-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 CYZNBUl18tti3qJAYfDuEZ/mOjd1/ECdWyFbLPoR0dLq+0HmvKnaHXPXVopIA6C7
 /FHI2jT7Q1wUCbur9uXVBg==

<SEC-DOCUMENT>0001178913-08-003209.txt : 20081229
<SEC-HEADER>0001178913-08-003209.hdr.sgml : 20081225
<ACCEPTANCE-DATETIME>20081229061454
ACCESSION NUMBER:		0001178913-08-003209
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20081229
FILED AS OF DATE:		20081229
DATE AS OF CHANGE:		20081229
EFFECTIVENESS DATE:		20081229

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PLURISTEM THERAPEUTICS INC
		CENTRAL INDEX KEY:			0001158780
		STANDARD INDUSTRIAL CLASSIFICATION:	BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836]
		IRS NUMBER:				980351734
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31392
		FILM NUMBER:		081270937

	BUSINESS ADDRESS:	
		STREET 1:		MATAM ADVANCED TECHNOLOGY PARK
		STREET 2:		BUILDING NO. 20
		CITY:			HAIFA
		STATE:			L3
		ZIP:			31905
		BUSINESS PHONE:		972-4-850-1080

	MAIL ADDRESS:	
		STREET 1:		MATAM ADVANCED TECHNOLOGY PARK
		STREET 2:		BUILDING NO. 20
		CITY:			HAIFA
		STATE:			L3
		ZIP:			31905

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PLURISTEM LIFE SYSTEMS INC
		DATE OF NAME CHANGE:	20030701

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AI SOFTWARE INC
		DATE OF NAME CHANGE:	20010906
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>zk86181.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        \\Backup\office\EDGAR Filing\Pluristem Therapeutics Inc\86181\a86181.eep -->
     <!-- Control Number: 86181                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Pluristem Therapeutics Inc                                       -->
     <!-- Project Name:   DEF14A                                                           -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>DEF14A</TITLE>
</HEAD>
<BODY>

<!-- MARKER FORMAT-SHEET="Scotch Rule Top-TNR" FSL="Workstation" -->
<HR ALIGN=LEFT WIDTH=100% SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE STYLE="margin-top: -10px">

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>UNITED STATES </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=4>SECURITIES AND EXCHANGE COMMISSION </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>WASHINGTON, DC 20549 </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>SCHEDULE 14A </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Rule 14a-101) </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>SCHEDULE 14A
INFORMATION </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Proxy Statement
Pursuant to Section 14(a) of the </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>Securities Exchange
Act of 1934 </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Amendment No.
___) </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Filed by the Registrant <FONT size="3" face="Wingdings">x</font> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Filed by a Party other than the
Registrant <FONT size="3" face="Wingdings">o
</font> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Check the appropriate box: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="3" face="Wingdings">o
</font>  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Preliminary
Proxy Statement. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="3" face="Wingdings">o
</font>  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Confidential,
for Use of the Commission Only&nbsp;(as permitted by Rule 14a-6(e)(2)).</B></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="3" face="Wingdings">x</font>  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Definitive
Proxy Statement. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="3" face="Wingdings">o
</font>  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Definitive
Additional Materials. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="3" face="Wingdings">o
</font>  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Soliciting
Material Pursuant to &sect;240.14a-12. </FONT></TD>
</TR>
</TABLE>
<BR>



<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" width=100%>
<TR VALIGN="TOP">
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="5"><B>Pluristem Therapeutics Inc.</B> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD align=center><HR SIZE=1 NOSHADE WIDTH=100%></TD></TR>
<TR VALIGN="TOP">
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>(Name of Registrant as Specified In Its Charter)</B> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD align=center><HR SIZE=1 NOSHADE WIDTH=100%></TD></TR>
<TR VALIGN="TOP">
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>(Name of Person(s) Filing Proxy Statement, if Other Than the Registrant)</B> </FONT></TD></TR>
</TABLE>
<BR>





<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Payment of Filing Fee (Check the
appropriate box): </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="3" face="Wingdings">x</font> </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>No
fee required.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="3" face="Wingdings">o</font>  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fee
computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Title
of each class of securities to which transaction applies: </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Footnote Rule-TNR" FSL="Workstation" -->
<HR SIZE=1 NOSHADE WIDTH=100% ALIGN=LEFT>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Aggregate
number of securities to which transaction applies: </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Footnote Rule-TNR" FSL="Workstation" -->
<HR SIZE=1 NOSHADE WIDTH=100% ALIGN=LEFT>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Per
unit price or other underlying value of transaction computed pursuant to
          Exchange Act Rule 0-11 (set forth the amount on which the filing fee is
          calculated and state how it was determined): </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Footnote Rule-TNR" FSL="Workstation" -->
<HR SIZE=1 NOSHADE WIDTH=100% ALIGN=LEFT>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Proposed
maximum aggregate value of transaction: </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Footnote Rule-TNR" FSL="Workstation" -->
<HR SIZE=1 NOSHADE WIDTH=100% ALIGN=LEFT>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total
fee paid: </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Footnote Rule-TNR" FSL="Workstation" -->
<HR SIZE=1 NOSHADE WIDTH=100% ALIGN=LEFT>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="3" face="Wingdings">o</font>    </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fee
paid previously with preliminary materials. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="3" face="Wingdings">o</font>   </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Check
box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and
identify the filing for which the offsetting fee was paid previously. Identify the
previous filing by registration statement number, or the Form or Schedule and the date of
its filing. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Amount
Previously Paid: </FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Footnote Rule-TNR" FSL="Workstation" -->
<HR SIZE=1 NOSHADE WIDTH=100% ALIGN=LEFT>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Form,
Schedule or Registration Statement No.: </FONT></TD>
</TR>
</TABLE>
<BR>

 <!-- MARKER FORMAT-SHEET="Footnote Rule-TNR" FSL="Workstation" -->
<HR SIZE=1 NOSHADE WIDTH=100% ALIGN=LEFT>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Filing
Party: </FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Footnote Rule-TNR" FSL="Workstation" -->
<HR SIZE=1 NOSHADE WIDTH=100% ALIGN=LEFT>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date
Filed: </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Footnote Rule-TNR" FSL="Workstation" -->
<HR SIZE=1 NOSHADE WIDTH=100% ALIGN=LEFT>

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


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

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

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To Be Held On January
21, 2009 </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You
are hereby notified that the annual meeting of stockholders of Pluristem Therapeutics
Inc., or the Company, will be held on Wednesday, January 21, 2009 at 5:00 p.m., local time
(in Israel), at our offices, Matam Advanced Technology Park Building No. 20, Haifa,
Israel, 31905, for the following purposes: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.&nbsp;&nbsp;&nbsp;&nbsp;
          To elect eight directors to serve until the next annual meeting of stockholders
          and until their respective successors shall have been duly elected and
          qualified; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.&nbsp;&nbsp;&nbsp;&nbsp;
          To approve the Amended and Restated 2005 Stock Option Plan of the Company,
          amending the current Amended 2005 Stock Option Plan in order to: (i) increase
          the number of shares of Common Stock authorized for issuance thereunder from
          1,990,000 to be equal to 16% of the number of shares of Common Stock issued and
          outstanding on a fully diluted basis immediately prior to the grant of
          securities; (ii) allow the issuance of shares of Common Stock and units for such
          shares of Common Stock; and (iii) set the termination date thereof to be
          December 31, 2018; and </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.&nbsp;&nbsp;&nbsp;&nbsp;
          To consider and act upon such other business as may properly come before the
          meeting or any adjournment or postponement thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
stockholders are cordially invited to attend the annual meeting. If your shares are
registered in your name, please bring the admission ticket attached to your proxy card. If
your shares are registered in the name of a broker, trust, bank or other nominee, you will
need to bring a proxy or a letter from that broker, trust, bank or other nominee or your
most recent brokerage account statement, that confirms that you are the beneficial owner
of those shares. If you do not have either an admission ticket or proof that you own
shares of the Company, you will not be admitted to the meeting. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors has fixed the close of business on December 24, 2008, as the record
date for the meeting. Only stockholders on the record date are entitled to notice of and
to vote at the meeting and at any adjournment or postponement thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your
vote is important regardless of the number of shares you own. The Company requests that
you complete, sign, date and return the enclosed proxy card without delay in the enclosed
postage-paid return envelope, even if you now plan to attend the annual meeting. You may
revoke your proxy at any time prior to its exercise by delivering written notice or
another duly executed proxy bearing a later date to the Secretary of the Company, or by
attending the annual meeting and voting in person. </FONT></P>


<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By order of the Board of Directors, <BR><BR><U><B>/s/ Yaky Yanay</B></U><B><BR>Yaky Yanay, Chief
Financial Officer and Secretary</B> </FONT> </TD>
</TR>
</TABLE>
<BR>




<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>December 29, 2008 </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>IMPORTANT: In order to secure a quorum
and to avoid the expense of additional proxy solicitation, please sign, date and return
your proxy promptly in the enclosed envelope even if you plan to attend the meeting
personally. Your cooperation is greatly appreciated.</B> </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>PLURISTEM THERAPEUTICS
INC.</B> </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>Matam Advanced
Technology Park </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>Building No. 20 </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>Haifa, Israel, 31905 </FONT></P>

<!-- MARKER FORMAT-SHEET="Footnote Rule-TNR" FSL="Workstation" -->
<HR SIZE=1 NOSHADE WIDTH=15% ALIGN=center>

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

<!-- MARKER FORMAT-SHEET="Footnote Rule-TNR" FSL="Workstation" -->
<HR SIZE=1 NOSHADE WIDTH=15% ALIGN=center>

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

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
proxy statement and the accompanying proxy are being mailed by the Company to the holders
of record of the Company&#146;s outstanding shares of Common Stock, $0.00001 par value, or
Common Stock, commencing on or about December 29, 2008. The accompanying proxy is being
solicited by the Board of Directors of the Company, or the Board, for use at the annual
meeting of stockholders of the Company, or the Meeting, to be held on January 21, 2009 at
5:00 p.m. local time (in Israel), at our offices, Matam Advanced Technology Park Building
No. 20, Haifa, Israel, 31905 and at any adjournment or postponement thereof. The cost of
solicitation of proxies will be borne by the Company. Directors, officers and employees of
the Company may assist in the solicitation of proxies by mail, telephone, telefax, in
person or otherwise, without additional compensation. Brokers, custodians and fiduciaries
will be requested to forward proxy soliciting materials to the owners of stock held in
their names and the Company will reimburse them for their reasonable out-of-pocket
expenses incurred in connection with the distribution of such proxy materials. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board has fixed December 24, 2008 as the record date, or the Record Date, for the Meeting.
Only stockholders of record on the Record Date are entitled to notice of and to vote at
the Meeting or any adjournment or postponement thereof. On December 24, 2008, there were
issued and outstanding 11,458,662 shares of Common Stock. Each share of Common Stock is
entitled to one vote per share. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s Bylaws provide that a quorum shall consist of the representation at the
Meeting, in person or by proxy, of stockholders entitled to vote at least thirty-three and
one-third percent (33 1/3%) of the stock issued and outstanding and entitled to vote
thereat, present in person or represented by proxy. The affirmative vote of the holders of
a majority of the votes present in person or represented by proxy is required for the
election of each of the director nominees and for the adoption of the Company&#146;s
Amended and Restated 2005 Stock Option Plan, or the 2005 Plan, and for the approval of any
other business which may properly be brought before the Meeting or any adjournment or
postponement thereof. A majority means that such actions require more than fifty percent
(50%) of the votes cast to be approved. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
shares of Common Stock represented in person or by valid proxies received by the Company
prior to the date of, or at, the Meeting will be counted for purposes of determining the
presence of a quorum for taking action on the proposals set forth below and be voted as
specified in the proxies or voting instructions. With regard to the election of directors,
votes may be cast for or against particular director nominees, left blank or stockholders
may abstain from voting for each nominee. Votes that are left blank will be voted FOR the
election of the directors named on the proxy and For the adoption of our 2005 Plan;
abstentions are not considered &#147;votes cast&#148; and thus have no effect on the
election of directors; abstentions and broker non-votes are not considered &#147;votes
cast&#148; for the purpose of adopting the proposed amendments to our 2005 Plan and thus
also have no effect thereon. With regard to other matters that may properly come before
the Meeting, votes will be cast at the discretion of the proxies. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Abstentions
may be specified on all proposals and will be counted as present for purposes of
determining a quorum. Submitted proxies which are left blank and broker non-votes will
also be counted as present for purposes of determining a quorum, but are not counted for
purposes of determining whether a proposal has been approved in matters where the proxy
does not confer the authority to vote on such proposal, and thus have no effect on its
outcome. Broker non-votes are shares held by a broker or nominee which are represented at
the Meeting, but with respect to which the broker or nominee is not empowered to vote on a
particular proposal. Brokers have discretion to vote matters that are considered
&#147;routine&#148;, such as the uncontested election of directors, however, the matter
described in Item&nbsp;2, the adoption of the Company&#146;s Amended and Restated 2005
Stock Option Plan, is not a &#147;routine&#148; matter and therefore brokers or nominees
are not empowered to vote on such matter without instructions from the street name holder. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
stockholder who has submitted a proxy may revoke it at any time before it is voted, by
written notice addressed to and received by our Secretary, by submitting a duly executed
proxy bearing a later date or by electing to vote in person at the Meeting.&nbsp; The mere
presence at the Meeting of the person appointing a proxy does not, however, revoke the
appointment. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
or about December 29, 2008, this proxy statement, together with the related proxy card, is
being mailed to our stockholders of record as of the Record Date.&nbsp; Our annual report
to our stockholders for the fiscal year ended June 30, 2008, or Fiscal 2008, including our
financial statements, is being mailed together with this proxy statement to all of our
stockholders of record as of the Record Date.&nbsp; In addition, we have provided brokers,
dealers, banks, voting trustees and their nominees, at our expense, with additional copies
of our annual report so that our record holders could supply these materials to our
beneficial owners as of the Record Date. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IMPORTANT:
If your shares are held in the name of a brokerage firm, bank, nominee or other
institution, you should provide instructions to your broker, bank, nominee or other
institution on how to vote your shares. Please contact the person responsible for your
account and give instructions for a proxy to be completed for your shares. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
website address is included several times in this proxy statement as a textual reference
only and the information in our website is not incorporated by reference into this proxy
statement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
numbers of shares in this proxy statement have been adjusted to reflect the one for two
hundred reverse stock split we effected on November 26, 2007. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PROPOSAL NO. 1 &#150;
ELECTION OF DIRECTORS </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Meeting, eight directors are to be elected, which number shall constitute our entire
Board, to hold office until the next annual meeting of stockholders and until their
successors shall have been duly elected and qualified. Unless otherwise specified in the
proxy, it is the intention of the persons named in the enclosed form of proxy to vote the
stock represented thereby for the election as directors, each of the nominees whose names
and biographies appear below. All of the nominees whose names and biographies appear below
are presently our directors.&nbsp; In the event any of the nominees should become
unavailable or unable to serve as a director, it is intended that votes will be cast for a
substitute nominee designated by the Board. The Board has no reason to believe that the
nominees named will be unable to serve if elected. Each nominee has consented to being
named in this proxy statement and to serve if elected. Hava Meretzki, one of our
directors, is the spouse of Shai Meretzki, the founder and the former Chief Technology
Officer of our wholly owned subsidiary, Pluristem Ltd. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Principal Employment and
Experience of Director Nominees </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following information is furnished with respect to the persons nominated for election as
directors; all of these nominees are current members of our Board: </FONT></P>


<!-- MARKER FORMAT-SHEET="Exhibit Index Hang" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Name</B> </FONT> </TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Age</B> </FONT></TD>
<TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>
Present Principal Employer and Prior Business Experience</B> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Exhibit Index Hang" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Zami Aberman </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>54</FONT></TD>
<TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                     Mr. Aberman became our Chief Executive Officer and President in
September, 2005 and a                                     director of our Company in
November, 2005. Mr. Aberman became our Co-Chairman of the
                                    Board in April, 2006.  He has 20 years of experience
in marketing and management in the                                     hi-tech industry.
He held Chief Executive and Chairman positions in companies in Israel,
                                    the United States, Europe, Japan and Korea.  Mr.
Aberman operated within high-tech                                     global companies in
the fields of automatic optical inspection, network security, video
                                    over IP, software, chip design and robotic markets.
 Mr. Aberman serves as the chairman                                     of Rose Hitech
Ltd., a private investment company; as the chairman of VLScom Ltd., a
                                    private company specializing in video compression for
HDTV and video over IP and as a                                     director of Ori
Software Ltd., a private company engaged in data management.  Before
                                    serving in those positions he served, between 2002
and 2005, as the President and CEO of                                     Elbit Vision
Systems, a public company traded on the OTCBB market (EVSNF.OB) which
                                    supplies inspection systems for the microelectronic
industry. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 5-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=30%>&nbsp;</TD>
<TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
In
1992, Mr. Aberman was awarded the Rothschild Prize for excellence in his field from
                                    the President of the State of Israel.  Mr. Aberman
holds a B.Sc. in Mechanical                                     Engineering from Ben
Gurion University in Israel.</FONT></TD>
</TR>
</TABLE>
<BR>

