash Compensation Component</B>&rdquo;). The Company believes that the weight of this component out of the overall compensation package
of <FONT STYLE="color: red"><STRIKE>the</STRIKE></FONT><FONT STYLE="color: blue"><U>an</U></FONT> Office Holder should be substantive
so that it clearly links between the performance of the Office Holder and his <FONT STYLE="color: blue"><U>or her </U></FONT>contribution
<FONT STYLE="color: red"><STRIKE>to the Company</STRIKE></FONT> to the performance of the Company, in a manner that will allow him or
her to benefit from the financial success of the Company in the long term, and <I>vice versa</I>.</TD></TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.6in"></TD><TD STYLE="width: 0.35in">4.2.2</TD><TD STYLE="text-align: justify">Equity Based Compensation Component &ndash; this component is aimed to align compensation of the Office
Holders with the long term goals of Magic and with creating and increasing shareholder value (as reflected in the market price of the
Company&rsquo;s shares<FONT STYLE="color: blue"><U>,</U></FONT> which are traded on both <FONT STYLE="color: blue"><U>the </U></FONT>Tel
Aviv Stock Exchange and <FONT STYLE="color: red"><STRIKE>the</STRIKE></FONT> NASDAQ).This compensation creates a uniformity of interests
between the shareholders of the Company and its Office Holders, assists in retaining Office Holders holding key positions in the Company
and in maintaining their motivation<FONT STYLE="color: blue"><U>,</U></FONT> and constitutes a useful risk management tool for the Company.</TD></TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><B>5.</B></TD><TD STYLE="text-align: justify"><B><U>Office Holders of the Company</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 35.45pt">5.1</TD><TD STYLE="text-align: justify">This <FONT STYLE="color: red"><STRIKE>compensation</STRIKE></FONT><FONT STYLE="color: blue"><U>Compensation</U></FONT>
Policy shall apply to the Company&rsquo;s &ldquo;Office Holders&rdquo; as such term is defined by the Companies Law.</TD></TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">6.</TD><TD STYLE="text-align: justify"><B><U>The Ratio between the Variable Components and the Fixed
Components</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">6.1</TD><TD STYLE="text-align: justify">At the time of the approval of the compensation of the Office
Holders, the Authorized Corporate Organs of the Company will examine, among other factors, the entire compensation package in order to
guarantee that the various components create the correct balance of benefits for the relevant Office Holder.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">6.2</TD><TD STYLE="text-align: justify">The weight of the
                                            variable components (the Variable Cash Compensation Component and the Equity Based Compensation
                                            Component) (the <B>&ldquo;Variable Components&rdquo;</B>) out of the total compensation amount
                                            which is to be granted for any year will not be greater than 2/3 (or 67%)<SUP>1</SUP> (two
                                            thirds or sixty-seven percent) for each Office Holder and may vary from one Office Holder
                                            to the other.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 35.45pt"><B>7.</B></TD><TD STYLE="text-align: justify"><FONT STYLE="color: red"><B><U><STRIKE>Ratio between the Terms of Tenure and </STRIKE></U></B></FONT><B><U>Employment
of the Office </U><FONT STYLE="color: red"><U><STRIKE>Holder</STRIKE></U></FONT><FONT STYLE="color: blue"><U>Holders</U></FONT><U> and
</U><FONT STYLE="color: red"><U><STRIKE>the Salaries of other</STRIKE></U></FONT><FONT STYLE="color: blue"><U>Their Relationship to Other</U></FONT><U>
Company Employees</U></B></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 35.45pt">7.1</TD><TD STYLE="text-align: justify">In setting the terms of the Compensation Policy, the Company aims to compensate its Office Holders for
their contribution to its business success over time, taking into account the extensive responsibility and authority imposed upon them.
The Compensation Committee and the Board have examined the ratio between the terms of service and employment of Office Holders and the
average and median cost of employment of the other Company employees and contractors<FONT STYLE="color: red"><STRIKE>. As of the date
of the approval of the Compensation Policy, the Average and Median ratios are as follows:</STRIKE></FONT> <FONT STYLE="color: blue"><U>and
finds the ratio appropriate and reasonable, taking into account each of the following factors: </U></FONT></TD></TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.6in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="color: blue"><U>(i)</U></FONT></TD><TD STYLE="text-align: justify">the gap between the responsibility and contribution of Office
Holders to the Company&rsquo;s results <FONT STYLE="color: red"><STRIKE>to those of </STRIKE></FONT><FONT STYLE="color: blue"><U>,
on the one hand, and the corresponding responsibility and contribution of </U></FONT>other employees of the Company, <FONT STYLE="color: blue"><U>on
the other hand;</U></FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.6in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="color: blue"><U>(ii)</U></FONT></TD><TD STYLE="text-align: justify">the nature of the Company, <FONT STYLE="color: blue"><U>and
</U></FONT>its size, value, <FONT STYLE="color: blue"><U>and </U></FONT>scale of activity in <FONT STYLE="color: red"><STRIKE>the </STRIKE></FONT>various
fields<FONT STYLE="color: red"><STRIKE>, </STRIKE></FONT><FONT STYLE="color: blue"><U>;</U></FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.6in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="color: blue"><U>(iii)</U></FONT></TD><TD STYLE="text-align: justify">the fact that the Office Holders, insofar as quantities are
concerned, represent a small part &#9;of the total work force of the Company group<FONT STYLE="color: red"><STRIKE>, </STRIKE></FONT><FONT STYLE="color: blue"><U>;</U></FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.6in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="color: blue"><U>(iv)</U></FONT></TD><TD STYLE="text-align: justify">the mixture of manpower and <FONT STYLE="color: red"><STRIKE>its
</STRIKE></FONT><FONT STYLE="color: blue"><U>the Company&rsquo;s </U></FONT>field of activity<FONT STYLE="color: blue"><U>;</U></FONT>
and <FONT STYLE="color: red"><STRIKE>that it</STRIKE></FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.6in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="color: blue"><U>(v)</U></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: blue"><U>the ratio</U></FONT> does not
adversely impact labor relations within the Company. <FONT STYLE="color: blue"><U>an</U></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt; color: blue">&nbsp;</P>

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<TD STYLE="width: 0.25in; text-align: left"><B>B.</B></TD><TD STYLE="text-align: justify"><B><U>Fixed Cash Compensation</U></B></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><B>8.</B></TD><TD STYLE="text-align: justify"><B><U>Guidelines for Determining the Fixed Cash Compensation
Component, its Examination and Updating</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in">8.1</TD><TD STYLE="text-align: justify">The Fixed Cash Compensation Component will vary among Office Holders and will be individually determined
according to <FONT STYLE="color: red"><STRIKE>the</STRIKE></FONT><FONT STYLE="color: blue"><U>an</U></FONT> Office Holder&rsquo;s respective
performance, educational background, prior business experiences, seniority, aptitude, qualifications, role and responsibility and previous
salary agreements signed with the Office Holder. At the time of determining the fixed fee, an examination will also be made of <FONT STYLE="color: red"><STRIKE>the
office holder&rsquo;s</STRIKE></FONT><FONT STYLE="color: blue"><U>an Office Holder&rsquo;s</U></FONT> education, skills, expertise, professional experience,
and achievements.</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">8.1</TD><TD STYLE="text-align: justify">The Fixed Cash Compensation Component will vary among Office
Holders and will be individually determined according to an Office Holder&rsquo;s respective performance, educational background, prior
business experiences, seniority, aptitude, qualifications, role and responsibility and previous salary agreements signed with the Office
Holder. At the time of determining the fixed fee, an examination will also be made of an Office Holder&rsquo;s education, skills, expertise,
professional experience, and achievements.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in">8.2</TD><TD STYLE="text-align: justify">The fixed fee, in terms of the gross salary of the Office Holders <FONT STYLE="color: red"><STRIKE>in
the Company</STRIKE></FONT>, will not be greater than the amounts detailed below:<FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>2</SUP></FONT></TD></TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Rank</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>Maximum<FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>3</SUP></FONT></B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">CEO</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt; color: red"><STRIKE>NIS150</STRIKE></FONT><FONT STYLE="font-size: 10pt; color: blue"><U>NIS160</U></FONT><FONT STYLE="font-size: 10pt">,000</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">CEO or President of a Substantive Subsidiary in Israel, Division Manger</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt; color: red"><STRIKE>NIS120</STRIKE></FONT><FONT STYLE="font-size: 10pt; color: blue"><U>NIS125</U></FONT><FONT STYLE="font-size: 10pt">,000</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="color: red; text-decoration: line-through; text-align: justify">CFO, Senior Vice President</TD><TD STYLE="color: Red">&nbsp;</TD>