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

<!-- MARKER FORMAT-SHEET="Exhibit Index Hang" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Israel  Ben-Yoram*</FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 48</FONT></TD>
<TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Mr. Ben-Yoram became a director of our Company in January, 2005.  He
has been a director                                     and partner in the accounting
firm of Mor, Ben-Yoram and Partners in Israel since 1985.
                                    In addition, since 1992, Mr. Ben-Yoram has been a
shareholder and has served as the head                                     director of
Mor, Ben-Yoram Ltd., a private company in Israel in parallel to the
                                    operation of Mor, Ben-Yoram and Partners.  This
company provides management services,                                     economic
consulting services and other professional services to businesses. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 5-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=30%>&nbsp;</TD>
<TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Mr.
Ben-Yoram received a B.A. in accounting from the University of Tel Aviv, an M.A. in
                                    Economics from the Hebrew University of Jerusalem, an
LLB and an MBA from Tel Aviv                                     University and an LLM
from Bar Ilan University.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Exhibit Index Hang" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Isaac Braun* </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>56</FONT></TD>
<TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                     Mr. Braun became a director of our Company in July, 2005.  Mr.
Braun is a business                                     veteran with entrepreneurial,
industrial and manufacturing experience.  He is a
                                    co-founder and has been a board member of several
hi-tech start-ups in the areas of                                     e-commerce,
security, messaging, search engines and biotechnology.  Mr. Braun is
                                    involved with advising private companies on raising
financing and business development. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Exhibit Index Hang" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mark Germain* </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>58</FONT></TD>
<TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    Mr. Germain became a director of our Company and was appointed as
Co-Chairman of our                                     Board in May 2007.  For more than
five years, Mr. Germain has been a merchant banker
                                    serving primarily the biotech and life sciences
industries.  He has been involved as a                                     founder,
director, Chairman of the Board of, and/or investor in, over twenty companies
                                    in the biotech field, and assisted many of them in
arranging corporate partnerships,                                     acquiring
technology, entering into mergers and acquisitions, and executing financings
                                    and going public transactions.  He graduated from New
York University School of Law in                                     1975, Order of the
Coif, and was a partner in a New York law firm practicing corporate
                                    and securities law before leaving in 1986.  Since
then, and until he entered the biotech                                     field in 1991,
he served in senior executive capacities, including as president of a
                                    public company sold in 1991.  In addition to being
Co-Chairman of the Company, Mr.                                     Germain is a director
of the following publicly traded companies: Stem Cell Innovations,
                                    Inc., ChromaDex, Inc., Omnimmune Corp. and Collexis
Holdings, Inc.  He is also a                                     co-founder and director
of a number of private companies in the biotechnology field. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Exhibit Index Hang" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Hava Meretzki </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39</FONT></TD>
<TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    Ms. Meretzki became a director of our Company in October, 2003. Ms.
Meretzki is an                                     attorney and is a partner in the law
firm of Meretzki - Tavor  in Haifa, Israel.  Ms.
                                    Meretzki specializes in civil, trade and labor law
and is presently Vice-Chairman for                                     the National
Council of the Israel Bar Association.  Recently Ms. Meretzki was nominated
                                    as a member committee for the nomination of legal
advisers in governmental companies. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 5-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=30%>&nbsp;</TD>
<TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Ms.
Meretzki received a Bachelors Degree in Law from the Hebrew University in 1991 and
                                    was admitted to the Israel Bar Association in 1993.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Exhibit Index Hang" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Nachum Rosman* </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>62</FONT></TD>
<TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                   Mr. Rosman became a director of our Company in October, 2007.  In
1999, Mr. Rosman                                     founded Talecity Ltd., a movie
production company, and has since been serving as its
                                    Chief Financial Officer.  In addition he provides
management and consulting services to                                     startup
companies in the financial, organizational and human resource aspects of their
                                    operations.  Mr. Rosman also serves as a director at
several privately held companies.                                     Throughout his
career, Mr. Rosman held Chief Executive and Chief Financial Officer
                                    positions in Israel, the United States and England.
 In these positions he was                                     responsible, among other
things, for finance management, fund raising, acquisitions and
                                    technology sales. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 4-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=30%>&nbsp;</TD>
<TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Mr.
Rosman holds a B.Sc. in Management Engineering and an M.Sc. in Operations Research
                                    from the Technion, Haifa, Israel.  Mr. Rosman also
participated in a Ph.D. program in                                     Investments and
Financing at the Tel Aviv University, Israel.</FONT></TD>
</TR>
</TABLE>
<BR>


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

<!-- MARKER FORMAT-SHEET="Exhibit Index Hang" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Doron Shorrer* </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>55</FONT></TD>
<TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                   Mr. Shorrer became a director of our Company in October, 2003.
 Between 2002 and 2004 he                                     was Chairman of the Boards
of Phoenix Insurance Company, one of the largest insurance
                                    companies in Israel, and of Mivtachim Pension Benefit
Group, the largest pension fund in                                     Israel. Prior to
serving in these positions, Mr. Shorrer held senior positions that
                                    included Arbitrator at the Claims Resolution Tribunal
for Dormant Accounts in                                     Switzerland; Economic and
Financial Advisor, Commissioner of Insurance and Capital
                                    Markets for the State of Israel; Member of the board
of directors of "Nechasim" of the                                     State of Israel;
Member Committee for the Examination of Structural Changes in the
                                    Capital Market (The Brodet Committee); General
Director of the Ministry of Transport;                                     Co-Founder and
director of an accounting firm with offices in Jerusalem, Tel-Aviv and
                                    Haifa; Member of the Lecture Staff of the Amal School
Chain; Chairman of a Public                                     Committee for
Telecommunications; and Economic Consultant to the Ministry of Energy.
                                    Among many areas of expertise, Mr. Shorrer
formulates, implements and administers                                     business
planning in the private and institutional sector in addition to consulting on
                                    economic, accounting and taxation issues to a large
audience ranging from private                                     concerns to government
ministries. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 5-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=30%>&nbsp;</TD>
<TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Mr.
Shorrer holds a B.A. in Economics and Accounting and an M.A. in Business
                                    Administration (specialization in finance and
banking) from the Hebrew University of                                     Jerusalem and
is a Certified Public Accountant (ISR).</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Exhibit Index Hang" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Shai Pines </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>55</FONT></TD>
<TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                       Mr. Pines is a lawyer admitted to practice law in the State of
Israel since 1981. He is                                     a partner with, and heads
the Commercial and International Transactions Department of,
                                    the Israeli law firm of Hamburger Evron &amp; Co. Since
2000 Mr. Pines served as a member of                                     the Supervisory
Board of Globe Trade Centre SA (GTC), a Polish company, which is traded
                                    on the Warsaw Stock Exchange, and between the years
2000 - 2005 as a member of the                                     Supervisory Board of
GTC International BV, a Dutch private company. Mr. Pines is also a
                                    member of the Board of Governors of the Law Faculty
of the Tel-Aviv University since                                     2006. Mr. Pines
holds an MBA degree from Kellogg School of Management, Northwestern
                                    University, U.S.A. &amp; the Leon Recanati Graduate
School of Business Administration,                                     Tel-Aviv
University and an LL.B. degree from Tel-Aviv University. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>* The Board determined that this
director is &#147;independent&#148; as defined by the rules of the Securities and Exchange
Commission, or SEC, and the NASDAQ Stock Market, or NASDAQ, rules and regulations. None of
the independent directors has any relationship with us besides serving on our Board. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
affirmative vote of the holders of a majority of the votes present in person or
represented by proxy is required for the election of each of the director nominees. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH="600" CELLPADDING="3" CELLSPACING="0" BORDER="1" ALIGN="CENTER">
<TR VALIGN=TOP>
<TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  <B>The Board recommends a vote FOR the election of each of the director nominees named above.</B> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PROPOSAL NO. 2 &#150;
ADOPTION OF THE COMPANY&#146;S AMENDED AND RESTATED 2005 STOCK OPTION PLAN </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board has unanimously approved, and unanimously recommends that the stockholders of the
Company approve the Amended and Restated 2005 Stock Option Plan of the Company, amending
the current Amended 2005 Stock Option Plan in order to: (i) increase the number of shares
of Common Stock authorized for issuance thereunder from 1,990,000 to be equal to 16% of
the number of shares of Common Stock issued and outstanding on a fully diluted basis
immediately prior to the grant of securities; (ii) allow the issuance of shares of Common
Stock and units for such shares of Common Stock; and (iii) set the termination date
thereof to be December 31, 2018, as set forth in the Amended and Restated 2005 Stock
Option Plan attached hereto as Appendix&nbsp;A (reflecting changes to the Company&#146;s
2005 Stock Option Plan in the form filed with the Securities and Exchange Commission on
May 24, 2007 as exhibit 99.1 to the Company&#146;s current report on Form 8-K). </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board believes that equity interests are a significant factor in the Company&#146;s
ability to attract, retain and motivate key employees, directors and other service
providers that are critical to the Company&#146;s long-term success and that an increase
in the number of shares available for issuance under the 2005 Plan is necessary in order
to provide those persons with incentives to serve the Company. The Board believes that
allowing the issuance of shares of Common Stock, or Restricted Stock, or units for such
Restricted Stock, would allow the Company greater flexibility in connection with its
compensation methods. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
approving the increase in the number of shares reserved for issuance under the 2005 Plan,
the Board considered (i)&nbsp;that only approximately 42,147 shares remained available for
grant under the 2005 Plan as of December 24, 2008 (not taking into account options grants
conditioned upon increase in the number of shares of Common Stock underlying the plan);
(ii)&nbsp;the annual rate of grants of options under the 2005 Plan during calendar year
2007 and 2008, of 1,741,250 and 117,500, respectively; and (iii)&nbsp;the portion of the
Company&#146;s outstanding shares represented by equity compensation, including shares
subject to options. The proposed increase will provide the Company with additional options
for use in future grants. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
setting the termination date of the 2005 Plan, the Board considered (i) Nasdaq rules that
allow the automatic increases in the shares available under a plan based on a determined
formula, without the need for stockholder approval, provided that such plan does not have
a term in excess of ten years (unless stockholder approval is obtained every ten years);
and (ii) requirements imposed by Section 422 of the Internal Revenue Code of 1986, as
amended, or the Code, and the Treasury Regulations thereunder, for qualification of an
option as an &#147;incentive stock option&#148;, or ISO, including the requirements that
an option must be granted within ten years of the adoption date of the plan or the date of
stockholder approval. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board considers all the amendments to the 2005 Plan are equally important and therefore
the adoption of the Amended and Restated 2005 Stock Option Plan is brought to vote as one
single matter. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Summary of the 2005 Plan </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following summary of the material features of the Company&#146;s Amended and Restated 2005
Stock Option Plan (assuming its adoption is approved by stockholders) is qualified in its
entirety by reference to the complete text thereof attached as Appendix A. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
2005 Plan permits the issuance of equity-based awards, including incentive stock options,
nonqualified stock options, grants of Common Stock, whether or not subject to
restrictions, stock options, shares of Common Stock and unit for such shares of Common
Stock that qualify under Section 102 of the Israeli Tax Ordinance (New Version) 1961, or
the ITO, and stock options that qualify under Section 3(i) of the ITO . The 2005 Plan
initially reserved 75,000 shares of our Common Stock (adjusted to reflect reserve stock
split). On January 24, 2007 our Board of Directors amended the 2005 Stock Option Plan to
reserve for issuance an aggregate of 1,400,000 shares of our Common Stock; and on August
29, 2007, we reserved an additional 500,000 shares of Common Stock for the 2005 Plan; and
on August 28, 2008, we reserved an additional 90,000 of shares of our Common Stock,
totaling 1,990,000 shares of Common Stock. Stockholders are now asked to approve an
amendment to the 2005 Plan that calls, among other things, for the reservation of shares
of Common Stock equal to 16% of the number of shares of Common Stock issued and
outstanding immediately prior to the grant of any options to acquire shares, grant of
shares of Common Stock, units for such shares, or Award, on a Fully Diluted Basis. For
purposes of the 2005 Plan, the term &#147;Fully Diluted Basis&#148; means all issued and
outstanding share capital (where options shall be deemed outstanding share capital until
exercised) and all rights to acquire share capital including, without limitation, all
securities convertible or exercisable into shares of Common Stock being deemed so
converted and exercised, the conversion of any convertible stockholder loans into share
capital, with all outstanding warrants, options or any other right granted by the Company
to receive shares of the Company&#146;s share capital being deemed exercised in full. The
foregoing notwithstanding, the maximum number of shares that may be subject to incentive
stock options, or ISOs, granted under the 2005 Plan shall be 450,000, subject to
adjustment as provided in the 2005 Plan. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Purpose,
Eligible Individuals, Effective Date and Duration.</I></B><I></I> On November 21, 2005,
our Board of Directors adopted our 2005 Plan. The purpose of the 2005 Plan is to retain
the services of valued key employees and consultants of the Company and such other persons
and to encourage such persons to acquire a greater proprietary interest in the Company,
thereby strengthening their incentive to achieve the objectives of the stockholders of the
Company, to serve as an aid and inducement in the hiring of new employees and to provide
an equity incentive to consultants and other persons selected by the Board. Under the 2005
Plan, options and shares of Common Stock may be granted to our officers, directors,
employees and consultants or the officers, directors, employees and consultants of our
subsidiary. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Shares
Subject to the 2005 Plan. </I></B><I></I> The total number of shares of our Common Stock
that may be granted of aforesaid options or shares of Common Stock, may not exceed
1,990,000 shares, or, if the proposed amendment is approved, 16% of the number of shares
of Common Stock issued and outstanding immediately prior to the grant of such Awards, on a
Fully Diluted Basis, which is equal to 3,107,635 shares of Common Stock as of December 24,
2008. The shares may be authorized but unissued shares or treasury shares. The total
amount of Common Stock that may be granted under the 2005 Plan to any single person in any
calendar year may not exceed in the aggregate 1,000,000 shares. In addition, the maximum
number of shares of Common Stock that may be subject to ISOs granted under the 2005 Plan
shall be 450,000. To the extent that an Award lapses or is forfeited, the shares subject
to such Award will again become available for grant under the terms of the 2005 Plan. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of December 24, 2008, 1,947,853 Awards were outstanding. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Administration.
</I></B><I></I> Although the Board has the authority to administer the 2005
          Plan, it has the right to delegated this authority to a committee, which
          administers all of our equity-based compensation plans. Each member of such
          committee shall be a &#147;non-employee director&#148; within the meaning of
          Rule&nbsp;16b-3 promulgated under the Securities Exchange Act of 1934, as
          amended, and an &#147;outside director&#148; within the meaning of
          Section&nbsp;162(m) of the Code.  </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to the terms of the 2005 Plan, the Board has the authority to: (1)&nbsp;select or approve
Award recipients; (2)&nbsp;determine the terms and conditions of Awards, including the
price to be paid by a participant for any Common Stock; and (3)&nbsp;interpret the 2005
Plan and prescribe rules and regulations for its administration. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Stock
Options. </I></B><I></I> The Board may grant incentive stock options, nonqualified stock
options, or Options, under Section 102 or 3(i) of the ITO. The Board determines the number
of shares of Common Stock subject to each Option, provided that in no event the number of
shares of Common Stock that may be reserved pursuant to the exercise of Options granted to
any person under the 2005 Plan exceed 5% of the issued and outstanding shares of Common
Stock of the Company and that the aggregate fair market value of the shares of Common
Stock with respect to which ISOs are exercisable for the first time by a participant
during any calendar year shall not exceed $100,000. The Board determines the exercise
price of an Option, its duration and the manner and time of exercise. However, in no event
shall an Option be exercisable more than ten years following the grant date thereof. ISOs
may be issued only to employees of the Company or of a corporate subsidiary of ours, and
the exercise price must be at least equal to the fair market value of the Common Stock as
of the date the Option is granted. Further, an incentive stock option generally must be
exercised within ten years of grant. The Board, in its discretion, may provide the vesting
terms of any Option, provided that if no schedule is specified at the time of grant, the
Option shall vest as follows: (i) on the six month anniversary of the date of the grant,
the Option shall vest and shall become exercisable with respect to 25% of the Common Stock
to which it pertains; and (ii) on the seven month and each successive month anniversary to
and including the twenty-four month anniversary, the Option shall vest and become
exercisable with respect to an additional 1/24 of the Common Stock to which it pertains.
The vesting of one or more outstanding Options may be accelerated by the Board at such
times and in such amounts as it shall determine in its sole discretion. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
exercise price of an Option may be paid in cash or by certified or cashier&#146;s check,
in shares of Common Stock owned by the participant, or by means of a &#147;cashless
exercise&#148; procedure in which a broker transmits to us the exercise price in cash,
either as a margin loan or against the participant&#146;s notice of exercise and
confirmation by us that we will issue and deliver to the broker stock certificates for
that number of shares of Common Stock having an aggregate fair market value equal to the
exercise price. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options
granted under the 2005 Plan and the rights and privileges conferred by the 2005 Plan may
not be transferred, assigned, pledged or hypothecated in any manner (whether by operation
of law or otherwise) other than by will or by applicable laws of descent and distribution. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Stock
Grants. </I></B><I></I> If the amendments to the 2005 Plan are approved by stockholders,
the Board will be able to issue shares of Common Stock to participants, either with or
without restrictions, as determined by it in its discretion, as well as units for such
shares of Common stock with a specific vesting schedule. Restrictions may include
conditions that require the participant to forfeit the shares in the event that the holder
ceases to provide services to us. Unlike holders of Options, the recipient of a stock
grant, including a stock grant subject to restrictions, unless otherwise provided for in a
restricted stock agreement, has the rights of a stockholder of ours to vote and to receive
payment of dividends on our Common Stock. Holders of units to such shares of Common Stock
does not enjoy such rights. </FONT></P>