    <TD STYLE="color: Red; text-align: left">&nbsp;</TD><TD STYLE="color: red; text-decoration: line-through; text-align: right"><FONT STYLE="font-size: 10pt; color: red"><STRIKE>NIS80,000</STRIKE></FONT></TD><TD STYLE="color: red; text-decoration: line-through; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Other Officeholders</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt; color: red"><STRIKE>NIS75</STRIKE></FONT><FONT STYLE="font-size: 10pt; color: blue"><U>NIS100</U></FONT><FONT STYLE="font-size: 10pt">,000</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: justify">CEO of a Substantive Subsidiary Overseas</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right"><STRIKE><FONT STYLE="font-size: 10pt; color: red">35</FONT></STRIKE><FONT STYLE="font-size: 10pt; color: blue">40</FONT>,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">8.3</TD><TD STYLE="text-align: justify">Without derogating from Section 8.2 above, the Company may
determine a link between the fee of an Office Holder and the increase in the consumer price index per each financial quarter.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">1</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">With
respect to the CEO, the weight of the Variable Components may reach approximately <STRIKE><FONT STYLE="font-size: 10pt; color: red">75</FONT></STRIKE><FONT STYLE="font-size: 10pt; color: blue">80</FONT>% (eighty percent) of the total compensation amount.</FONT></TD>
</TR>
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">2</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following detailed amounts do not include the additional fringe benefits detailed in Section 9 below and do not include payments for
Office Holders which are subject to the continued engagement as detailed in Section 10 below. In the event that the services of <STRIKE><FONT STYLE="font-size: 10pt; color: red">the</FONT></STRIKE><FONT STYLE="font-size: 10pt; color: blue">an</FONT> Office
Holder are provided via a personal management or service company and not as an employee of Magic, the fees paid to such personal management
or service company will reflect, to the extent determined by Magic in the applicable service agreement, the Fixed Cash Compensation Component
and the additional related benefits and perquisites (plus applicable taxes such as Value Added Tax), in accordance with the guidelines
of the Compensation Policy.</FONT></TD>
</TR>
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">3</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
amounts shall be linked to the Israeli Consumer Price Index, as published by the Israeli Central Bureau of Statistics from time to time
or by any other official Israeli governmental authority. The basis CPI linkage shall be based on the known CPI as of</FONT> <STRIKE><FONT STYLE="font-size: 10pt; color: red">July</FONT></STRIKE><FONT STYLE="font-size: 10pt; color: blue">May</FONT> 1,<STRIKE><FONT STYLE="font-size: 10pt; color: red">2014</FONT></STRIKE><FONT STYLE="font-size: 10pt; color: blue">2025.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"></P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">9.</TD><TD STYLE="text-align: justify"><B><U>Fringe Benefits</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in">9.1</TD><TD STYLE="text-align: justify">Office Holders of the Company are entitled to social welfare conditions and benefits in accordance with
applicable law and to various additional related benefits and perquisites, which are customary <FONT STYLE="color: red"><STRIKE>to</STRIKE></FONT><FONT STYLE="color: blue"><U>for</U></FONT>
office holders in similar positions, such as life insurance, pension fund, social benefits, recuperation payment, education fund, sick
leave, vacation, disability insurance, etc. Such benefits and perquisites may vary depending on geographic location and other circumstances.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in">9.2</TD><TD STYLE="text-align: justify">Furthermore, Office Holders of the Company may be entitled to further fringe benefits as is acceptable
<FONT STYLE="color: red"><STRIKE>in</STRIKE></FONT><FONT STYLE="color: blue"><U>at</U></FONT> the Company and <FONT STYLE="color: red"><STRIKE>in</STRIKE></FONT><FONT STYLE="color: blue"><U>at</U></FONT>
similar companies in the <FONT STYLE="color: red"><STRIKE>marketplace</STRIKE></FONT><FONT STYLE="color: blue"><U>Company&rsquo;s industry</U></FONT>,
including car expense, telephone, communications and computing, relevant literature (newspapers), certain membership fees etc., provided
that the total fringe benefits in excess of those granted in accordance with applicable law is not greater than 20% (twenty percent) of
the Fixed <FONT STYLE="color: blue"><U>Cash </U></FONT>Compensation Component.</TD></TR></TABLE>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">10.</TD><TD STYLE="text-align: justify"><B><U>Payment to an Office Holder Conditional on Continued
Tenure</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0pt">In exceptional circumstances,
in order to preserve the continued employment of an Office Holder <FONT STYLE="color: red"><STRIKE>in</STRIKE></FONT><FONT STYLE="color: blue"><U>at</U></FONT>
the Company, an Office Holder may be entitled, in addition to his <FONT STYLE="color: blue"><U>or her</U></FONT> salary, to an amount
of up to NIS 500,000 per annum for a limited period of time, which payment shall be conditional on the continued employment of such Office
Holder <FONT STYLE="color: red"><STRIKE>in</STRIKE></FONT><FONT STYLE="color: blue"><U>at</U></FONT> the Company. This payment is subject
to the approval of the relevant corporate organs of the Company and will not exceed 20% of the maximum value of the Variable Cash Compensation