<p align=center>
<font size=2>- 6 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Effect
of Certain Corporate Transactions. </I></B><I></I> The number and class of shares for
which Options may be granted under the 2005 Plan, the number and class of shares covered
by each outstanding Award, the exercise price per share thereof (but not the total price),
and each such Option, shall all be proportionately adjusted for any increase or decrease
in the number of issued shares of Common Stock of the Company resulting from a subdivision
or consolidation of shares of Common Stock or any like capital adjustment, or the issuance
of any shares of Common Stock, or securities exchangeable for or convertible into Common
Stock, to the holders of all or substantially all of the outstanding Common Stock by way
of a stock dividend. Except as stated below, upon a merger (other than a merger of the
Company in which the holders of shares of Common Stock immediately prior to the merger
have the same proportionate ownership of shares of Common Stock in the surviving company
immediately after the merger), consolidation, acquisition of property or stock,
separation, reorganization (other than a mere re-incorporation or the creation of a
holding company) or liquidation of the Company, as a result of which the stockholders of
the Company receive cash, shares or other property in exchange for or in connection with
their shares of Common Stock, any Award granted under the 2005 Plan shall terminate, but
the holder shall have the right to exercise its Award immediately prior to any such
merger, consolidation, acquisition of property or shares, separation, reorganization or
liquidation, and to be treated as a stockholder of record for the purposes thereof, to the
extent the vesting requirements set forth in the Option agreement have been satisfied. If
the stockholders of the Company receive shares in the capital of another company, or
Exchange Shares, in exchange for their shares of Common Stock in any transaction involving
a merger (other than a merger of the Company in which the holders of shares of Common
Stock immediately prior to the merger have the same proportionate ownership of shares of
Common Stock in the surviving company immediately after the merger), consolidation,
acquisition of property or shares, separation or reorganization (other than a mere
re-incorporation or the creation of a holding company), all Options granted hereunder
shall be converted into Options to purchase Exchange Shares, unless the Company and the
company issuing the Exchange Shares, in their sole discretion, determine that any or all
such Options granted hereunder shall not be converted into Options to purchase Exchange
Shares, but instead shall terminate in accordance with, and subject to the holder&#146;s
right to exercise the holder&#146;s Options pursuant to, the provisions of the previous
sentence. The amount and price of converted Options shall be determined by adjusting the
amount and price of the Options granted hereunder in the same proportion as used for
determining the number of Exchange Shares the holders of the shares of Common Stock
receive in such merger, consolidation, acquisition of property or stock, separation or
reorganization. Unless accelerated by the Board, the vesting schedule set forth in the
option agreement shall continue to apply to the Options granted for the Exchange Shares. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Further
Amendments to the 2005 Plan. </I></B><I></I> Subject to additional consents and approvals
required under applicable law (including any rules of any applicable stock exchange or
stock quotation system of which the Company&#146;s shares of common stock are is traded),
the Board or the Board may, at any time, modify, amend or terminate this Plan or modify or
amend Awards granted under this Plan, including, without limitation, such modifications or
amendments as are necessary to maintain compliance with applicable laws. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Term
of the 2005 Plan. </I></B><I></I> Unless sooner terminated by the Board, this Plan shall
terminate on December 31, 2018. No Option may be granted after such termination or during
any suspension of this Plan. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>U.S.
          Tax Treatment. </B> The following description of the federal income tax
          consequences of Awards is general and does not purport to be complete. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Tax
Treatment of Options. </I></B><I></I> A participant realizes no taxable income when a
nonqualified stock option is granted. Instead, the difference between the fair market
value of the Common Stock acquired pursuant to an exercise of an Option and the exercise
price paid is taxed as ordinary compensation income when the Option is exercised. The
difference is measured and taxed as of the date of exercise. Gain on the subsequent sale
of the Common Stock acquired by exercise of the Option is taxed as short-term or long-term
capital gain, depending on the holding period after exercise. We receive no tax deduction
on the grant of a nonqualified stock option, but we are entitled to a tax deduction when
the participant recognizes ordinary compensation income on or after exercise of the
Option, in the same amount as the income recognized by the participant. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally,
a participant incurs no federal income tax liability on either the grant or the exercise
of an incentive stock option, although a participant will generally have taxable income
for alternative minimum tax purposes at the time of exercise equal to the excess of the
fair market value of the Common Stock subject to the Option over the exercise price.
Provided that the Common Stock is held for at least one (1) year after the date of
exercise of the Option and at least two (2) years after its date of grant, any gain
realized on a subsequent sale of the Common Stock will be taxed as long-term capital gain.
If the Common Stock is disposed of within a shorter period of time, the participant will
recognize ordinary compensation income in an amount equal to the difference between the
sales price and the exercise price or (if less) the difference between the fair market
value at the time of exercise and the exercise price. We receive no tax deduction on the
grant or exercise of an incentive stock option, but we are entitled to a tax deduction if
the participant recognizes ordinary compensation income on account of a premature
disposition of shares acquired on exercise of an incentive stock option, in the same
amount and at the same time as the participant recognizes income. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Tax
Treatment of Stock Grants. </I></B><I></I> A person who receives a stock grant without any
restrictions will recognize ordinary compensation income on the fair market value of the
Common Stock over the amount (if any) paid for the Common Stock. If the Common Stock is
subject to restrictions, the recipient generally will not recognize ordinary compensation
income at the time the award is received, but will recognize ordinary compensation income
when restrictions constituting a substantial risk of forfeiture lapse. The amount of such
income will be equal to the excess of the aggregate fair market value, as of the date the
restrictions lapse, over the amount (if any) paid for the Common Stock. Alternatively, the
participant may elect to be taxed, pursuant to Section&nbsp;83(b) of the Code, on the
excess of the fair market value of the Common Stock at the time of grant over the amount
(if any) paid for the Common Stock, notwithstanding any restrictions. All such taxable
amounts are deductible by us at the time and in the amount of the ordinary compensation
income recognized by the participant. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Section
162(m)           of the Code. </I></B><I></I> Section&nbsp;162(m) of the Code generally
disallows           an income tax deduction to public companies for compensation in
excess of           $1,000,000 paid in any year to our principal executive officer and
the three           other most highly compensated executive officers, but not including
our           principal financial officer, to the extent that this compensation is not
          &#147;performance-based&#148; within the meaning of Section&nbsp;162(m) of the
          Code. In the case of a stock plan, the performance-based exception is satisfied
          if, in addition to other requirements, the plan, including the amount of stock
          available for grant under the plan, is approved by stockholders, the grants are
          made by a committee of outside directors, and the amount of compensation a
          person can receive is based solely on an increase in the value of the Common
          Stock after grant. If the proposed amendments are approved by stockholders, the
          Company believes the requirements for the performance-based exception will
          continue to be satisfied with respect to shares awarded under the 2005 Plan.  </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Israeli Tax Treatment. </B> The
following description of the Israel income tax consequences of Awards is general and does
not purport to be complete. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the new Section 102 of the ITO&#146;s regulations, which came into effect on January 1,
2003, securities granted to employees will be subject to tax if granted through a trustee
or not. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Grant
Through a Trustee.</I></B> Grant through a trustee permits a choice between capital gains tax
track and compensation income tax track. </FONT> </P>



<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the capital gains tax track, any gain made on the sale of shares is subject to capital
gains tax at a current rate of 25%. However, a portion of the gain will be deemed
compensation income, i.e., a part of the gain is subject to capital gains tax, and part of
the gain is subject to income tax. The portion of the gain that will be deemed
compensation income is determined according to the average value of the shares as listed
on the stock exchange during the 30-day period prior to the grant date, less expenses. A
corporate tax deduction is available for the employer in the tax year in which withholding
is operated. The deductible amount is equal to the proportion of the gain deemed to be
compensation income. In order for gains to be treated as capital gains, the securities
must be held by a trustee for a period of two years from the date of the grant. If the
realization date (i.e., the earlier of the date of transfer of securities to the employee
and the date the securities are sold) occurs before this two year period has passed, the
individual&#146;s income for tax purpose will be deemed to be compensation income in full.
In this case, there would be no corresponding corporate tax deduction available to the
company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Grant
Not Through a Trustee.</I></B> </FONT> </P>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
case of issuance of securities made not through a trustee, of non-marketable securities
will not be subject to tax at grant or exercise. Ordinary income tax will be payable on
the sale of the securities. The taxable amount will be the sale proceeds less the amount
paid by the employee including any expenses related to the purchase. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
case of grant of securities having market value, the fair market value of the securities
is treated as compensation income, and subject to income tax and national security
contributions at the date of grant. Capital gains tax will be payable on the sale of the
securities. The taxable amount at sale will be the sale proceeds less the value that was
taxed at the date of grant (i.e., market value at grant) and any expenses related to the
purchase. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Grant
of Section 3(i) Securities.</I></B><I></I> Securities issued under Section 3(i) of the
ITO, would be granted to consultants and controlling shareholders (which are excluded from
the term employees under section 102 of the ITO). Section 3(i) securities would be taxed
at the day of exercise at ordinary income tax rate and at the day of sale of shares at
capital gain tax rate. </FONT></P>

<p align=center>
<font size=2>- 8 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Restricted
Stock and Restricted Stock Units. </I></B><I></I>Basically, restricted stocks are treated
as shares and restricted stock units are treated as share options. At the absence of such
ruling, the Israeli Tax Authority might consider the restricted stock and the restricted
stock units as grants made not through a trustee. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
October 30, 2008, the Board resolved to grant to certain employees, management and
directors Options to purchase an aggregate of 590,000 shares of our Common Stock at an
exercise price of $0.62 per share, which was based on the closing price of our stock as
traded on the Nasdaq Capital Market on October 29, 2008. The grants will be made pursuant
to and are conditioned upon the approval by our stockholders of an increase of the pool of
shares under our 2005 Plan, as described in this Item 2. The breakdown of the Options to
purchase an aggregate of 590,000 shares of our Common Stock is set forth in the following
table. </FONT></P>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Name and Position</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE align=left></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Number of Shares Underlying Options</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD WIDTH="5%"> </TD>
     <TD WIDTH="74%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2"><U>Named Executive Officers</U> </FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH="7%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Zami Aberman</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Chief Executive Officer, President and Co-Chairman</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>110,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT" colspan=4><FONT FACE="Times New Roman" SIZE=2>Shai Meretzki</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Former Chief Technology Officer of Pluristem Ltd.</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Yaky Yanay</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Chief Financial Officer and Secretary</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>55,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2"><U>All current executive officers as a group (2 persons)</U> </FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>165,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><U>All current directors who are not executive officers as a group (7 persons)</U> </FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>165,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT" colspan=4><FONT FACE="Times New Roman" SIZE="2"><U>Each nominee for election as a director (other than executive officers named above)</U> </FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Hava Meretzki</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>27,500</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Doron Shorrer</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>27,500</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Israel Ben-Yoram</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>27,500</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Isaac Braun</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>27,500</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Nachum Rosman</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>27,500</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Mark Germain</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>27,500</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Shai Pines</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>0</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2"><U>Each associate of such directors and executive officers</U> </FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><U>Each other person who received 5% of such Options</U> </FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>0</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2"><U>All employees, including all current officers who are not executive officers, as a group</U> </FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>260,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Except as specified above and below,
the benefits or amounts that may be received or allocated to any individual under the 2005
Plan, as proposed to be amended and restated, are not determinable. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options
to purchase Common Stock that have been granted under the 2005 Plan in the past, other
than those set forth above, are set forth in the following table. </FONT></P>

<p align=center>
<font size=2>- 9 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Name and Position</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE align=left></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Number of Shares Underlying Options</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD WIDTH="5%"> </TD>
     <TD WIDTH="74%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2"><U>Named Executive Officers</U> </FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH="7%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Zami Aberman</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Chief Executive Officer, President and Co-Chairman</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>407,500</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT" colspan=4><FONT FACE="Times New Roman" SIZE=2>Shai Meretzki</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Former Chief Technology Officer of Pluristem Ltd.</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>58,750</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Yaky Yanay</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Chief Financial Officer and Secretary</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>125,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2"><U>All current executive officers as a group (2 persons)</U> </FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>532,500</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><U>All current directors who are not executive officers as a group (7 persons)</U> </FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>601,250</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT" colspan=4><FONT FACE="Times New Roman" SIZE="2"><U>Each nominee for election as a director (other than executive officers named above)</U> </FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Hava Meretzki</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>66,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Doron Shorrer</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>87,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Israel Ben-Yoram</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>66,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Isaac Braun</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>66,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Nachum Rosman</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>36,250</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Mark Germain</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>280,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Shai Pines</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>0</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2"><U>Each associate of such directors and executive officers</U> </FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><U>Each other person who received 5% of such Options</U> </FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>0</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2"><U>All employees, including all current officers who are not executive officers, as a group</U> </FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>605,353</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>
<BR>

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

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition to the 2005 Plan, we have the 2003 Stock Option Plan, or the 2003 Plan. On
November 25, 2003, our Board of Directors adopted our 2003 Plan. Under the 2003 Plan,
options may be granted to our officers, directors, employees and consultants or the
officers, directors, employees and consultants of our subsidiary. Pursuant to the 2003
Plan, we reserved for issuance 20,500 shares of our Common Stock. As of December 24, 2008,
there were 10,501 shares of our Common Stock still available for future grant under the
plan. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table summarizes certain information regarding our equity compensation plans as
of June 30, 2008: </FONT></P>








<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Plan Category</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE align=left></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Number of securities to<BR>
be issued upon exercise<BR>
of outstanding options,<BR>
warrants and rights </FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Weighted-average<BR>
exercise price of<BR>
outstanding options,<BR>
warrants and rights </FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Number of securities<BR>
remaining available for<BR>
future issuance under<BR>
equity compensation<BR>
plans </FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD WIDTH="5%"> </TD>
     <TD WIDTH="46%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>2003 Stock Option Plan (equity</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH="5%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH="5%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH="5%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>compensation plan not approved</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>by stockholders)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>10,112</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 4.62</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>10,388</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>2005 Stock Option Plan (equity</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>compensation plan not approved</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>by stockholders)</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1,854,069</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2> 5.25</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>45,931</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Equity compensation plan</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>approved by stockholders</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Total</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1,864,181</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2> 5.24</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>56,319</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>
<BR>


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

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
affirmative vote of the holders of a majority of the votes present in person or
represented by proxy is required for the adoption of the Company&#146;s Amended and
Restated 2005 Stock Option Plan. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH="700" CELLPADDING="3" CELLSPACING="0" BORDER="1" ALIGN="CENTER">
<TR VALIGN=TOP>
<TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>The Board recommends a vote FOR the proposal to adopt the Amended and Restated 2005 Stock
Option Plan.</B> </FONT></TD>
</TR>
</TABLE>
<BR>

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

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Committees and Meetings
of Our Board of Directors </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board held ten meetings during Fiscal 2008. Throughout this period, each member of our
Board who was a director in Fiscal 2008, except for Mr. Shai Pines who just joined our
Board, attended or participated in at least 75% of the total number of regularly scheduled
meetings of our Board held during the period for which such person has been a director,
and the total number of meetings held by all committees of our Board on which each
director served during the periods such director served.&nbsp; Our Board has two standing
committees: the Audit Committee and the Compensation Committee. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compensation
Committee</U>. The members of our Compensation Committee are Doron Shorrer, Nachum Rosman
(who replaced Isaac Braun on June 10, 2008) and Israel Ben-Yoram. The Board has determined
that all of the members of the Compensation Committee are &#147;independent&#148; as
defined by the rules of the SEC and Nasdaq rules and regulations. Our Board has determined
that Doron Shorrer is the Chairman of the Compensation Committee The Compensation
Committee operates under a written charter that was approved by our Board on August 29,
2007. The charter is posted on our website at www.pluristem.com. The primary
responsibilities of our Compensation Committee include: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="2" face="Wingdings 2">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Reviewing,
negotiating and approving, or recommending for approval by our Board, the salaries and
incentive               compensation of our executive officers;</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="2" face="Wingdings 2">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Administering
our equity based plans and making recommendations to our Board with respect to our
              incentive-compensation plans and equity-based plans; and</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="2" face="Wingdings 2">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Periodically
reviewing and making recommendations to our board with respect to director compensation. </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>- 11 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Compensation Committee had no
obligation to, and did not, meet during Fiscal 2008. The Compensation Committee is
evaluating the appropriate practice it should adopt in connection with processes and
procedures for the consideration and determination of executive and director compensation. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Audit
Committee</U>. The members of our Audit Committee are Doron Shorrer, Nachum Rosman (who
replaced Isaac Braun on June 10, 2008) and Israel Ben-Yoram. Our Board has determined that
Doron Shorrer is the Chairman of the Audit Committee and Israel Ben-Yoram is an
&#147;audit committee financial expert&#148;, as defined by SEC rules and that all members
of the Audit Committee are &#147;independent&#148; as defined by the rules of the SEC and
the Nasdaq rules and regulations. The Audit Committee operates under a charter that was
approved by our Board on August 29, 2007. The charter is posted on our website at
www.pluristem.com. The primary responsibilities of our Audit Committee include: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="2" face="Wingdings 2">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Appointing,
compensating and retaining our registered independent accounting firm;</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="2" face="Wingdings 2">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Overseeing
the work performed by any independent accounting firm;</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="2" face="Wingdings 2">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Assisting
the Board in fulfilling its responsibilities by reviewing: (i) the financial reports
provided by us to               the SEC, our stockholders or to the general public, and
(ii) our internal financial and accounting               controls; and</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="2" face="Wingdings 2">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Recommending,
establishing and monitoring procedures designed to improve the quality and reliability of
the disclosure of our financial condition and results of operations. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
Audit Committee held four meetings during Fiscal 2008. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Nominating/Corporate
Governance Committee; Director Candidates</U>. The Company does not have a Nominating
Committee or Corporate Governance Committee or any committees of a similar nature, nor any
charter governing the nomination process. Our Board does not believe that such committees
are needed for a company our size. However, our independent directors will consider
stockholder suggestions for additions to our Board. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
nominees for the Board are selected and recommended to the Board by a majority of
independent directors of the Company. In considering whether to recommend any particular
candidate for inclusion in the Board&#146;s slate of recommended director nominees, our
independent directors will apply criteria including the candidate&#146;s integrity,
business acumen, knowledge of our business and industry, age, experience, diligence,
conflicts of interest and the ability to act in the interests of all stockholders.&nbsp;
No particular criteria will be a prerequisite or will be assigned a specific weight. We
believe that the backgrounds and qualifications of our directors, considered as a group,
should provide a composite mix of experience, knowledge and abilities that will allow the
Board to fulfill its responsibilities. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has never received communications from stockholders recommending individuals to
any of our independent directors. Therefore we do not yet have a policy with regard to the
consideration of any director candidates recommended by stockholders. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
Fiscal 2008, we did not pay a fee to any third party to identify or evaluate, or assist in
identifying or evaluating, potential nominees for our Board. We have not received any
recommendations from stockholders for Board nominees. All of the nominees for election at
the Meeting are current members of our Board. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>COMMUNICATING WITH OUR
BOARD OF DIRECTORS </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
Board will give appropriate attention to written communications that are submitted by
stockholders, and will respond if and as appropriate. Mr. Doron Shorrer, one of our
independent directors and the Chairman of our Audit Committee, with the assistance of our
outside counsel, is primarily responsible for monitoring communications from our
stockholders and for providing copies or summaries to the other directors as he considers
appropriate. Communications are forwarded to all directors if they relate to substantive
matters and include suggestions or comments that Mr. Shorrer considers to be important for
the directors to know.&nbsp; In general, communications relating to corporate governance
and long-term corporate strategy are more likely to be forwarded than communications
relating to ordinary business affairs, personal grievances and matters as to which we tend
to receive repetitive or duplicative communications. </FONT></P>