Component of an Office Holder, as provided under Section 11.3 below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><B>C.</B></TD><TD STYLE="text-align: justify"><B><U>Annual Grant</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><B>11.</B></TD><TD STYLE="text-align: justify"><B><U>Guidelines for Determining the Variable Cash Compensation
Component, Threshold Conditions, Installments, Setoff and Cap</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">11.1</TD><TD STYLE="text-align: justify"><U>Threshold</U> - unless stipulated otherwise in this policy,
the grant of Variable Cash Compensation, as detailed in Section 11.3 below, with respect to any calendar year is subject to Magic, a
Magic subsidiary or a Magic division (as applicable to the relevant Office Holder&rsquo;s responsibilities) achieving, for the calendar
year to which the Variable Cash Compensation relates, an EBITDA (or net income, as applicable) which is no less than 75% of 110% of the
EBITDA (or net income, as applicable) for the preceding calendar year. &ldquo;<B>EBITDA</B>&rdquo; (or net income, as applicable) means
the EBITDA (or net income, as applicable) calculated based on the audited financial statements for the respective calendar year of Magic,
a Magic subsidiary, or a Magic division (as applicable to the relevant Office Holder&rsquo;s responsibilities) (the &ldquo;<B>Normative
Profit</B>&rdquo;).</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in">11.2</TD><TD STYLE="text-align: justify"><U>Long </U><FONT STYLE="color: red"><U><STRIKE>Tern</STRIKE></U></FONT><FONT STYLE="color: blue"><U>Term</U></FONT><U>
Spreading</U> &ndash; the entitlement to the Variable Cash Compensation as detailed in Section 12 below will be examined over a period
of <FONT STYLE="color: red"><STRIKE>3 (</STRIKE></FONT>three <FONT STYLE="color: blue"><U>(3</U></FONT>) consecutive years, such that
an Office Holder shall not be <FONT STYLE="color: red"><STRIKE>entitle</STRIKE></FONT><FONT STYLE="color: blue"><U>entitled</U></FONT>
to 20% (twenty percent) of his or her Annual Variable Compensation if the average EBITDA in such <FONT STYLE="color: blue"><U>three (</U></FONT>3
<FONT STYLE="color: red"><STRIKE>years</STRIKE></FONT><FONT STYLE="color: blue"><U>) year</U></FONT> period is lower than the Normative
Profit.</TD></TR>
</TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">11.3</TD><TD STYLE="text-align: justify"><U>Maximum value for the annual Variable Cash Compensation
Component</U> - the annual monetary grant to be paid to an Office Holder will not exceed an amount equal to 150% (one hundred and fifty
percent) of the fixed component of that Office Holder, except for the Company&rsquo;s CEO or for extraordinary events in which such grant
will not exceed an amount equal to 200% (two hundred percent) of the fixed component of that Office Holder.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><B>12.</B></TD><TD STYLE="text-align: justify"><B><U>Indices for Determining the Annual Variable Cash Compensation</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">12.1</TD><TD STYLE="text-align: justify"><U>Annual Variable Cash Compensation to the Company&rsquo;s CEO</U></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.6in"></TD><TD STYLE="width: 0.45in">12.1.1</TD><TD STYLE="text-align: justify">The Company&rsquo;s CEO may be entitled to an annual Variable Cash Compensation Component in an amount equivalent
up to 3.3% (three and three-tenths of a percent) of the annual net income attributable to the Company&rsquo;s shareholders, as shall be published
in the Company&rsquo;s consolidated and audited annual financial statements (the &ldquo;<B>Net Annual Income</B>&rdquo;). The Compensation
Committee and the Board of Directors of the Company may, in calculating the annual Variable Cash Compensation Component, determine that
the impact of non-recurring events or events which mainly bear an accounting <FONT STYLE="color: red"><STRIKE>aspect</STRIKE></FONT><FONT STYLE="color: blue"><U>impact</U></FONT>
(e.g., amortizations of intangible assets or revaluations of contingent liabilities due to acquisition of activities) will be neutralized.</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.6in"></TD><TD STYLE="width: 0.45in; text-align: left">12.1.2</TD><TD STYLE="text-align: justify">Payment of an annual Variable Cash Compensation Component
as stipulated in Section 12.1.1 shall be subject to the terms of Section 11 above, including the threshold conditions and the maximum
amount set forth therein.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">12.2</TD><TD STYLE="text-align: justify"><U>Annual Variable Cash Compensation to Other Office Holders</U></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.6in"></TD><TD STYLE="width: 0.45in">12.2.1</TD><TD STYLE="text-align: justify">Subject to the provision for determining the annual Variable Cash Compensation Component set forth in
Section 11 above, including the threshold conditions and the maximum amount and long term spreading set forth therein, the Company&rsquo;s <FONT STYLE="color: blue"><U>other
</U></FONT>Office Holders <FONT STYLE="color: red"><STRIKE>which are not mentioned in Section 12.1 above,</STRIKE></FONT><FONT STYLE="color: blue"><U>(other
than the CEO),</U></FONT> may be entitled to an annual Variable Cash Compensation Component which will be determined in advance within
the framework of an annual variable cash compensation scheme whilst a specific percentage thereof will be determined in accordance with
one of the following, all in accordance with the duties of the Office Holder and the discretion of the relevant Authorized Corporate Organs:</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1.05in"></TD><TD STYLE="width: 0.25in; text-align: left">(i)</TD><TD STYLE="text-align: justify">compliance of the Office Holder with the combination of personal