<p align=center>
<font size=2>- 12 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders
who wish to send communications on any topic to our Board should address such
communications to: Board of Directors c/o Pluristem Therapeutics Inc. at the address on
the first page of this proxy statement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ATTENDANCE AT SPECIAL
AND ANNUAL STOCKHOLDER MEETINGS </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
encourage our directors to attend our special and annual stockholders meetings. One
director attended our annual meeting of stockholders in 2008. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Summary Compensation
Table for Fiscal 2008 </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following Summary Compensation Table sets forth information concerning compensation during
Fiscal 2008 for services in all capacities awarded to, earned by or paid to Zami Aberman,
Yaky Yanay and Shai Meretzki, or the Named Executive Officers, during Fiscal 2008 and
fiscal year of 2007. </FONT></P>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Name and Principal<BR>Position </FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE align=left></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Fiscal<BR>Year </FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Salary ($)(1) </FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Option Awards<BR>($)(2) </FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Nonequity<BR>Incentive Plan<BR>Compensation ($) </FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>All Other<BR>Compensation ($) </FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Total ($) </FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
</TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD WIDTH="31%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Zami Aberman, Chief</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Executive Officer,</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>2008</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>312,565</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;(3)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>412,051</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>41,287</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;(7)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>Nil</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>765,903</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>President and Co-Chairman</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>2007</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>214,243</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;(3a)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>853,202</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>210,742</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>Nil</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>1,278,187</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Yaky Yanay, Chief</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Financial Officer and</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>2008</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>168,475</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>245,268</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>28,945</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;(7)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>21,982</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;(5)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>464,670</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Secretary</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>2007</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;(4)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>93,389</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>192,156</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>103,555</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>10,120</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;(5)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>399,220</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT" colspan=19><FONT FACE="Times New Roman" SIZE=2>Shai Meretzki, former</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Chief Technology</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>2008</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>212,965</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>Nil</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>Nil</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>Nil</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>212,965</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Officer, Pluristem Ltd.</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>2007</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>(6)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>188,240</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>154,937</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>Nil</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>Nil</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>343,177</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>
<BR>




<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          The salary payments were in NIS, the amounts were translated into US$ at the
          then current exchange rate of each payment. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          The dollar value recognized for the stock option awards was determined in
          accordance with SFAS123(R). Assumptions used in the calculations for these
          amounts are included in Note 2(i) to the consolidated financial statements of
          the Company for Fiscal 2008 and Fiscal 2007 included in the Company&#146;s
          Annual Report on Form 10-K for Fiscal 2008 and Fiscal 2007, respectively. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Also includes $15,463 paid to Mr. Aberman as compensation for services as a
          director. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3a)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Also includes $19,624 paid to Mr. Aberman as compensation for services as a
          director. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          On May 14, 2007 Mr. Yanay participated in an equity investment in the Company,
          and received 20,000 shares and 20,000 warrants, vested immediately, exercisable
          at $5 per share for five years. Such securities are not reflected in the table
          above. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Represents cost to the Company in connection with the car made available to Mr.
          Yanay. The Company also pays the tax associated with this benefit which is part
          of the amount in the salary column in the table above. </FONT></TD>
          </TR>
          </TABLE>
          <BR>



<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          On May 14, 2007 Mr. Meretzki participated in an equity investment in the
          Company, and received 100,000 shares and 100,000 Options, vested immediately,
          exercisable at $5 per share for five years. Such securities are not reflected in
          the table above. Mr.&nbsp;Meretzki served as our Chief Technology Officer until
          October 31, 2008. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Consists of amounts paid pursuant to agreements relating to completed
          transactions. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<p align=center>
<font size=2>- 13 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have the following written agreements and other arrangements concerning compensation with
our Named Executive Officers: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          A consulting agreement, or the Consulting Agreement, dated September 26, 2005
          with Zami Aberman, under which Mr. Aberman received a consulting fee of $13,000
          per month in New Israeli Shekels, or NIS, at the then current exchange rate. On
          September 18, 2006, the Board amended the Consulting Agreement by increasing the
          monthly consulting fee to an amount of NIS that equals $15,000 effective as of
          September 2006. The U.S. dollar rate will be not less then $4.35 per NIS. We
          further agreed to pay Mr. Aberman up to two percent (2%) of any financings we
          conducted. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
On
March 11, 2007, the Board approved an amendment to the Consulting Agreement as follows:
Mr. Aberman&#146;s engagement with us will not be for less than three (3) years, and his
bonus plan has been amended from a two percent (2%) bonus of amounts raised by the Company
through investments, debentures, loans or otherwise to one and a half percent (1.5%) from
amounts received by the Company from non diluting funding and strategic deals. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
On
August 29, 2007, the Board approved that Mr. Aberman&#146;s monthly consulting fee shall
be $20,000, starting in August 2007, and that upon receipt of a clinical trial approval,
the monthly consulting fee will be increased to $25,000. In addition, Mr. Aberman is
entitled once a year to receive an additional amount that equals the monthly consulting
fee. All amounts above are paid plus value added tax. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          An agreement with Yaky Yanay dated November 1, 2006, under which Mr. Yanay is
          paid 35,500 NIS per month. In addition, Mr. Yanay is entitled once a year to
          receive an additional amount that equals his monthly salary. Mr. Yanay is
          provided with a cellular phone and a company car pursuant to the terms of his
          agreement. We have agreed to pay Mr. Yanay up to 1.4% of any financings we
          conduct. It was further resolved that the bonus to which Mr. Yanay will be
          entitled will be amended to 1.4% from amounts received by the Company from non
          diluting funding and strategic deals. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          A consulting agreement dated November 24, 2005 with Meretzki Consulting Ltd., a
          company incorporated under the laws of the state of Israel and wholly owned by
          Dr. Shai Meretzki, under which Meretzki Consulting Ltd. is paid a monthly
          retainer of 66,000 NIS plus value added tax. Dr. Shai Meretzki is provided with
          a cellular phone pursuant to the terms of the consulting agreement. The
          agreement terminated on October 31, 2008. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
On
December 1, 2008, we issued a total of 248,536 shares of our Common Stock to certain
executive officers and directors at a price of $0.40 per share. The issuance was made in
exchange for a voluntary reduction in the cash compensation such officers and directors
were due to receive from the registrant in consideration for their services. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Outstanding Equity
Awards at the End of Fiscal 2008 </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table presents the outstanding equity awards owned as of June 30, 2008 by our
Named Executive Officers. </FONT></P>






<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=12><FONT FACE="Times New Roman" SIZE=1>Number of Securities Underlying Unexercised</FONT><HR WIDTH=98% SIZE=1 COLOR=BLACK NOSHADE></TH>
</TR>
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3 align=left><FONT FACE="Times New Roman" SIZE=1>Name</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Options<BR>
Exercisable</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Options<BR>
Unexercisable</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Exercise Price ($)</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Expiration Date</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD WIDTH="5%"> </TD>
     <TD WIDTH="17%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Zami Aberman</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="15%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>22,500</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;(1)</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="15%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="15%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>4.40</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="15%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>1/16/2016</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>22,500</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;(2)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>7,500</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>4.00</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>10/30/2016</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>177,087</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;(3)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>72,913</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>3.50</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>1/23/2017</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>26,250</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;(4)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>78,750</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>4.38</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>12/25/2017</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Yaky Yanay*</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>10,940</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;(5)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>1,560</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>4.00</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>9/17/2016</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>35,424</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;(6)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>14,576</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3.50</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1/23/2017</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>15,625</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;(4)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>46,875</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>4.38</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>12/25/2017</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Shai Meretzki*</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>7,500</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;(7)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>4.40</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1/11/2016</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>2,256</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;(8)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>4.40</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>1/1/2013</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>938</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;(9)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>312</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3.80</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>12/26/2016</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>35,424</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;(10)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>14,576</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>3.50</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>1/23/2017</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>
<BR>

<p align=center>
<font size=2>- 14 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Options under each award vest
over two (2) years from the date of grant, as follows: twenty-five percent (25%) vests six
months after the date of grant, and the remaining Options vest monthly, in equal
installments over eighteen (18) months. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1)
          The grant date for this award is January 17, 2006. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2)
          The grant date for this award is October 30, 2006. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3)
          The grant date for this award is January 24, 2007. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4)
          The grant date for this award is December 26, 2007. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5)
          The grant date for this award is September 18, 2006. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6)
          The grant date for this award is January 24, 2007. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7)
          The grant date for this award is January 12, 2006. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(8)
          The grant date for this award is December 30, 2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(9)
          The grant date for this award is December 27, 2006. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(10)
          The grant date for this award is January 24, 2007. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>* The above securities do not include
warrants received by certain named executives in consideration for their participation in
equity investments. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have no plans or arrangements in respect of remuneration received or that may be received
by our executive officers to compensate such officers in the event of termination of
employment (as a result of resignation, retirement, change of control) or a change of
responsibilities following a change of control, except for the following: (i) in
connection with the termination of his agreement on October 31, 2008, Dr. Shai Meretzki,
received an amount of $113,567, equal to six (6) months&#146; payment; (ii) Options issued
to Mr. Aberman which will become fully vested upon a change of control. In the event of
termination of the Consulting Agreement of Mr. Aberman, he will be entitled to fifty
percent (50%) acceleration of all of his unvested Options and to receive an adjustment fee
that equals the monthly consulting fees multiplied by three (3) plus the number of years
the Consulting Agreement is in force from the second year, but in any event no more than
nine (9) in the aggregate; and (iii) Mr. Yanay may be entitled, under Israeli law and
practice, to severance payment that equals a month&#146;s salary for each twelve (12)
months period of employment with the Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Aggregated
Option/Exercises in Last Fiscal Year and 2008 Fiscal Year End Option/Values </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
Fiscal 2008, no stock options were exercised by our named executive officers. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Long-Term Incentive
Plans-Awards in Last Fiscal Year </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have no long-term incentive plans, other than the 2005 Plan and the 2003 Stock Option
Plan. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pension, Retirement or
Similar Benefit Plans </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
are no arrangements or plans in which we provide pension, retirement or similar benefits
for directors or executive officers. Our directors and executive officers may receive
stock options at the discretion of our Board in the future. </FONT></P>

<p align=center>
<font size=2>- 15 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director Compensation
Table for Fiscal 2008 </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table provides information regarding compensation earned by, awarded or paid to
each person for serving as a director who is not a Named Executive Officer during Fiscal
2008. </FONT></P>




<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="680" ALIGN="CENTER">
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Name</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE align=left></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Fees Earned or Paid<BR>
in Cash</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Option Awards ($) (1)</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Total ($)</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD WIDTH="28%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Mark Germain</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="5%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="19%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>120,000</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="19%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>117,729</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="19%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>237,729</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Nachum Rosman</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>11,422</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>220,306</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>231,728</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Doron Shorrer</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>16,389</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>98,107</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>114,496</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Hava Meretzki</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>15,784</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>98,107</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>113,891</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Isaac Braun</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>16,259</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>98,107</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>114,366</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Israel Ben-Yoram</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>17,472</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>98,107</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>115,579</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Shai Pines</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE><BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The dollar value recognized for the stock option awards was determined in
          accordance with SFAS123(R). Assumptions used in the calculations for these
          amounts are included in Note 2(i) to the consolidated financial statements of
          the Company for Fiscal 2008 included in the Company&#146;s Annual Report on Form
          10-K for Fiscal 2008. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
reimburse our directors for expenses incurred in connection with attending board meetings
and provide the following compensation for directors: annual compensation of $10,000 plus
applicable taxes; meeting participation fees of $750 plus taxes per in-person meeting; and
for meeting participation by telephone, $350 per meeting. On May 17, 2007, the Board
decided that the U.S. dollar rate would be no less than NIS 4.25 per U.S. dollar. During
Fiscal 2008 we paid a total of $77,326 to directors as compensation. This amount does not
include: (i) compensation to Mr. Aberman in his capacity as a director which is reflected
in the Summary Compensation Table for Fiscal 2008 above, and (ii) a consulting fee of
$10,000 per month paid to Mr. Germain since March 11, 2007. In addition to the above, Mr.
Germain will be entitled to a bonus on a non diluting financing deal in an amount approved
by the Board provided that the aggregate bonus for all Company&#146;s executive officers
and directors shall not be higher than five percent (5%) of such financing. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of June 30, 2008, the directors held 606,397 Options of which 357,138 were exercisable. On
March 5, 2007 the Board approved to accelerate vesting of directors&#146; stock options in
the following circumstances: (1) termination of a director&#146;s position by the
stockholders will result in acceleration of one hundred percent (100%) of any unvested
Options, and (2) termination of a director&#146;s position by resignation will result in
acceleration of fifty percent (50%) of any unvested Options. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
than as described in the preceding two paragraphs, we have no present formal plan for
compensating our directors for their service in their capacity as directors. Directors are
entitled to reimbursement for reasonable travel and other out-of-pocket expenses incurred
in connection with attendance at meetings of our Board. The Board may award special
remuneration to any director undertaking any special services on behalf of our Company
other than services ordinarily required of a director. Other than as indicated in this
proxy statement, no director received and/or accrued any compensation for his or her
services as a director, including committee participation and/or special assignments
during Fiscal 2008. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table identifies our current executive officers: </FONT></P>




<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="700" ALIGN="CENTER">
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1>Name</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=1>Age</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>Capacities in Which Served</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=1>In Current Position Since</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="20%" ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=2>Zami Aberman</FONT></TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=2>54&nbsp;</FONT></TD>
     <TD WIDTH="50%" ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;Chief Executive Officer and President</FONT></TD>
     <TD WIDTH="20%" ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=2>September 26, 2005</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=2>Yaky Yanay</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=2>37&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;Chief Financial Officer and Secretary</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=2>November 1, 2006</FONT></TD></TR>
</TABLE>
<BR>

<p align=center>
<font size=2>- 16 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following
is a brief account of the education and business experience of our CFO, who is one of the
two executive officers we have (together with Mr. Zami Aberman, whose background is
described above under the caption &#147;Principal Employment and Experience of Director
Nominees&#148;) during at least the past five (5) years. </FONT></P>

<!-- MARKER FORMAT-SHEET="Exhibit Index Hang" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Yaky Yanay </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=83%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Prior to joining the Company, Mr. Yanay was the Chief Financial Officer of
Elbit Vision                           System Ltd. (EVSNF.OB), a company engaged in
automatic optical inspection. Mr. Yanay                           holds a bachelor's
degree with honors in business administration and accounting from the
                          college of management studies in Rishon Le Zion, Israel and is
a Certified Public                           Accountant in Israel. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some
of our directors and executive officers also serve in various capacities with our
subsidiary. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 16(a) Beneficial
Ownership Reporting Compliance </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
16(a) of the Exchange Act requires our executive officers and directors, and persons who
own more than 10% of our Common Stock, to file reports regarding ownership of, and
transactions in, our securities with the SEC and to provide us with copies of those
filings. Based solely on our review of the copies of such forms received by us, or written
representations from certain reporting persons, we believe that during Fiscal 2008, all
filing requirements applicable to our executive officers, directors and greater than 10%
beneficial owners were complied with, with the exception of (1) Mr. Yoram Ben-Israel who
failed to timely file a Form 4 reporting the purchase of 2,500 shares of Common Stock on
June 24, 2008 (and filed on July 3, 2008), and (2) Mr. Nahum Rosman who failed to timely
file a Form 4 reporting the grant dated November 11, 2007 of an option to purchase 36,250
shares of our Common Stock (and filed on April 1, 2008). </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the course of our oversight of the Company&#146;s financial reporting process, we have:
(1)&nbsp;reviewed and discussed with management the audited financial statements for
Fiscal 2008; (2)&nbsp;discussed with Kost, Forer, Gabbay &amp; Kassierer, a member of
Ernst &amp; Young Global, or E&amp;Y, the Company&#146;s independent registered public
accounting firm, the matters required to be discussed by the statement on Auditing
Standards No.&nbsp;61, Communication with Audit Committees, as amended (AICPA,
Professional Standards, Vol. 1, AU section 380), as adopted by the Public Company
Accounting Oversight Board; (3)&nbsp;received the written disclosures and the letter from
the independent registered public accounting firm required by applicable requirements of
the standards of the Public Company Accounting Oversight Board regarding the independent
accountant&#146;s communications with the Audit Committee concerning independence and has
discussed with the independent accountant the independent accountant&#146;s independence;
(4)&nbsp;discussed with the independent registered public accounting firm its
independence; and (5)&nbsp;considered whether the provision of nonaudit services by the
independent registered public accounting firm is compatible with maintaining its
independence and concluded that it is compatible at this time. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based
on the foregoing review and discussions, the Audit Committee recommended to the Board that
the audited financial statements be included in the Company&#146;s Annual Report on
Form&nbsp;10-K for Fiscal 2008, for filing with the SEC. </FONT></P>

<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By the Audit Committee of the Board
of <BR>Directors of Pluristem
Therapeutics Inc.<BR>Doron Shorrer, Chairman <BR>Nachum Rosman<BR>Israel Ben-Yoram</FONT></TD>
</TR>
</TABLE>
<BR>


<p align=center>
<font size=2>- 17 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>INFORMATION CONCERNING
OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
Audit Committee has retained E&amp;Y, as our independent registered public accounting firm
for Fiscal 2008. E&amp;Y performed the audit of our financial statements since inception.
Neither E&amp;Y nor any of its directors has any direct or indirect financial interest in
or any connection with us in any capacity other than as auditors. We do not expect to have
a representative of E&amp;Y to attend the Meeting. The following table summarizes the fees
E&amp;Y billed for the last two fiscal years: </FONT></P>







<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="600" ALIGN="CENTER">
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Twelve months ended on<BR>
June 30, 2007</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Twelve months ended on<BR>
June 30, 2008</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD WIDTH="47%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Audit Fees</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="6%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD WIDTH="20%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 40,000</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD WIDTH="20%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 50,000</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Audit-Related Fees</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>None</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>None</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Tax Fees</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 18,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 12,724</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>All Other Fees</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2> 36,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>  7,493</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#808080 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#808080 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Total Fees</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 94,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 70,217</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#808080 SIZE=3></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#808080 SIZE=3></TD><TD></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Audit
Fees</I>. These fees were comprised of professional services rendered in connection with
the audit of our consolidated financial statements for our annual report on Form 10-K and
the review of our quarterly consolidated financial statements for our quarterly reports on
Form 10-QSB that are customary under auditing standards generally accepted in the United
States. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Tax
Fees</I>. These fees relate to our tax compliance and tax planning. </FONT> </P>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>All
Other Fees</I>. These fees were comprised of fees relating to review of our registration
statement on Form S-3 and Form SB-2 and fees relating to the preparation and filing of an
application with the Israeli Office of Chief Scientist and ongoing advice in executing the
approved application. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pre-Approval Policies
and Procedures </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SEC
rules require that before Kost Forer Gabbay &amp; Kasierer, a member of Ernst &amp; Young
Global, is engaged by us to render any auditing or permitted non-audit related service,
the engagement be: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          approved by our audit committee; or </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          entered into pursuant to pre-approval policies and procedures established by the
          audit committee, provided the policies and procedures are detailed as to the
          particular service, the audit committee is informed of each service, and such
          policies and procedures do not include delegation of the audit committee&#146;s
          responsibilities to management. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
audit committee pre-approves all services provided by our independent auditors. All of the
above services and fees were reviewed and approved by the audit committee before the
services were rendered. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
audit committee has considered the nature and amount of fees billed by Kost Forer Gabbay
&amp; Kasierer, a member of Ernst &amp; Young Global, and believes that the provision of
services for activities unrelated to the audit is compatible with maintaining Kost Forer
Gabbay &amp; Kasierer&#146;s independence. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None
of the audit-related fees billed in Fiscal 2008 and during the twelve months ended on June
30, 2007 related to services provided under the de minimis exception to the SEC&#146;s
audit committee pre-approval requirements. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as disclosed herein, no director, executive officer, principal stockholder holding at
least 5% of our shares of Common Stock, or any family member thereof, had any material
interest, direct or indirect, in any transaction, during Fiscal 2008, or any currently
proposed transaction, in which the amount involved in the transaction exceeded or exceeds
the lesser of $120,000 or 1% of the average of our total assets at the year end for the
last two completed fiscal years. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr.
          Shai Meretzki was a signatory of the License Agreement with the Weizmann
          Institute of Science and the Technion-Israel Institute of Technology because he
          was an inventor of the technology listed in the License Agreement. He is also a
          signatory of the assignment agreements that we entered into on May 22, 2007.
Dr.           Meretzki received $367,969 pursuant to the assignment agreements in
exchange for           the assignment to us of all of his rights to the stem cell
technology. Dr.           Meretzki is our former Chief Executive Officer and an affiliate
of our company           through his indirect acquisition of shares of our Common Stock.
He is also the           founder and a former Chief Technology Officer of our subsidiary,
Pluristem Ltd.           The amount of consideration received by Dr. Meretzki was
determined as a result           of arm&#146;s length negotiation and represents the
value that management           believes would have resulted from negotiations with a
non-affiliate for the same           assignment of rights.  </FONT></P>

<p align=center>
<font size=2>- 18 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders
who wish to submit proposals for inclusion in our proxy statement and form of proxy
relating to our next annual meeting of stockholders must advise our Secretary of such
proposals in writing by August 22, 2009. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders
who wish to present a proposal at our next annual meeting of stockholders without
inclusion of such proposal in our proxy materials must advise our Secretary of such
proposals in writing by November 14, 2009. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
we do not receive notice of a stockholder proposal within this timeframe, our management
will use its discretionary authority to vote the shares they represent, as the Board may
recommend. We reserve the right to reject, rule out of order, or take other appropriate
action with respect to any proposal that does not comply with these requirements. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECURITY OWNERSHIP OF
CERTAIN BENEFICIAL OWNERS AND MANAGEMENT </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table sets forth certain information, to the best knowledge and belief of the
Company, as of December 24, 2008 (unless provided herein otherwise), with respect to
holdings of our Common Stock by (1) each person known by us to be the beneficial owner of
more than 5% of the total number of shares of our Common Stock outstanding as of such
date; (2) each of our directors, which includes all nominees; (3) each of the Named
Executive Officers; and (4) all of our directors and our current executive officers as a
group. </FONT></P>




<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Name and Address of Beneficial Owner</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE align=left></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE="1">Number of Shares<SUP>(1)</SUP> </FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Percentage</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH> </TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD WIDTH="5%"> </TD>
     <TD WIDTH="64%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2"><U>Directors and Named Executive Officers</U> </FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Zami Aberman</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Chief Executive Officer, President and Co-Chairman</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>496,661</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><SUP>(2)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>4.2</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT" colspan=7><FONT FACE="Times New Roman" SIZE=2>Shai Meretzki</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Former Chief Technology Officer of Pluristem Ltd.</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>297,016</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2">&nbsp;<SUP>(3)</SUP> </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>2.5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Hava Meretzki</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Director</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>61,736</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2">&nbsp;<SUP>(4)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>*</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT" colspan=7><FONT FACE="Times New Roman" SIZE=2>Doron Shorrer</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Director</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>80,810</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2">&nbsp;<SUP>(5)</SUP> </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>*</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Israel Ben-Yoram</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Director</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>63,320</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2">&nbsp;<SUP>(6)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>*</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT" colspan=7><FONT FACE="Times New Roman" SIZE=2>Isaac Braun</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Director</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>60,467</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2">&nbsp;<SUP>(7)</SUP> </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>*</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Nachum Rosman</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Director</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>28,162</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2">&nbsp;<SUP>(8)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>*</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
      <TD>&nbsp; </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT" colspan=7><FONT FACE="Times New Roman" SIZE=2>Mark Germain</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Director</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>303,750</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2">&nbsp;<SUP>(9)</SUP> </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>2.6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Shai Pines</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Director</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>*</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>*</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT" colspan=7><FONT FACE="Times New Roman" SIZE=2>Yaky Yanay</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Chief Financial Officer and Secretary</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>181,356</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2">&nbsp;<SUP>(10)</SUP> </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>1.6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><U>Directors and Executive Officers as a group (9 persons)</U> </FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1,573,278</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2">&nbsp;<SUP>(11)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>12.4</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>%</FONT></TD></TR>
</TABLE><BR>




<p align=center>
<font size=2>- 19 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN="BOTTOM">
     <TH> </TH>
     <TH COLSPAN="3"><FONT FACE="Times New Roman" SIZE=1>Name and Address of Beneficial Owner</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE align=left></TH>
     <TH COLSPAN="3"><FONT FACE="Times New Roman" SIZE="1">Number of Shares<SUP>(1)</SUP> </FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN="3"><FONT FACE="Times New Roman" SIZE=1>Percentage</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH> </TH>
     <TH COLSPAN="3"><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN="3"><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN="3"><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN="BOTTOM">
     <TH> </TH>
     <TH COLSPAN="3"><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN="3"><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN="3"><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN="BOTTOM">
     <TH> </TH>
     <TH COLSPAN="3"><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN="3"><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN="3"><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN="BOTTOM">
     <TH> </TH>
     <TH COLSPAN="3"><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN="3"><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN="3"><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD WIDTH="5%"> </TD>
     <TD WIDTH="63%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2"><U>5% Stockholders</U> </FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD> </TD>
     <TD ALIGN="LEFT" COLSPAN="7"><FONT FACE="Times New Roman" SIZE=2>Wood River Trust</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD> </TD>
     <TD ALIGN="LEFT" COLSPAN="7"><FONT FACE="Times New Roman" SIZE=2>1007 Orange St., Suite 1410</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD> </TD>
     <TD ALIGN="LEFT" COLSPAN="7"><FONT FACE="Times New Roman" SIZE=2>Nemours Building</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Wilmington, DE 19801</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>866,534</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2">&nbsp;<SUP>(12)</SUP> </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>7.5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>%</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT" colspan=7><FONT FACE="Times New Roman" SIZE=2>Meitav Investment House</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT" colspan=7><FONT FACE="Times New Roman" SIZE=2>4 Berkowitz Street, Museum Tower</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT" colspan=7><FONT FACE="Times New Roman" SIZE=2>Tel Aviv 61180</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT" ><FONT FACE="Times New Roman" SIZE=2>Israel</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>682,333</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2">&nbsp;<SUP>(13)</SUP> </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>5.8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>%</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD> </TD>
     <TD ALIGN="LEFT" COLSPAN="7"><FONT FACE="Times New Roman" SIZE=2>Cranshire Capital, L.P.</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD> </TD>
     <TD ALIGN="LEFT" COLSPAN="7"><FONT FACE="Times New Roman" SIZE=2>3100 Dundee Road, Suite 702</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Northbrok, IL 60062</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>1,043,478</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2">&nbsp;<SUP>(14)</SUP> </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>8.8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>%</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT" colspan=7><FONT FACE="Times New Roman" SIZE=2>Enable Growth Partners, L.P.</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT" colspan=7><FONT FACE="Times New Roman" SIZE=2>One Ferry Building, Suite 255</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>San Francisco, CA 94111</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>1,043,478</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2">&nbsp;<SUP>(15)</SUP> </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>8.8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>%</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD> </TD>
     <TD ALIGN="LEFT" COLSPAN="7"><FONT FACE="Times New Roman" SIZE=2>Bangor Holdings Ltd.</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD> </TD>
     <TD ALIGN="LEFT" COLSPAN="7"><FONT FACE="Times New Roman" SIZE=2>Wickman's Cay, Road Town</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Tortola, British Virgin Islands</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>1,500,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2">&nbsp;<SUP>(16)</SUP> </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>12.6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>%</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT" colspan=7><FONT FACE="Times New Roman" SIZE=2>Capela Overseas Ltd.</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT" colspan=7><FONT FACE="Times New Roman" SIZE=2>Christchurch Court 10 - 15</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Newgate Street London EC1A 7HD</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>590,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2">&nbsp;<SUP>(17)</SUP> </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>5.1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>%</FONT></TD></TR>
</TABLE><BR>




<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>*  less than 1%</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>(1)</SUP>
          Based on 11,458,662 shares of Common Stock issued and outstanding as of December
          24, 2008. Except as otherwise indicated, we believe that the beneficial owners
          of the Common Stock listed above, based on information furnished by such owners,
          have sole investment and voting power with respect to such shares, subject to
          community property laws where applicable. Beneficial ownership is determined in
          accordance with the rules of the SEC and generally includes voting or investment
          power with respect to securities. Shares of Common Stock subject to Options,
          warrants or rights to purchase or through the conversion of a security currently
          exercisable or convertible, or exercisable or convertible within 60 days, are
          reflected in the table above and are deemed outstanding for purposes of
          computing the percentage ownership of the person holding such Option or
          warrants, but are not deemed outstanding for purposes of computing the
          percentage ownership of any other person. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>(2)
          </SUP>Includes options to acquire 358,125 shares. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>(3)
          </SUP>Includes 24,010 shares that are registered under the name of A.R.Y.
          Holdings Ltd., which is owned and controlled by Dr. Shai Meretzki. Also includes
          options to acquire 61,006 shares of Common Stock and 100,000 warrants. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>(4)
          </SUP>Includes options to acquire 56,236 shares. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>(5)
          </SUP>Includes options to acquire 75,310 shares. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>(6)
          </SUP>Includes options to acquire 55,320 shares. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>(7)
          </SUP>Includes options to acquire 54,967 shares. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>(8)</SUP>
          Includes options to acquire 22,662 shares. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>(9)</SUP>
          Includes options to acquire 266,250 shares. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>(10)
          </SUP>Includes options to acquire 96,356 shares and 20,000 warrants. </FONT></P>

<p align=center>
<font size=2>- 20 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>(11)
          </SUP>Includes options to acquire 1,046,232 shares and 120,000 warrants. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>(12)
          </SUP>This information is as of June 13, 2007 and is based solely on Schedule
          13G/A filed with the SEC on August 6, 2007. Michael C. Doyle is the Trustee of
          Wood River Trust. Mr. Doyle and Wood River Trust share the voting and
          dispositive power over all the shares reported on Schedule 13G/A. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>(13)
          </SUP>This information is as of May 17, 2007 and is based solely on Schedule 13G
          filed with the SEC on December 17, 2007 by a filing group including Meitav
          Investment House Ltd. Based on the information provided in such Schedule 13G,
          the relevant members of the group, and their respective shared voting power are:
          Meitav Investment House Ltd., 682,333 shares, Meitav Gemel Ltd., 351,033 shares,
          Meitav Underwriting Ltd., 145,307 shares, Meitav Investment Management Ltd.,
          185,993 shares, Zvi Stepak, 682,333 shares and Shlomo Simanovsky, 682,333
          shares. Meitav Gemel and Meitav Investment are wholly owned subsidiaries of
          Meitav Investment House Ltd. Meitav Underwriting Ltd. is a majority owned
          subsidiary of Meitav Investment House Ltd. Messrs. Zvi Stepak and Shlomo
          Simanovsky are the sole stockholders, through intermediary entities, of Meitav
          Investment House Ltd. The address of all the members of the group is c/o Meitav
          Investment House Ltd., 4 Berkowitz Street, Museum Tower, Tel Aviv, 61180,
          Israel. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>(14)</SUP>
          This information is based solely on Schedule 13G filed with the SEC on August
          14, 2008. Each of Cranshire Capital, L.P., Downsview Capital, Inc. and Mitchell
          P. Kopin may be deemed to beneficially own the shares reported on Schedule 13G. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>(15)</SUP>
          This information is based solely on Schedule 13G filed with the SEC on October
          17, 2008 and additional information the Company believes to be true. Each Enable
          Capital Management, LLC and Mitchell S. Levin may also be deemed to beneficially
          own the shares reported on Schedule 13G. </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><SUP>(16)</SUP> Includes 450,000 warrants. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><SUP>(17)</SUP> Includes 20,000 warrants. </FONT></P>



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

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some
banks, brokers and other nominee record holders may be participating in the practice of
&#147;householding&#148; proxy statements and annual reports. This means that only one
copy of our proxy statement or annual report may have been sent to multiple stockholders
in your household.&nbsp; We will promptly deliver a separate copy of either document to
you if you call or write us at the address shown on the first page of this proxy
statement.&nbsp; If you want to receive separate copies of the annual report and any proxy
statement in the future or if you are receiving multiple copies and would like to receive
only one copy for your household, you should contact your bank, broker, or other nominee
record holders, or you may contact us at the address shown on the first page of this proxy
statement or by phone at 011-972-74-710-7171. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of the date of this proxy statement, our management knows of no matter not specifically
described above as to any action which is expected to be taken at the Meeting. The persons
named in the enclosed proxy, or their substitutes, will vote the proxies, insofar as the
same are not limited to the contrary, in their best judgment, with regard to such other
matters and the transaction of such other business as may properly be brought at the
Meeting. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>PLEASE DATE, SIGN AND RETURN THE
PROXY CARD AT YOUR EARLIEST CONVENIENCE IN THE ENCLOSED RETURN ENVELOPE.&nbsp; A PROMPT
RETURN OF YOUR PROXY CARD WILL BE APPRECIATED AS IT WILL SAVE THE EXPENSE OF FURTHER
MAILINGS.</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By Order of the Board of Directors<BR><BR>
<BR>/s/ Yaky Yanay<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Yaky Yanay<BR>Chief Financial Officer and Secretary</FONT></TD>
</TR>
</TABLE>
<BR>






<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Haifa, Israel<BR>December 29, 2008 </FONT></P>

<p align=center>
<font size=2>- 21 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>




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




<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="3"><B>PLURISTEM <Strike>LIFE
SYSTEMS,</Strike></B> <U> <b>THERAPEUTICS</b> </U> INC. <BR>AMENDED<b><u>AND RESTATED</u></b>
2005 STOCK OPTION PLAN <b><u>*</u></b></FONT> </H1>



<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This
<STRIKE>a<B><U></U></B></STRIKE><U><B>A</B></U><B>mended <U>and Restated</U></B><U></U> 2005 Stock
Option Plan (the &#147;Plan&#148;) provides for the grant of <B><U>Restricted Stock,
Restricted Stock Units and </U></B><U></U>options to acquire <STRIKE>common </STRIKE>shares <STRIKE>(the
&#147;<B><U></U></B></STRIKE><U><B>of </B></U>Common
<STRIKE>Shares&#148;)<B><U></U></B></STRIKE><U><B>Stock</B></U> in the capital of Pluristem <STRIKE>Life
Systems,<B><U></U></B></STRIKE><U><B>Therapeutics</B></U> Inc., a corporation formed under the
laws of the State of Nevada (the &#147;Corporation&#148;). <STRIKE>Stock
options<B><U></U></B></STRIKE><U><B>Awards</B></U> granted under this Plan will include: </FONT></P>