targets, Company goals and over-achievement<FONT STYLE="color: blue"><U>;</U></FONT> and/or</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1.05in"></TD><TD STYLE="width: 0.25in; text-align: left">(ii)</TD><TD STYLE="text-align: justify"><FONT STYLE="color: red"><STRIKE>as</STRIKE></FONT>
                                            a certain percentage of the EBITDA of the division or the employment unit to which the Office
                                            Holder belongs<FONT STYLE="color: blue"><U>;</U></FONT> and/or <FONT STYLE="color: red"><STRIKE>as
                                            a</STRIKE></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1.05in"></TD><TD STYLE="width: 0.25in; text-align: left"><U><FONT STYLE="color: blue">(</FONT></U>iii)</TD><TD STYLE="text-align: justify"><FONT STYLE="color: red"><STRIKE>as</STRIKE></FONT> a certain
percentage of the net profit of the Company. <FONT STYLE="color: red"><STRIKE>All</STRIKE></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">Each of the foregoing
shall be determined <FONT STYLE="color: red"><STRIKE>in</STRIKE></FONT><FONT STYLE="color: blue"><U>as part of</U></FONT> the annual variable
cash compensation scheme in accordance with the discretion of the relevant organs of the Company.</P>


<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.6in"></TD><TD STYLE="width: 0.45in">12.2.2</TD><TD STYLE="text-align: justify">The Company&rsquo;s CEO shall have discretion to reduce the annual Variable Cash Compensation Component detailed
in Section 12.2.1.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in">12.3</TD><TD STYLE="text-align: justify"><U>Discretional Grant to Office Holders </U><FONT STYLE="color: red"><U><STRIKE>Subordinated</STRIKE></U></FONT><FONT STYLE="color: blue"><U>Subordinate</U></FONT><U>
to the CEO</U></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.6in; text-align: justify; text-indent: 0pt">Subject to the provisions
determining the annual Variable Cash Compensation Component grant set forth in Section 11 above:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.6in"></TD><TD STYLE="width: 0.45in">12.3.1</TD><TD STYLE="text-align: justify">The Compensation Committee and the Board of Directors of the Company may determine that, in addition to
the annual Variable Cash Compensation Component, or instead of the annual Variable Cash Compensation Component, an Office Holder who is
<FONT STYLE="color: red"><STRIKE>subordinated</STRIKE></FONT><FONT STYLE="color: blue"><U>subordinate</U></FONT> to the CEO will be entitled
to a discretionary grant (for example following: a merger, significant acquisition, sale of subsidiary, spin-off, significant debt raise,
public/private offerings, or any other specific task that seems fit to the Compensation Committee and Board).</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.6in"></TD><TD STYLE="width: 0.45in; text-align: left">12.3.2</TD><TD STYLE="text-align: justify">As part of the variable component for an Office Holder who
is subordinate to the CEO, the Company&rsquo;s CEO may approve, for every calendar grant year, a discretionary grant, which will not be greater
than 6 (six) monthly salaries of the Office Holder. The said grant will be reported to the Compensation Committee promptly after the
approval by the CEO.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><B>13.</B></TD><TD STYLE="text-align: justify"><B><U>Reduction of Grant Amounts at the Discretion of the
Company&rsquo;s Board of Directors</U></B></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0pt">The Compensation
Committee and the Board of Directors may reduce the annual Variable Cash Compensation Component of an Office Holder in exceptional circumstances,
considering the business and financial condition of the Company and the duties of the Office Holder, and for reasons which shall be recorded
by them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><B>14.</B></TD><TD STYLE="text-align: justify"><B><U>Return of Annual Grant Amounts in Case of a Restatement
of the Financial Statements</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">14.1</TD><TD STYLE="text-align: justify">Office Holders are required to return any compensation paid
to them on the basis of data included in financial statements that turned out to be erroneous and were subsequently restated during the
two-year period following filing thereof. In such case, compensation amounts will be returned net of taxes that were withheld thereon,
unless the Office Holder has reclaimed or will reclaim such tax payments from the relevant tax authorities (in which case the Office
Holder will also be obligated to return such tax amounts).</TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.6in; text-align: justify; text-indent: 0pt">Notwithstanding
the foregoing, where the required amount for repayment from the annual grant is less than 10% (ten percent) of the amount of the grant
for that year, the Office Holder will not be required to repay it.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">14.2</TD><TD STYLE="text-align: justify">Notwithstanding the above, a restatement due to a change
in applicable law, regulations or accounting rules that become applicable after the date of the publication of the financial statements
of the Company for that year will not be deemed a restatement for which the foregoing return of grant amounts shall apply.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; color: blue">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in"><U>14.3</U></TD><TD STYLE="text-align: justify"><U>The provisions of this Section 14 shall be subject to the terms of a separate &ldquo;clawback&rdquo;
policy adopted by the Company as required under the rules of the U.S. Securities and Exchange Commission that are applicable to the Company.
In the case of any contradiction between the two, the provisions of that separate clawback policy shall govern.</U></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><B>D.</B></TD><TD STYLE="text-align: justify"><B><U>Equity Based Compensation Component</U></B></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><B>15.</B></TD><TD STYLE="text-align: justify"><B><U>The Purpose of the Capital Compensation Mechanism</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">15.1</TD><TD STYLE="text-align: justify">As part of the overall compensation package of an Office
Holder, the Company may offer an Equity Based compensation Component with the purpose of providing an incentive for an Office Holder
to continue to contribute to the success of the Company in the future, success which is expected to be expressed, <I>inter alia</I>,
in the long-term business results of the Company and in its share price, and by advancing the best interests of the Company to generate
profits in the long term.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">15.2</TD><TD STYLE="text-align: justify">The Equity Based Compensation Component is intended to create
an incentive for the continued employment in the long term of talented, experienced, and capable Office Holders.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">15.3</TD><TD STYLE="text-align: justify">The Office Holders may be entitled to Equity Based Compensation
Component in the form of options to purchase shares of the Company, which options may be conditional on performance, as well as other
securities permitted under Magic&rsquo;s equity incentive plans, as in effect from time to time, including, restricted share units and restricted
stock.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><B>16.</B></TD><TD STYLE="text-align: justify"><B><U>Details of the Capital Compensation Mechanism</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">16.1</TD><TD STYLE="text-align: justify">The Equity Based Compensation Component will be granted to
an Office Holder considering, <I>inter alia</I>, the duties and areas of responsibility of the Office Holder in the Company.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">16.2</TD><TD STYLE="text-align: justify">As a rule, the Equity Based Compensation Component will mature
over the overall period which will in any event not be less than 3 (three) years. The conditions to exercising any part or all Equity
Based Compensation Component upon each vesting period shall include the Company or division to which such Officer Holder belongs, meeting
the Normative Profit targets, as shall be published in the Company&rsquo;s consolidated and audited annual financial statements, all
subject to the terms and conditions as set by the Company as of the date of grant (&ldquo;<B>Performance-Based Component</B>&rdquo;).</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">16.3</TD><TD STYLE="text-align: justify">As provided in section 15.3, the Equity Based Compensation
Component may be in the form of options to purchase shares of the Company (the <B>&ldquo;Options&rdquo;</B>) or other securities. The exercise
price of the Options will not be less than the average price of the Company&rsquo;s shares on the applicable stock exchanges on the 30
(thirty) days period preceding the day of grant of such Options.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><B>17.</B></TD><TD STYLE="text-align: justify"><B><U>Maximum value of Equity Based Compensation Component</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in">17.1</TD><TD STYLE="text-align: justify">No Equity <FONT STYLE="color: red"><STRIKE>based</STRIKE></FONT><FONT STYLE="color: blue"><U>Based</U></FONT>
Compensation component maximum economic value has been determined at the time of its realization because there is a difficulty in determining
the maximum value of the equity benefit at this date, <I>inter alia</I>, for the following reasons:</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.6in"></TD><TD STYLE="width: 0.45in; text-align: left">17.1.1</TD><TD STYLE="text-align: justify">The determination of such maximum value is contrary to the
rationale underlying the basis for granting the Equity Based Compensation Component, which is the solution of the problem of the representation
between the management and the shareholders and the uniformity of the interests of the management with the shareholders.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.6in"></TD><TD STYLE="width: 0.45in; text-align: left">17.1.2</TD><TD STYLE="text-align: justify">Significant technical difficulties exist with respect to
determining a maximum economic value for the income arising to the Office Holder from the future sale of the Company&rsquo;s shares, especially
with respect to a sale that is to be carried out many years after the granting of the Equity Based Compensation Component, including
when the Office Holder sells shares after his or her employment with the Company has terminated. One of the purposes of the Compensation
Policy is to incentivize the holding of the shares for a long period, a purpose which may be missed due to technical difficulties if
the said ceiling is determined.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><B>18.</B></TD><TD STYLE="text-align: justify"><B><U>Acceleration of Vesting Dates and Realization of the
Capital Compensation</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">18.1</TD><TD STYLE="text-align: justify">The Company&rsquo;s Board of Directors and the General Meeting
of the Company&rsquo;s Shareholders (if its approval is required under applicable law), after the approval of the Compensation Committee, may
extend the expiry date of Equity Based Compensation Component units.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">18.2</TD><TD STYLE="text-align: justify">The Company&rsquo;s Board of Directors and the General Meeting
of the Company&rsquo;s Shareholders (if its approval is required under applicable law), after the approval of the Compensation Committee, may
provide instructions in connection with the vesting period, including the acceleration of the vesting period of the Equity Based Compensation
Component units of the Office Holders under special circumstances.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><B>19.</B></TD><TD STYLE="text-align: justify"><B><U>Non-Material Change to Terms of Tenure of an Office
Holder</U></B></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0pt">Notwithstanding
anything to the contrary set forth in this Compensation Policy, the Company&rsquo;s CEO may approve a non-material change of the terms of tenure
and employment of an Office Holder subordinate to him, provided that such change is in accordance with this Compensation Policy and its
scope is not greater than 5% (five percent) of the compensation amount of the Office Holder. A non-material change that has been approved