<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>stock
options<STRIKE>, </STRIKE>that qualify under Section 422 of the Internal Revenue
                    Code of 1986, as amended (the &#147;Code&#148;), which will be
referred to in                     this Plan as &#147;Incentive Stock Options&#148;; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>stock
options<B><U>, Restricted Stock and Restricted Stock Units,</U></B><U></U>                    that
qualify under Section 102 of the Israeli Tax Ordinance (New Version) 1961,
                    as amended and the rules and regulations promulgated thereunder (the
                    &#147;Ordinance&#148;), which will be referred to in this Plan as
                    &#147;<STRIKE>Section </STRIKE> 102 <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U>&#148;; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">stock
options<U><B>, Restricted Stock and Restricted Stock Units,</B></U> that
do not qualify under Section 422 of the Code , which will be referred to in
this Plan as &#147;Non-Qualified <Strike>Stock Options</Strike><U><B> Awards</B></U>&#148;;
and </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><STRIKE>Section
3(i) Options, being<B><U></U></B></STRIKE><U><B>stock</B></U>                    options<B><U>,
Restricted Stock and Restricted Stock Units</U></B><U></U> under
                    Section 3(i) of the Ordinance to consultants and Controlling
Shareholders that                     are excluded from the term &#147;Israeli Employee&#148; as
defined in Section                     3.1 herein<B><U>, which will be referred to in </U></B><U></U><B><U>this
Plan                     as &#147;3(i) Awards&#148;</U></B><U></U>. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Incentive Stock Options, <STRIKE>Section
</STRIKE>102 <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U>, Non-Qualified <STRIKE>Stock
Options<B><U></U></B></STRIKE><U><B>Awards</B></U> and Section 3(i)
<B> <STRIKE>Options</STRIKE><U>Awards,</U></B><U></U> granted under this Plan are collectively referred to
as &#147;<STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U>&#148;. </FONT></P>

<!-- MARKER FORMAT-SHEET="ITEMS" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>1.</B> </FONT> </TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>PURPOSE</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.1 &nbsp;&nbsp;&nbsp;&nbsp;The
purpose of this Plan is to retain the services of valued key employees and consultants of
the Corporation and such other persons as the Plan Administrator (as hereinafter defined)
shall select in accordance with Section 3 below, and to encourage such persons to acquire
a greater proprietary interest in the Corporation, thereby strengthening their incentive
to achieve the objectives of the shareholders of the Corporation, and to serve as an aid
and inducement in the hiring of new employees and to provide an equity incentive to
consultants and other persons selected by the Plan Administrator.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.2 &nbsp;&nbsp;&nbsp;&nbsp;This
Plan shall at all times be subject to all legal requirements relating to the
administration of <STRIKE>stock option plans<B><U></U></B></STRIKE><U><B>Awards</B></U>, if
any, under applicable corporate laws, applicable United States federal and state
securities laws, the Code, applicable Israeli tax laws, Israeli securities laws, Israeli
corporate laws, Israeli foreign exchange control laws the rules of any applicable stock
exchange or stock quotation system, and the rules of any other foreign jurisdiction
applicable to <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> granted to residents
therein (collectively, the &#147;Applicable Laws&#148;).  </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>* This version reflects the changes
to the Company&#146;s 2005 Stock Option Plan in the form filed with the Securities and
Exchange Commission on May 24, 2007 as exhibit 99.1 to the Company&#146;s current report
on Form 8-K. </FONT></P>


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




<!-- MARKER FORMAT-SHEET="ITEMS" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>2.</B> </FONT> </TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>ADMINISTRATION</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.1 &nbsp;&nbsp;&nbsp;&nbsp;This
Plan shall be administered initially by the board of directors of the Corporation (the
&#147;Board&#148;), except that the Board may, in its discretion, establish a committee
composed of two (2) or more members of the Board or two (2) or more other persons to
administer the Plan, which committee (the &#147;Committee&#148;) may be an executive,
compensation or other committee, including a separate committee especially created for
this purpose. The Board or, if applicable, the Committee is referred to herein as the
&#147;Plan Administrator&#148;. </FONT></P>


<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.2 &nbsp;&nbsp;&nbsp;&nbsp;If and
so long as the <B><U>shares of </U></B><U></U>Common <STRIKE>Shares is<B><U></U></B></STRIKE><U><B>Stock
are</B></U> registered under Section 12(b) or 12(g) of the Securities Exchange Act of
1934, as amended (the &#147;Exchange Act&#148;) and the Corporation wishes to grant
Incentive Stock Options, then the Board shall consider in selecting the Plan
Administrator and the membership of any Committee, with respect to any persons subject or
likely to become subject to Section 16 of the Exchange Act, the provisions regarding (a)
&#147;outside directors&#148; as contemplated by Section 162(m) of the Code, and (b)
&#147;Non-Employee Directors&#148; as contemplated by Rule 16b-3 under the Exchange Act.  </FONT></P>


<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.3 &nbsp;&nbsp;&nbsp;&nbsp;The
Committee shall have the powers and authority vested in the Board hereunder (including
the power and authority to interpret any provision of the Plan or of any Option). The
members of any such Committee shall serve at the pleasure of the Board. A majority of the
members of the Committee shall constitute a quorum, and all actions of the Committee
shall be taken by a majority of the members present. Any action may be taken by a written
instrument signed by all of the members of the Committee and any action so taken shall be
fully effective as if it had been taken at a meeting.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.4 &nbsp;&nbsp;&nbsp;&nbsp;Subject
to the provisions of this Plan and any Applicable Laws, and with a view to accomplishing
the purpose of the Plan, the Plan Administrator shall have sole authority, in its
absolute discretion, to:  </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>construe
and interpret the terms of the Plan and any <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> granted
pursuant to this Plan; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>define
the terms used in the Plan; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>prescribe,
amend and rescind the rules and regulations relating to this Plan; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>correct
any defect, supply any omission or reconcile any inconsistency in this
                    Plan; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(e) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>grant
<STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> under this Plan, except
                    grants to directors, the CEO, the CFO and the CTO of the Corporation,
which will                     be granted by the Board as a whole<B><U> if required by
Applicable                     Law</U></B><U></U>; </FONT></TD>
</TR>
</TABLE>
<BR>


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


<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(f) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>determine
the individuals to whom <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> shall be
granted under this                     Plan and whether the     <STRIKE>Option</STRIKE>   <B><U> Award</U></B><U></U> is
granted as an Incentive                     Stock Option, <STRIKE>Section </STRIKE>102 <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U>,
                    a Non-Qualified <STRIKE>Stock Option<B><U></U></B></STRIKE><U><B>Awards,</B></U> or
                    Section 3(i) <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U>; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(g) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>make
an election under Section 102(b)(1) or (2) of the Ordinance; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(h) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>determine
the time or times at which <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> shall be
granted under this                     Plan; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>determine
the number of <B><U>shares of </U></B><U></U>Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> subject
to each <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U>, the exercise price of each
<STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U>, the duration of each <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> and
the times at which each <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award </B></U> shall become
<B><U>vested and </U></B><U></U>exercisable; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(j) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>determine
all other terms and conditions of the <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U>;
and </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(k) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>make
all other determinations and interpretations necessary and advisable for
                    the administration of the Plan. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.5 &nbsp;&nbsp;&nbsp;&nbsp;All
decisions, determinations and interpretations made by the Plan Administrator shall be
binding and conclusive on all participants in the Plan and on their legal
representatives, heirs and beneficiaries.  </FONT></P>

<!-- MARKER FORMAT-SHEET="ITEMS" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>3.</B> </FONT> </TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>ELIGIBILITY</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.1  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Definitions.
In this agreement:</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;<B>Affiliate</B>&#148; means
any &#147;employing company&#148; within the meaning of Section 102(a) of the Ordinance.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;<B>Controlling
Shareholder</B>&#148; shall have the meaning ascribed to it in Section 32(9) of the
Ordinance.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&#147;Israeli Employee&#148;</B>
means a person who is employed by the Corporation or its Affiliates in Israel<B>,</B>
including an individual who is serving as a director or an office holder, but excluding a
Controlling Shareholder. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&#147;Related
Corporation</B>&#148; means any corporation (other than the Corporation) that is a
&#147;Parent Corporation&#148; of the Corporation or &#147;Subsidiary Corporation&#148; of
the Corporation, as those terms are defined in Sections 424(e) and 424(f), respectively,
of the Code (or any successor provisions) and the regulations thereunder (as amended from
time to time). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.2 &nbsp;&nbsp;&nbsp;&nbsp;Incentive
Stock Options may be granted to any individual who, at the time such Option is granted,
is an employee of the Corporation or any Related Corporation (as hereinafter defined) (an
&#147;Employee&#148;).  </FONT></P>


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



<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.3 &nbsp;&nbsp;&nbsp;&nbsp;Non-Qualified
<STRIKE>Stock Options<B><U></U></B></STRIKE><U><B>Awards,</B></U> may be granted to Employees,
and to such other persons who are not Employees as the Plan Administrator shall select,
subject to any Applicable Laws.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3.4 &nbsp;&nbsp;&nbsp;&nbsp;<Strike>Section
</Strike>102 <Strike>Options</Strike> <B><U>  Awards </U></B>  may be granted to Israeli Employees in accordance with Section 4 herein. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.5 &nbsp;&nbsp;&nbsp;&nbsp;Section
 3(i) <Strike>Options</Strike> <B><U>  Awards </U></B>  may be granted  to  consultants  and  Controlling  Shareholders
 that do not qualify as Israeli Employees. </FONT></P>




<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.6&nbsp;&nbsp;&nbsp;&nbsp;<STRIKE>Options</STRIKE><U><B>Awards</B></U> may
be granted in substitution for outstanding <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> of
another corporation in connection with the merger, consolidation, acquisition of property
or stock or other reorganization between such other corporation and the Corporation or
any subsidiary of the Corporation. <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> also
may be granted in exchange for outstanding <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U>.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.7 &nbsp;&nbsp;&nbsp;&nbsp;Any
person to whom an <STRIKE>Option<B><U></U></B></STRIKE><U><B>option</B></U> is granted under
this Plan is referred to as <STRIKE>an &#147;Optionee<B><U></U></B></STRIKE><U><B>a &#147;Participant</B></U>&#148;.
Any person who is the owner of an <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> is
referred to as a &#147;Holder&#148;.  </FONT></P>



<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>4.</B> </FONT> </TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>DESIGNATION
OF <STRIKE>OPTIONS</STRIKE>AWARDS PURSUANT TO SECTION 102 (RELEVANT ONLY TO ISRAELI EMPLOYEES)</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.1 &nbsp;&nbsp;&nbsp;&nbsp;The
Corporation may designate <STRIKE>Section </STRIKE>102 <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> granted
to Israeli Employees pursuant to Section 102 of the Ordinance as Unapproved 102 <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> (means
an Option granted pursuant to Section 102(c) of the Ordinance and not held in trust by a
Trustee) or Approved 102 <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> (means an
<STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> granted pursuant to Section 102(b) of
the Ordinance and held in trust by a Trustee for the benefit of the  <strike>Optionee</strike><U><B>Participant</B></U>).  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.2 &nbsp;&nbsp;&nbsp;&nbsp;The
grant of Approved 102 <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> shall be made
under this Plan adopted by the Board, and shall be conditioned upon the approval of this
Plan by the Israeli Tax Authorities (the &#147;<B>ITA</B>&#148;).  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.3 &nbsp;&nbsp;&nbsp;&nbsp;Approved
102 <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> may either be classified as
Capital Gain <STRIKE>Option &#147;<B>CGO<U></U></B></STRIKE><U><B>Award (&#147;CGA</B></U>&#148;)
or Ordinary Income <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U>(&#147;<B><STRIKE>OIO<U></U></STRIKE><U>OIA</U></B><U></U>&#148;).  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.4 &nbsp;&nbsp;&nbsp;&nbsp;Approved
102 <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> elected and designated by the
Corporation to qualify under the capital gain tax treatment in accordance with the
provisions of Section 102(b)(2) shall be referred to herein as <B><STRIKE>CGO<U></U></STRIKE><U>CGA</U></B><U></U>.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.5 &nbsp;&nbsp;&nbsp;&nbsp;Approved
102 <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> elected and designated by the
Corporation to qualify under the ordinary income tax treatment in accordance with the
provisions of Section 102(b)(1) shall be referred to herein as <B><STRIKE>OIO<U></U></STRIKE><U>OIA</U></B><U></U>.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.6 &nbsp;&nbsp;&nbsp;&nbsp;The
Corporation&#146;s election of the type of Approved 102 <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> as
<STRIKE>CGO<B><U></U></B></STRIKE><U><B>CGA</B></U> or <STRIKE>OIO<B><U></U></B></STRIKE><U><B>OIA</B></U>granted
to Employees (the &#147;<B>Election</B>&#148;), shall be appropriately filed with the ITA
before the Date of Grant of an Approved 102 <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U>.
Such Election shall become effective beginning the first Date of Grant of an Approved 102
OptionAward under this Plan and shall remain in effect at least until the end of the year
following the year during which the Corporation first granted Approved 102 <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U>.
The Election shall obligate the Corporation to grant <I>only</I> the type of Approved 102
<STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> it has elected, and shall apply to
all <strike>Optionees</strike><U><b>Participants</b></U> who were granted Approved 102 <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> during
the period indicated herein, all in accordance with the provisions of Section 102(g) of
the Ordinance. For the avoidance of doubt, such Election shall not prevent the
Corporation from granting Unapproved 102 <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> simultaneously.  </FONT></P>


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


<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.7 &nbsp;&nbsp;&nbsp;&nbsp;All
Approved 102 <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> must be held in trust
by a Trustee (means any entity appointed by the Corporation to serve as a trustee and
approved by the ITA, all in accordance with the provisions of Section 102(a) of the
Ordinance, as described in Section 5 below (the &#147;<B>Trustee</B>&#148;)).  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.8 &nbsp;&nbsp;&nbsp;&nbsp;For the
avoidance of doubt, the designation of Unapproved 102 <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> and
Approved 102  <strike>Options</strike><B><U>Awards</U></B><U></U> shall be subject to the terms and
conditions set forth in Section 102 of the Ordinance and the regulations promulgated
thereunder.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.9 &nbsp;&nbsp;&nbsp;&nbsp;With
regards to Approved 102 <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U>, the
provisions of the Plan and/or the <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> Agreement
shall be subject to the provisions of Section 102 and the Tax Assessing Officer&#146;s
permit, and the said provisions and permit shall be deemed an integral part of the Plan
and of the <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> Agreement. Any provision
of Section 102 and/or the said permit which is necessary in order to receive and/or to
keep any tax benefit pursuant to Section 102, which is not expressly specified in the
Plan or the <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> Agreement, shall be
considered binding upon the Corporation and the <STRIKE> Optionees </STRIKE><B><U></U></B><U><B>Participants</B></U>.  </FONT></P>

<!-- MARKER FORMAT-SHEET="ITEMS" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>5.</B> </FONT> </TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>TRUSTEE</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.1 &nbsp;&nbsp;&nbsp;&nbsp;Approved
102 <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> which shall be granted under
the Plan and/or any <STRIKE>Shares<B><U></U></B></STRIKE><U><B>shares</B></U> allocated or
issued upon exercise of such Approved 102 <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> and/or
other shares received subsequently following any realization of rights, including,
without limitation, bonus shares, shall be allocated or issued to the Trustee and held
for the benefit of the <STRIKE>Optionees<B><U></U></B></STRIKE><U><B>Participants</B></U> for
such period of time as required by Section 102 or any regulations, rules or orders or
procedures promulgated thereunder (the &#147;<B>Holding Period</B>&#148;). In the
case the requirements for Approved 102 <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> are
not met, then the Approved 102 <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> may
be treated as Unapproved 102 <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U>, all
in accordance with the provisions of Section 102 and regulations promulgated thereunder.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.2 &nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
anything to the contrary, the Trustee shall not release any <STRIKE>Shares<B><U></U></B></STRIKE><U><B>shares</B></U> allocated
or issued upon exercise of Approved 102 <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> prior
to the full payment of the <STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant</B></U>&#146;s
tax liabilities arising from Approved 102 <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> which
were granted to him and/or any <STRIKE>Shares<B><U></U></B></STRIKE><U><B>shares</B></U> allocated
or issued upon exercise <B><U>or vesting </U></B><U></U>of such <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards
as the case my be</B></U>.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.3 &nbsp;&nbsp;&nbsp;&nbsp;Upon
receipt of Approved 102 <STRIKE>Option<B><U></U></B></STRIKE><U><B>Awards</B></U>, the
Optionee will sign an undertaking to release the Trustee from any liability in respect of
any action or decision duly taken and bona fide executed in relation with the Plan, or
any Approved 102 <STRIKE>Option<B><U></U></B></STRIKE><U><B>Awards</B></U> or Share granted to
him thereunder.  </FONT></P>


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


<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.4 &nbsp;&nbsp;&nbsp;&nbsp;With
respect to any Approved 102 <STRIKE>Option<B><U></U></B></STRIKE><U><B>Awards</B></U>, subject
to the provisions of Section 102 and any rules or regulation or orders or procedures
promulgated thereunder, <STRIKE>an Optionee<B><U></U></B></STRIKE><U><B>a Participant</B></U> shall
not sell or release from trust any <STRIKE>Share<B><U></U></B></STRIKE><U><B>Award and any
share</B></U> received upon the exercise <B><U>or vesting </U></B><U></U>of an Approved
102 <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award </B></U>and/or any share received
subsequently following any realization of rights, including without limitation, bonus
shares, until the lapse of the Holding Period required under Section 102 of the
Ordinance. Notwithstanding the above, if any such sale or release occurs during the
Holding Period, the sanctions under Section 102 of the Ordinance and under any rules or
regulation or orders or procedures promulgated thereunder shall apply to and shall be
borne by such <STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant.</B></U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.5 &nbsp;&nbsp;&nbsp;&nbsp;With
respect to all <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Awards,</B></U> (but excluding, for
avoidance of any doubt, any unexercised   <strike>Options</strike><B><U>options and any unvested Restricted
Stock Units</U></B><U></U>) allocated or issued upon the exercise of Options purchased by
the <STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant, or issued to the Participant
pursuant to the Vesting of Restricted Stock Units,</B></U> and held by the <STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant</B></U> or
by the Trustee, as the case may be, the <STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant</B></U> shall
be entitled to receive dividends in accordance with the quantity of such <STRIKE>Shares<B><U></U></B></STRIKE><U><B>shares</B></U>,
subject to the provisions of the Corporation&#146;s incorporation documents (and all
amendments thereto) and subject to any applicable taxation on distribution of dividends,
and when applicable subject to the provisions of Section 102.  </FONT></P>

<!-- MARKER FORMAT-SHEET="ITEMS" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>6.</B> </FONT> </TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>STOCK</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.1 &nbsp;&nbsp;&nbsp;&nbsp;The Plan
Administrator is authorized to grant <STRIKE>Options to acquire up to a total of 280,000,000
Common Shares. The number of Common Shares with respect to which Options<B><U></U></B></STRIKE><U><B>Awards
to acquire shares of Common Stock, shares of Restricted Stock and Restricted Stock Units
in a number not exceeding 16% of the number of shares of Common Stock of the Corporation
issued and outstanding immediately prior to the grant of such Awards on a Fully Diluted
Basis. For purposes of this Section 6.1, the term &#147;Fully Diluted Basis&#148; means
all issued and outstanding share capital (where options shall be deemed outstanding share
capital until exercised) and all rights to acquire share capital including, without
limitation, all securities convertible or exercisable into shares of Common Stock being
deemed so converted and exercised, the conversion of any convertible stockholder loans
into share capital, with all outstanding warrants, options or any other right granted by
the Corporation to receive shares of the Corporation&#146;s share capital being deemed
exercised in full. The foregoing notwithstanding, the maximum number of shares that may
be subject to Incentive Stock Options granted under the Plan shall be 450,000, subject to
adjustment as provided in Section 7.1(m). Shares of Common Stock with respect to which
Awards</B></U> may be granted hereunder <STRIKE>is<B><U></U></B></STRIKE><U><B>are</B></U> subject
to adjustment as set forth in Section 7.1(m) hereof. In the event that any outstanding <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> expires
or is terminated for any reason, the <B><U>shares </U></B><U></U>Common Shares allocable
to the unexercised portion of such <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> may
again be subject to an <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> granted to the
same <STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant or Holder</B></U> or to a
different person eligible under Section 3 of this Plan<STRIKE>; provided however, that any
cancelled Options will be counted against the maximum number of Common Shares with
respect to which Options may be granted to any particular person as set forth in Section
3 hereof</STRIKE>.  </FONT></P>


<p align=center>
<font size=2>A - 6</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>6.2</B></U> &nbsp;&nbsp;&nbsp;&nbsp;<U><B>The
maximum number of shares of Common Stock for which Options may be granted to any person
in any calendar year shall be 1,000,000.</B></U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="ITEMS" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>7.</B> </FONT> </TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>TERMS
AND CONDITIONS OF <STRIKE>OPTIONS</STRIKE>AWARDS</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.1 &nbsp;&nbsp;&nbsp;&nbsp;Each <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> granted
under this Plan shall be evidenced by a written agreement approved by the Plan
Administrator (each, an &#147;Agreement&#148;). Agreements may contain such provisions,
not inconsistent with this Plan or any Applicable Laws, as the Plan Administrator in its
discretion may deem advisable. All <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> also
shall comply with the following requirements:  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Number
of <STRIKE>Shares<B><U></U></B></STRIKE><U><B>shares of Common Stock underlying the
          Award</B></U> and Type of <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award.</B></U> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Each
Agreement shall state the number of <B><U>shares of </U></B><U></U>Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> to
which it pertains and whether the <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> is
intended to be an Incentive Stock Option, Section 102 <STRIKE>Option<B><U></U></B></STRIKE><U><B>Awards</B></U> <STRIKE>(CGO<B><U></U></B></STRIKE><U><B>CGA</B></U> or <STRIKE>OIO<B><U></U></B></STRIKE><U><B>OIA</B></U>)
or a Non-Qualified <STRIKE>Stock Option<B><U></U></B></STRIKE><U><B>Awards</B></U>; <I>provided
that</I>:  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
number of Common Shares that may be reserved pursuant to the exercise of <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> granted
to any person shall not           exceed 5% of the issued and outstanding Common Shares
of the Corporation;  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>in
the absence of action to the contrary by the Plan Administrator in connection
          with the grant of an <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U>, all
<STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> shall be Non-Qualified <STRIKE>Stock
          Options<B><U></U></B></STRIKE><U><B>Awards</B></U>, Unapproved 102 <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> or
Section 3(i) <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U>, as the case maybe;  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
aggregate fair market value (determined at the Date of Grant, as defined           below)
of the <B><U>shares of </U></B><U></U> Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> with
respect to which Incentive           Stock Options are exercisable for the first time by
the Optionee during any           calendar year (granted under this Plan and all other
Incentive Stock Option           plans of the Corporation, a Related Corporation or a
predecessor corporation)           shall not exceed U.S.$100,000, or such other limit as
may be prescribed by the           Code as it may be amended from time to time (the &#147;Annual
Limit&#148;); and  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iv) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>any
portion of an <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> which exceeds
          the Annual Limit shall not be void but rather shall be a Non-Qualified <STRIKE>Stock
          Option<B><U></U></B></STRIKE><U><B>Award</B></U>.  </FONT></TD>
</TR>
</TABLE>
<BR>

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


<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date
of Grant </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Each
Agreement shall state the date the Plan Administrator has deemed to be the effective date
of <B><U>grant of </U></B><U></U>the <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> for
purposes of this Plan (the &#147;Date of Grant&#148;).<STRIKE> Option Price</STRIKE> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exercise
Price </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Each
Agreement shall state the price per <B><U>shares of </U></B><U></U>Common <STRIKE>Share at<B><U></U></B></STRIKE><U><B>Stock
to</B></U> which <STRIKE>it<B><U></U></B></STRIKE><U><B>an Award</B></U> is exercisable<B><U> (if
applicable)</U></B><U></U>. The Plan Administrator shall act in good faith to establish
the exercise price in accordance with Applicable Laws; <I>provided</I> that:  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
per share exercise price for an Incentive Stock Option or any Option granted           to
a &#147;covered employee&#148; as such term is defined for purposes of           Section
162(m) of the Code shall not be less than the fair market value per           Common
Share at the Date of Grant as determined by the Plan Administrator in           good
faith;  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>with
respect to Incentive Stock Options granted to greater-than-ten percent           (&gt;10%)
shareholders of the Corporation (as determined with reference to           Section 424(d)
of the Code), the exercise price per share shall not be less than           one hundred
ten percent (110%) of the fair market value per Common <STRIKE>Share<B><U></U></B></STRIKE><U><B>Stock</B></U> at
the Date of Grant as determined           by the Plan Administrator in good faith; and  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Options
granted in substitution for outstanding options of another corporation           in
connection with the merger, consolidation, acquisition of property or stock           or
other reorganization involving such other corporation and the Corporation or
          any subsidiary of the Corporation may be granted with an exercise price equal
to           the exercise price for the substituted option of the other corporation,
subject           to any adjustment consistent with the terms of the transaction pursuant
to which           the substitution is to occur.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iv) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>solely
for the purpose of determining the tax liability pursuant to Section           102(b)(3)
of the Ordinance, if at the date of grant the Corporation&#146;s           shares are
listed on any established stock exchange or a national market system           or if the
Corporation&#146;s shares will be registered for trading within ninety           (90)
days following the date of grant of the <STRIKE>CGOs<B><U></U></B></STRIKE><U><B>CGAs</B></U>,
the fair market value of the Shares           at the date of grant shall be determined in
accordance with the average value of           the Corporation&#146;s shares on the
thirty (30) trading days preceding the date           of grant or on the thirty (30)
trading days following the date of registration           for trading, as the case may
be.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Duration
of <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
At
the time of the grant of the <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U>, the
Plan Administrator shall designate, subject to Section 7.1(g) below, the expiration date
of the <STRIKE>Option<B><U></U></B></STRIKE><U><B>Awards</B></U>, which date shall not be
later than 10 years from the Date of Grant; <I>provided</I>, that the Plan Administrator
decided otherwise in specific <STRIKE>option agreements<B><U></U></B></STRIKE><U><B>Award
Agreements</B></U> or, that the expiration date of any Incentive Stock Option granted to a
greater-than-ten percent (&gt;10%) shareholder of the Corporation (as determined with
reference to Section 424(d) of the Code) shall not be later than five (5) years from the
Date of Grant. In the absence of action to the contrary by the Plan Administrator in
connection with the grant of a particular <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U>,
and except in the case of Incentive Stock Options as described above, all <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> granted
under this Section 7 shall expire 10 years from the Date of Grant.  </FONT></TD>
</TR>
</TABLE>
<BR>


<p align=center>
<font size=2>A - 8</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(e) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Vesting
Schedule </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
No
<STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> shall be exercisable until it has
vested. The vesting schedule for each <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> shall be specified
by the Plan Administrator at the time of grant of the <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award
</B></U> prior to the provision of services with respect to which such <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> is
granted<STRIKE>.</STRIKE>; <I>provided </I> that if no vesting schedule is specified at the
time of grant, the <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award </B></U>shall vest as
follows:  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>on
the six month anniversary of the Date of Grant, the <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> shall
vest and shall become           exercisable with respect to 25% of the Common Stock to
which it pertains;  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>on
the seven month and each successive month anniversary to and including the
          twenty <STRIKE>three<B><U></U></B></STRIKE><U><B>four</B></U> month anniversary, the
<STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> shall vest and become exercisable
          with respect to an additional <STRIKE>four (4%)           percent<B><U></U></B></STRIKE><U><B>1/24</B></U> of
<STRIKE>the<B><U></U></B></STRIKE><U><B>shares of</B></U> Common Stock to which <STRIKE>it
          pertains ; </STRIKE><STRIKE>and</STRIKE> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><STRIKE>(iii)</STRIKE></FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><STRIKE>on
the twenty-four month anniversary of the Date of Grant, the Option shall           vest
and </STRIKE><STRIKE>shall become exercisable with respect to balance of the Common
          Stock to which it </STRIKE> pertains.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
Plan Administrator may specify a vesting schedule for all or any portion of an <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award
</B></U> based on the achievement of performance objectives established in advance of the
commencement by the <STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant</B></U> of
services related to the achievement of the performance objectives. Performance objectives
shall be expressed in terms of objective criteria, including but not limited to, one or
more of the following: return on equity, return on assets, share price, market share,
sales, earnings per share, costs, net earnings, net worth, inventories, cash and cash
equivalents, gross margin or the Corporation&#146;s performance relative to its internal
business plan. Performance objectives may be in respect of the performance of the
Corporation as a whole (whether on a consolidated or unconsolidated basis), a Related
Corporation, or a subdivision, operating unit, product or product line of either of the
foregoing. Performance objectives may be absolute or relative and may be expressed in
terms of a progression or a range. An <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> that
is exercisable (in full or in part) upon the achievement of one or more performance
objectives may be exercised only following written notice to the <STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant</B></U> and
the Corporation by the Plan Administrator that the performance objective has been
achieved.  </FONT></TD>
</TR>
</TABLE>
<BR>


<p align=center>
<font size=2>A - 9</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(f) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Acceleration
of Vesting </FONT></TD>
</TR>
</TABLE>
<BR>




<!-- MARKER FORMAT-SHEET="Para Flush Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
vesting of one or more outstanding <STRIKE>Options<B><U></U></B></STRIKE><U><B>Award</B></U> may
be accelerated by the Plan Administrator at such times and in such amounts as it shall
determine in its sole discretion.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(g) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Term
of <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Vested
Options shall terminate, to the extent not previously exercised, upon the
          occurrence of the first of the following events:  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 3-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A. </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
expiration of the Option, as designated by the Plan Administrator in           accordance
with Section 7.1(d) above;  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 3-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B. </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
date <STRIKE>an Optionee<B><U></U></B></STRIKE><U><B>a Participant</B></U> receives a
          notice of his or her termination of employment or contractual relationship with
          the Corporation or any Related Corporation for Cause (as hereinafter defined);
          or  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 3-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>C. </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
expiration of <STRIKE>five<B><U></U></B></STRIKE><U><B>three</B></U>          (<STRIKE>5<B><U></U></B></STRIKE><U><B>3</B></U>)
years, unless otherwise determined in           specific agreements by the Plan
Administrator, from the date of an <STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant</B></U>&#146;s
termination of           employment or contractual relationship with the Corporation or
any Related           Corporation for any reason whatsoever other than Cause, but
including death or           disability<STRIKE>, unless, in the case of a Non-Qualified Stock
Option, Section 102 </STRIKE><STRIKE>Option or Section 3(i) Option, the exercise period is
extended by the           Plan </STRIKE><STRIKE>Administrator until a date not later than the
expiration date of           the Option; <B><U></U></B></STRIKE><U><B>.</B></U> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Notwithstanding
Section 7.1(g)(i) above, any vested <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> which
have been granted to <STRIKE>an Optionee</STRIKE><B><U>a Participant</U></B><U></U> in the <STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant</B></U>&#146;s
capacity as a           director of the Corporation or any Related Corporation shall
terminate upon the           occurrence of the first of the following events:  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 3-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A. </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
event specified in Section 7.1(g)(i)A above;  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 3-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B. </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
expiration of <STRIKE>five<B><U></U></B></STRIKE><U><B>three</B></U>          (<STRIKE>5<B><U></U></B></STRIKE><U><B>3</B></U>)
years, unless otherwise determined in           specific agreements by the Plan
Administrator, from the date <STRIKE>the           Optionee<B><U></U></B></STRIKE><U><B>such
Participant</B></U> ceases to serve as a           director of the Corporation or Related
Corporation, as the case may be<STRIKE>, </STRIKE><STRIKE>unless, in the case of a Non-Qualified
Stock Option or Section 102 Option,           the </STRIKE><STRIKE>exercise period is extended
by the Plan Administrator until a date           not later </STRIKE><STRIKE>than the
expiration date of the Option</STRIKE>.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Upon
the death of <STRIKE>an Optionee<B><U></U></B></STRIKE><U><B>a Participant</B></U>,
          any vested option still in force and unexpired may be exercised by the person
or           persons to whom such <STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant</B></U>&#146;s
rights <STRIKE>under </STRIKE><STRIKE>such Option </STRIKE>shall pass by the <STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant</B></U>&#146;s
will or by the           laws of descent and distribution <STRIKE>of<B><U></U></B></STRIKE><U><B>at</B></U> the
<STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant</B></U>&#146;s domicile at the
          time of death, within a period of <STRIKE>twelve (12<B><U></U></B></STRIKE><U><B>thirty
          six (36</B></U>) months after the date of <STRIKE>such           termination<B><U></U></B></STRIKE><U><B>the
</B></U><B><U>Participant&#146;s           death</U></B><U></U>.  </FONT></TD>
</TR>
</TABLE>
<BR>