by the said CEO, will be reported to the compensation committee promptly after its approval by the CEO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><B>E.</B></TD><TD STYLE="text-align: justify"><B><U>Retirement Arrangements</U></B></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><B>20.</B></TD><TD STYLE="text-align: justify"><B><U>Principles for Determining Retirement Arrangements</U></B></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0pt">An Office Holder
shall be entitled to retirement payments owing to him pursuant to applicable law (such as severance pay compensation).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><B>21.</B></TD><TD STYLE="text-align: justify"><B><U>Prior Notice and Adjustment Period</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">21.1</TD><TD STYLE="text-align: justify">An Office Holder will be entitled to a prior notice period
of 6 (six) months. During the prior notice period, the Office Holder will be required to continue to fulfill his duties, unless the Company
decides that he will not continue to fulfill his duties in effect, and the Office Holder will be entitled to a continuation of all the
conditions of his tenure and employment, during the prior notice period, without change.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">21.2</TD><TD STYLE="text-align: justify">The Authorized Corporate Organs may, under special circumstances,
approve for an Office Holder an adjustment period that together with the prior notice period will not be greater than 12 (twelve) months
, subject to noncompetition. During the adjustment period, the Office Holder will be entitled to a fixed fee and fringe benefits only.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">21.3</TD><TD STYLE="text-align: justify">In determining the adjustment period of an Office Holder,
the Company may take into consideration the following considerations, fully or partially: the period of tenure or employment of the Office
Holder, terms of tenure and employment during this period, performance of the Company during the said period, the contribution of the
Office Holder to obtaining the Company&rsquo;s goals and for the earning of its profits and the circumstances of the retirement.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><B>F.</B></TD><TD STYLE="text-align: justify"><B><U>Compensation of Directors</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">22.</TD><TD STYLE="text-align: justify">External directors and directors who are not employed by
the Company shall be entitled to compensation pursuant to the Companies Regulations (Rules Regarding Compensation and Expenses of External
Directors) including a fixed annual amount and an amount for participation in meetings where their fee shall not be greater than the
maximum fee permitted in these regulations.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">23.</TD><TD STYLE="text-align: justify">The directors of the Company may be entitled to an Equity
Based Compensation in accordance with Chapter D of this Compensation Policy and subject to approval of the competent organs.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><B>G.</B></TD><TD STYLE="text-align: justify"><B><U>Indemnification and Insurance</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">24.</TD><TD STYLE="text-align: justify">An Office Holder (including a director) is entitled, in addition
to a compensation package pursuant to this Compensation Policy, and subject to the approval or consent of the Authorized Corporate Organs,
to insurance coverage with respect to such Office Holder&rsquo;s liability and to indemnification arrangements, all subject to applicable
law.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">25.</TD><TD STYLE="text-align: justify">The engagement in connection with the liability insurance
of the Office Holder will be determined in accordance with the market conditions and in such a way so that it will not materially influence
the profitability, assets or liabilities of the Company.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in">25.1</TD><TD STYLE="text-align: justify">The total cover amount for an Office Holder under an insurance policy will not be greater than <FONT STYLE="color: red"><STRIKE>60</STRIKE></FONT><FONT STYLE="color: blue"><U>80</U></FONT>
million US Dollars.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; color: red"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in"><STRIKE>25.2</STRIKE></TD><TD STYLE="text-align: justify"><STRIKE>The total annual premium will not be greater than 2,000,000 US Dollars.</STRIKE></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">26.</TD><TD STYLE="text-align: justify">The amount of compensation which the Company shall pay (in
addition to the amounts which shall be received from the insurance company, if received under the insurance procured by the Company)
for every Office Holder, accumulatively, will not be greater than 25% of the equity of the Company in accordance with the latest financial
statements in effect as of the date of the actual payment of the indemnification.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">27.</TD><TD STYLE="text-align: justify">An Office Holder of the Company (including a director of
the Company), may be entitled to receive an exemption letter from the Company, in accordance with the provisions of the Companies Law
and the Company&rsquo;s Articles of Association, provided that the exemption letter indicated that the exemption does not apply to any
resolution or transaction which involves a personal interest of the controlling shareholder or any other Office Holder of the Company
(even if the interested party is different from the one receiving the exemption).</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt">&nbsp;</P>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2 BYLAWS
<SEQUENCE>3
<FILENAME>ea024091701ex99-2_magic.htm
<DESCRIPTION>MAGIC ANNOUNCE 2025 AGM ON JUNE 10 2025
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="text-align: right; margin: 0"><B>Exhibit 99.2</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MAGIC SOFTWARE ENTERPRISES LTD.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROXY FOR 2025 ANNUAL GENERAL MEETING OF SHAREHOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>TO BE HELD ON JUNE 10, 2025</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD
OF DIRECTORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The undersigned hereby constitutes
and appoints Asaf Berenstin the true and lawful attorney, agent and proxy of the undersigned, with full power of substitution to him,
to represent and to vote, on behalf of the undersigned, all of the Ordinary Shares of Magic Software Enterprises Ltd. (the &ldquo;<B>Company</B>&rdquo;)
held of record in the name of the undersigned at the close of business on Monday, May 5, 2025, at the 2025 Annual General Meeting of Shareholders
of the Company (the &ldquo;<B>Meeting</B>&rdquo;) to be held at the offices of the Company, Terminal Center, 1 Yahadut Canada St., Or
Yehuda 6037501, Israel, on Tuesday, June 10, 2025 at 2:00 p.m. (local time), and at any and all adjournments or postponements thereof,
on the matters listed on the reverse side, which are more fully described in the Notice of 2025 Annual General Meeting of Shareholders
(the &ldquo;<B>Notice</B>&rdquo;) and Proxy Statement (the &ldquo;<B>Proxy Statement</B>&rdquo;) relating to the Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The undersigned acknowledges
the availability to him, her or it of the Notice and Proxy Statement relating to the Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">THIS PROXY, WHEN PROPERLY
EXECUTED, WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED. IF NO DIRECTIONS ARE INDICATED WITH RESPECT TO ANY OF PROPOSALS
1 THROUGH 8, THE SHARES REPRESENTED BY THE PROXY WILL BE VOTED BY THE ABOVE-DESIGNATED PROXY &ldquo;FOR&rdquo; THAT PROPOSAL, AS RECOMMENDED
BY THE COMPANY&rsquo;S BOARD OF DIRECTORS. THIS PROXY WILL FURTHERMORE BE VOTED AS THE ABOVE-DESIGNATED PROXY SHALL DEEM ADVISABLE ON
SUCH OTHER BUSINESS AS MAY COME BEFORE THE MEETING.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 21.3pt">&nbsp;<B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 35.45pt">Any and all proxies heretofore given by the undersigned
are hereby revoked.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Continued and to be signed on the reverse side)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B></B></P>

<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ANNUAL GENERAL MEETING OF SHAREHOLDERS OF</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MAGIC SOFTWARE ENTERPRISES LTD.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>June 10, 2025</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Please date, sign and mail</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>your proxy card in the </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>envelope provided as soon </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>as possible.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Please detach along perforated line and mail
in the envelope provided.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">THE BOARD OF DIRECTORS RECOMMENDS A VOTE &ldquo;FOR&rdquo;
EACH OF PROPOSALS 1 THROUGH 8. PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK
INK AS SHOWN HERE &#9746;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Important Instructions for Proposals <FONT STYLE="text-transform: uppercase">5, 6 </FONT>and 8:</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>BY
EXECUTING AND SUBMITTING THIS PROXY CARD, YOU ARE DEEMED TO CONFIRM THAT YOU ARE NOT A CONTROLLING SHAREHOLDER AND DO NOT HAVE A CONFLICT
OF INTEREST (REFERRED TO AS A &ldquo;PERSONAL INTEREST&rdquo; UNDER THE ISRAELI COMPANIES LAW) <FONT STYLE="text-transform: uppercase">(other
than a conflict of interest not deriving from a shareholder&rsquo;s ties to A controlling shareholder, IN THE CASE OF PROPOSALS 5 AND
6)</FONT> IN THE APPROVAL OF PROPOSALS 5, 6 OR 8.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>If you believe that you, or a related party of yours, has such a conflict of interest, or if you are a controlling shareholder, and you wish to participate in the vote on Proposals 5, 6 and/or 8, you should contact the Company&rsquo;s Chief Financial Officer, Asaf Berenstin, at aberenstein@magicsoftware.com, who will instruct you how to submit your vote.&nbsp;</B>In that case, your vote will count towards or against the ordinary majority required for the approval of Proposals 5, 6 and/or 8 (as applicable) but will not count towards or against the special majority required for the approval of that/those proposal(s).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>PROPOSAL</U></B>&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To re-elect Guy Bernstein for a term expiring at the Company&rsquo;s 2026 Annual General Meeting of Shareholders.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>FOR</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>AGAINST</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>ABSTAIN</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
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    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To re-elect Avi Zakay for a term expiring at the Company&rsquo;s 2026 Annual General Meeting of Shareholders.</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To re-elect Mr. Sami Totah as an unaffiliated director (as defined under the Israeli Companies Law) and an &nbsp;&nbsp;independent director (as defined under the Nasdaq Listing Rules) for a term expiring at the Company&rsquo;s 2026 Annual General Meeting of Shareholders.</FONT></TD></TR>
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    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; width: 18%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</FONT></TD>
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    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To re-elect Mr. Ron Ettlinger as an external director (as defined under the Israeli Companies Law) for an additional one-year term.</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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    <TD>&nbsp;</TD>
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    <TD STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>AGAINST</B></FONT></TD>
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    <TD STYLE="width: 1%">&nbsp;</TD>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To re-elect Mr. Sagi Schliesser as an external director (as defined under the Israeli Companies Law) for an additional one-year term.</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To approve the re-appointment of Ziv Haft Certified Public Accountants, a member firm of BDO International Limited, or BDO Israel, as our independent registered public accounting firm for the year ending December 31, 2025 and the additional period until our next annual general meeting of shareholders, and to authorize the Board and/or its audit committee to fix their compensation. </FONT></TD></TR>
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    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To approve an updated version of the Compensation Policy for our directors and officers. </FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To change the address on your account, please
check the box at right and indicate your new address in the address space above. Please note that changes to the registered name(s) on
the account may not be submitted via this method. &#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Signature of Shareholder _________ Date ______ Signature of Shareholder
_________Date ______________</P>

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<P STYLE="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>Note: Please sign exactly as your name or
names appear on this Proxy. When shares are held jointly, each holder should sign. When signing as executor, administrator, attorney,
trustee or guardian, please give full title as such. If the signer is a corporation, please sign full corporate name by duly authorized
officer, giving full title as such. If signer is a partnership, please sign in partnership name by authorized person.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