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

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iv) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For
purposes of the Plan, unless otherwise defined in the Agreement, termination
          for &#147;Cause&#148; shall mean such termination is for &#145;cause&#146; as
          such term is expressly defined in a then-effective written agreement between
the <STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant</B></U> and the Corporation
or           any Related Corporation, or in the absence of such then-effective written
          agreement and in the case of an Employee or an Israeli Employee, termination
for           the following reasons (i) conviction of any felony involving moral
turpitude or           affecting the Corporation; (ii) any refusal to carry out a
reasonable directive           of the chief executive officer, the Board or the <STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant</B></U>&#146;s
direct supervisor,           which involves the business of the Corporation or its
Related Corporation and           was capable of being lawfully performed; (iii)
embezzlement of funds of the           Corporation or its Related Corporation; (iv) any
breach of the <STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant</B></U>&#146;s
fiduciary duties           or duties of care of the Corporation; including without
limitation disclosure of           confidential information of the Corporation; and (v)
any conduct (other than           conduct in good faith) reasonably determined by the
Board to be materially           detrimental to the Corporation. Unless accelerated in
accordance with Section           7.1(f) above, unvested Options shall terminate
immediately upon termination of           employment or contractual relationship of
<STRIKE>an           Optionee<B><U></U></B></STRIKE><U><B>a </B></U><B><U>Participant</U></B><U></U> with
          the Corporation or a Related Corporation, or termination of <STRIKE>an </STRIKE><STRIKE>Optionee<B><U></U></B></STRIKE><U><B>a
Participant</B></U>&#146;s services as a           director of the Corporation or a
Related Corporation, for any reason whatsoever,           including death or disability.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(v) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For
purposes of this Plan, transfer of employment between or among the           Corporation
and/or any Related Corporation shall not be deemed to constitute a           termination
of employment with the Corporation or any Related Corporation.           Employment shall
be deemed to continue while the <STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant</B></U> is
on military leave,           sick leave or other <I>bona fide</I> leave of absence (as
determined by the Plan           Administrator). The foregoing notwithstanding,
employment shall not be deemed to           continue beyond the first ninety (90) days of
such leave, unless otherwise           determined in specific agreements by the Plan
Administrator and unless the <STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant</B></U>&#146;s
re-employment           rights are guaranteed by statute or by contract.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(h) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exercise
of Options </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Options
shall be exercisable, in full or in part, at any time after vesting,           until
termination<B><U> of right </U></B><U></U><B><U>to           exercise</U></B><U></U>. If
less than all of the <B><U>shares of </U></B><U></U>Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> included
in           the vested portion of any <STRIKE>Option<B><U></U></B></STRIKE><U><B>option</B></U> are
          purchased, the remainder may be purchased at any subsequent time prior to the
          expiration of the <STRIKE>Option term<B><U></U></B></STRIKE><U><B>exercise
period</B></U>.           Only <B><U>a </U></B><U></U> whole <B><U>share of </U></B><U></U>Common
<STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> may be issued pursuant to an
<STRIKE>Option<B><U></U></B></STRIKE><U><B>option</B></U>, and to the extent that an
<STRIKE>Option<B><U></U></B></STRIKE><U><B>option</B></U> covers less than one (1) <B><U>share
of </U></B><U></U>Common <STRIKE>Share<B><U></U></B></STRIKE><U><B>Stock</B></U>, it is
unexercisable.  </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>A - 11</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Options
or portions thereof may be exercised by giving written notice to the
          Corporation, in such form and method as may be determined by the Corporation
and           when applicable, by the Trustee in accordance with the requirements of
Section           102 of the Ordinance, which notice shall specify the number of <B><U>shares
of </U></B><U></U>Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> to be
          purchased, and be accompanied by payment in the amount of the aggregate
exercise           price for the Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> so
          purchased, which payment shall be in the form specified in Section 7.1(i)
below.           The Corporation shall not be obligated to issue, transfer or deliver a
          certificate representing <B><U>shares of </U></B><U></U>Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> to
the Holder of any Option,           until provision has been made by the Holder, to the
satisfaction of the           Corporation, for the payment of the aggregate exercise
price for all <B><U>shares of </U></B><U></U>Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock
</B></U> for which the <STRIKE>Option<B><U></U></B></STRIKE><U><B>option</B></U> shall
          have been exercised and for satisfaction of any tax withholding obligations
          associated with such exercise. During the lifetime of an <STRIKE>Optionee,
          Options<B><U></U></B></STRIKE><U><B>Participant, options</B></U> are
exercisable only           by the <STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant</B></U>.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For
Israeli Employees the above mentioned in section h(ii) is subject to section
          102 and the trust mechanism as defined in section 5 of this Plan.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 3-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%>&nbsp;</TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
With
respect to Unapproved 102 <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U>, if
the <STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant</B></U> ceases to be
employed by the Corporation or any <STRIKE>Afffiliate<B><U></U></B></STRIKE><U><B>Affiliate</B></U>,
the <STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant</B></U> shall extend to the
Corporation and/or its Affiliate a security or guarantee for the payment of tax due at
the time of sale of <STRIKE>Shares<B><U></U></B></STRIKE><U><B>shares of Common Stock</B></U>,
all in accordance with the provisions of Section 102 and the rules, regulation or orders
promulgated thereunder. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Payment
upon Exercise of Option </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Upon
the exercise of any <STRIKE>Option<B><U></U></B></STRIKE><U><B>option</B></U>, the
aggregate exercise price shall be paid to the Corporation in cash or by certified or
cashier&#146;s check. In addition, if pre-approved in writing by the Plan Administrator
who may arbitrarily withhold consent, the Holder may pay for all or any portion of the
aggregate exercise price by complying with one or more of the following alternatives:  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>by
delivering to the Corporation <B><U>shares of </U></B><U></U>Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> previously
held by such Holder,           or by the Corporation withholding <B><U>shares of </U></B><U></U>Common
<STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> otherwise deliverable pursuant
to           exercise of <STRIKE>the Option<B><U></U></B></STRIKE><U><B>option</B></U>,
which <B><U>shares of </U></B><U></U>Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> received
or withheld shall have a           fair market value at the date of exercise (as
determined by the Plan           Administrator) equal to the aggregate exercise price to
be paid by the <STRIKE>Optionee</STRIKE><B><U>Participant</U></B><U></U> upon such exercise;  </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>A - 12</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>by
delivering a properly executed exercise notice together with irrevocable
          instructions to a broker promptly to sell or margin a sufficient portion of the
<B><U>shares of </U></B><U></U>Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock
</B></U> and deliver directly to the Corporation the amount of sale or margin
          loan proceeds to pay the exercise price; or  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>by
complying with any other payment mechanism approved by the Plan Administrator
          at the time of exercise.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>&nbsp;</U></B> </FONT> </TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>(i1)</U></B> </FONT> </TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Restricted
Stock</U></B> </FONT> </TD>
</TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="Para Flush Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B><U>An
Award of Restricted Stock, whether as 102 Award, Non-Qualified Award or Section 3(i)
Award, </U></B><U></U><B><U>may be granted by the Corporation in a specified number of
shares of Common Stock of </U></B><U></U><B><U>Corporation to the Participant, which
shares may or may no be subject to forfeiture or other </U></B><U></U><B><U>restrictions
upon the happening of specified events (the term in which such restrictions apply </U></B><U></U><B><U>shall
be referred to as the &#147;Restriction Period&#148;). Such an Award shall be subject to
the </U></B><U></U><B><U>following terms and conditions:</U></B> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>(i)</U></B></FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U><B>Restricted
Stock shall be evidenced by Award agreements. Such agreements           shall conform to
the </B></U><B><U>requirements of the Plan and may contain           such other
provisions as the Committee shall </U></B><U></U><B><U>deem           advisable.</U></B> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>(ii)</U></B></FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U><B>Upon
determination of the number of shares of Restricted Stock to be granted           to a
Holder, the Committee </B></U><B><U>shall direct that a certificate or
          certificates representing the number of shares of </U></B><U></U><B><U>Common
          Stock of Corporation be issued to the Holder with the Holder designated as the
</U></B><U></U><B><U>registered owner. If any restrictions apply to such shares
          of Restricted Stock, the </U></B><U></U><B><U>certificate(s) representing such
          shares shall be legended as to sale, transfer, </U></B><U></U><B><U>assignment,
          pledge or other encumbrances during the Restriction Period and deposited </U></B><U></U><B><U>by
the Holder, together with a stock power endorsed in           blank, with the
Corporation, to </U></B><U></U><B><U>be held in escrow during           the Restriction
Period.</U></B> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>(iii)</U></B></FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U><B>Unless
otherwise determined by the Committee at the time of an Award, during           the
Restriction Period the </B></U><B><U>Holder shall have the right to receive
          dividends from and to vote the shares of </U></B><U></U><B><U>Restricted Stock.</U></B> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>(iv)</U></B></FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U><B>The
Award Agreement shall specify the duration of the Restriction Period, if           any,
and the employment or </B></U><B><U>other conditions (including           termination of
employment on account of death, disability, </U></B><U></U><B><U>retirement or other
cause) under which shares of Restricted Stock may be           forfeited by </U></B><U></U><B><U>the
Corporation. At the end of the           Restriction Period, if any, the restrictions </U></B><U></U><B><U>imposed
shall           lapse with respect to the number of shares of Restricted Stock as </U></B><U></U><B><U>determined
by the Committee, and the legend shall be           removed and such number of shares </U></B><U></U><B><U>delivered
to the Holder           (or, where appropriate, the Holder&#146;s legal representative).
</U></B><U></U><B><U>The Committee may, in its sole discretion, modify or accelerate the
          vesting and </U></B><U></U><B><U>delivery of shares of Restricted Stock, if
          those are subject to vesting.</U></B> </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>A - 13</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>&nbsp;</U></B> </FONT> </TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>(i2)</U></B> </FONT> </TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Restricted
Stock Unit.</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B><U>The
Plan Administrator is authorized to make awards of Restricted Stock Units, whether as 102
Award, </U></B><U></U><B><U>Non-Qualified Award or Section 3(i) Award, to any Employee or
Consultant in such amounts and subject to </U></B><U></U><B><U>such terms and conditions
as the Plan Administrator shall deem appropriate. On the vesting date of a </U></B><U></U><B><U>Restricted
Stock Unit, unless otherwise noted in the Award Agreement, the Corporation shall transfer
to </U></B><U></U><B><U>the Participant one unrestricted, fully transferable, fully paid
and non-assessable share of Common </U></B><U></U><B><U>Stock for each Restricted Stock
Unit scheduled to be paid out on such date and not previously forfeited.</U></B> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>(i)</U></B></FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U><B>All
Awards of restricted stock units made pursuant to this Plan will be           evidenced
by an Award Agreement </B></U><B><U>and will comply with and be           subject to the
terms and conditions of this Plan.</U></B> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>(ii)</U></B></FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U><B>Unless
otherwise determined by the Committee at the time of an Award, during           the
Restriction Period the </B></U><B><U>Holder shall not have the right to           receive
dividends from and to vote the shares </U></B><U></U><B><U>underlying           the
Restricted Stock Units.</U></B> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>(iii)</U></B></FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U><B>Restricted
Stock Units shall be subject to such terms and conditions as the           Plan
Administrator may impose. These terms and
conditions may include restrictions based upon completion of a specified period of
service with the Corporation or an Affiliate as set out in advance in the
Participant&#146;s individual Award Agreement.</B></U> </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(j) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>No
Rights as a Shareholder </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
A
Holder shall have no rights as a shareholder of the Corporation with respect to any <B><U>shares
of </U></B><U></U> Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> covered
by an <STRIKE>Option<B><U></U></B></STRIKE><U><B>option and to any unvested Restricted
Stock Unit</B></U> until such Holder becomes a record holder of such <STRIKE>Common Shares<B><U></U></B></STRIKE><U><B>shares</B></U>,
irrespective of whether such Holder has given notice of exercise. Subject to the
provisions of Section 7.1(m) hereof, no rights shall accrue to a Holder and no
adjustments shall be made on account of dividends (ordinary or extraordinary, whether in
cash, securities or other property) or distributions or other rights declared on, or
created in, the Common Shares for which the record date is prior to the date the Holder
becomes a record holder of the <B><U>shares of </U></B><U></U>Common <STRIKE>Shares
covered by the </STRIKE><STRIKE>Option<B><U></U></B></STRIKE><U><B>Stock</B></U>,
irrespective of whether such Holder has given notice of exercise. <STRIKE>In case of
</STRIKE><STRIKE>Options and Common Shares held<B><U></U></B></STRIKE><U><B>Awards and
shares of Common Stockheld</B></U> by the Trustee,<B><U> are</U></B><U></U> subject to
the provisions of Section 5 of the Plan.  </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>A - 14</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(k) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Non-transferability
<STRIKE>of Options</STRIKE></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Options<B><U> and
unvested Restricted Stocks and Restricted Stock Units</U></B><U></U> granted under this
Plan and the rights and privileges conferred by this Plan may not be transferred,
assigned, pledged or hypothecated in any manner (whether by operation of law or
otherwise) other than by will, by applicable laws of descent and distribution, and shall
not be subject to execution, attachment or similar process. Upon any attempt to transfer,
assign, pledge, hypothecate or otherwise dispose of any <STRIKE>Option<B><U></U></B></STRIKE><U><B>Options
and unvested Restricted Stocks and Restricted Stock Units</B></U> or of any right or
privilege conferred by this Plan contrary to the provisions hereof, or upon the sale,
levy or any attachment or similar process upon the rights and privileges conferred by
this Plan, such <STRIKE>Option<B><U></U></B></STRIKE><U><B>options and unvested
Restricted Stocks and Restricted Stock Units</B></U> shall thereupon terminate and become
null and void.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
As
long as <STRIKE>Options and/or Common Shares<B><U></U></B></STRIKE><U><B>Awards</B></U> are
held by the Trustee on behalf of the <STRIKE>Optionee</STRIKE><B><U>Participant</U></B><U></U>, all rights
of the <STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant</B></U> over the <B><U>shares
of </U></B><U></U>Common <STRIKE>Shares are</STRIKE><B><U>Stockare</U></B><U></U> personal,
can not be transferred, assigned, pledged or mortgaged, other than by will or pursuant to
the laws of descent and distribution.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(l) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Securities
Regulation and Tax Withholding </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(i) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Shares
of </U></B><U></U>Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> shall
not be issued with respect           to an <STRIKE>Option unless<B><U></U></B></STRIKE><U><B>Award
(also in </B></U><B><U>connection with</U></B><U></U> the exercise of <STRIKE>such
          Option<B><U></U></B></STRIKE><U><B>option)</B></U> and the issuance and
delivery of           such <B><U>shares of </U></B><U></U>Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> shall
comply with all Applicable           Laws, and such issuance shall be further subject to
the approval of counsel for           the Corporation with respect to such compliance,
including the availability of           an exemption from prospectus and registration
requirements for the issuance and           sale of such <B><U>shares of </U></B><U></U>Common
<STRIKE>Shares</STRIKE><B><U>Stock</U></B><U></U>. The inability of the Corporation to obtain
          from any regulatory body the authority deemed by the Corporation to be
necessary           for the lawful issuance and sale of any <B><U>shares of </U></B><U></U>Common
<STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> under this Plan, or the
          unavailability of an exemption from prospectus and registration requirements
for           the issuance and sale of any <B><U>shares of </U></B><U></U>Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> under
this Plan, shall relieve           the Corporation of any liability with respect to the
non-issuance or sale of           such <B><U>shares of </U></B><U></U>Common <STRIKE>Shares</STRIKE><B><U>Stock</U></B>.  </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>A - 15</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As
a condition to the exercise of an Option<B><U> or issuance of other           Awards</U></B><U></U>,
the Plan Administrator may require the Holder to           represent and warrant in
writing at the time of such exercise that the <B><U>shares of </U></B><U></U>Common
<STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> are being purchased only for
          investment and without any then-present intention to sell or distribute such <B><U>shares
of </U></B><U></U>Common <STRIKE>Shares</STRIKE><B><U>Stock</U></B><U></U>. If           necessary under
Applicable Laws, the Plan Administrator may cause a           stop-transfer order against
such Common Shares to be placed on the stock books           and records of the
Corporation, and a legend indicating that the <B><U>shares of </U></B><U></U>Common <STRIKE>Shares</STRIKE><B><U>Stock</U></B><U></U> may
not be pledged, sold           or otherwise transferred unless an opinion of counsel is
provided stating that           such transfer is not in violation of any Applicable Laws,
may be stamped on the           certificates representing such <B><U>shares of </U></B><U></U>Common
<STRIKE>Shares</STRIKE><B><U>Stock</U></B><U></U>           in order to assure an exemption from registration. The Plan
Administrator also           may require such other documentation as may from time to
time be necessary to           comply with applicable securities laws. THE CORPORATION
HAS NO OBLIGATION TO           UNDERTAKE REGISTRATION OF OPTIONS OR THE COMMON SHARES
ISSUABLE UPON THE           EXERCISE OF OPTIONS<B><U> OR ISSUANCE OF OTHER AWARDS</U></B><U></U>.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Holder shall pay to the Corporation by certified or cashier&#146;s check,
          promptly upon exercise of an <STRIKE>Option<B><U></U></B></STRIKE><U><B>option</B></U> or,
          if sooner or later, the date that the amount of such obligations becomes
          determinable<B><U> upon any Award</U></B><U></U>, all applicable federal,
state,           local and foreign withholding taxes that the Plan Administrator or the
Trustee,           in their discretion, subject to section 102 in case of Israeli
Employees,           determines to result upon exercise of an <STRIKE>Option<B><U></U></B></STRIKE><U><B>option</B></U> or
from a transfer or other           disposition of <B><U>shares of </U></B><U></U> Common
<STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> acquired upon exercise of an
<STRIKE>Option<B><U></U></B></STRIKE><U><B>option</B></U> or otherwise related to an
<STRIKE>Option<B><U></U></B></STRIKE><U><B>option</B></U> or <B><U>shares of </U></B><U></U>Common
<STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> acquired in           connection
with an Option<B><U></U></B><U></U><B><U> or issuance of shares           underlying a
different Award</U></B><U></U>. Furthermore, the Holder shall agree           to
indemnify the Corporation and/or its Affiliates and/or the Trustee and hold
          them harmless against and from any and all liability for any such tax or
          interest or penalty thereon, including without limitation, liabilities relating
          to the necessity to withhold, or to have withheld, any such tax from any
payment           made to the Holder. Upon approval of the Plan Administrator, a Holder
may           satisfy such obligation by complying with one or more of the following
          alternatives selected by the Plan Administrator:  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lvl 3-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          by delivering to the Corporation <B><U>shares of </U></B><U></U>Common
          <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> previously held by such Holder or
          by the Corporation withholding <B><U>shares of </U></B><U></U>Common
          <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> otherwise deliverable pursuant to
          the exercise of the <STRIKE>Option<B><U></U></B></STRIKE><U><B>option or issuance of
          shares underlying </B></U> <B><U>a different Award</U></B><U></U>, which
          <B><U>shares of </U></B><U></U>Common
          <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> received or withheld shall have a
          fair market value (as determined by the Plan Administrator) equal to the minimum
          mandatory withholding tax obligations arising as a result of such exercise,
          transfer or other disposition; or </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<p align=center>
<font size=2>A - 16</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lvl 3-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          by complying with any other payment mechanism approved by the Plan Administrator
          from time to time. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iv) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
issuance, transfer or delivery of certificates representing <B><U>shares of </U></B><U></U>Common
<STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> pursuant to           the
exercise of <STRIKE>Options<B><U></U></B></STRIKE><U><B>options or issuance of shares
          underlying a different Award</B></U> may be delayed, at the discretion of the
          Plan Administrator, until the Plan Administrator is satisfied that the
          applicable requirements of all Applicable Laws and the withholding provisions
of           the Code and/or the Ordinance have been met and that the Holder has paid or
          otherwise satisfied any withholding tax obligation as described in Section
          7.1(l)(iii) above.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(m) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Adjustments
Upon Changes In Capitalization </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
aggregate number <B><U>(in the case of Incentive Stock Options and for           purposes
of the limit in Section </U></B><U></U><B><U>6.2 above) </U></B><U></U>and class of
shares for which <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> may be
granted under this Plan,           the number and class of shares covered by each
outstanding <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U>, and the exercise
price per share           thereof (but not the total price), and each such <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U>,
shall all be proportionately           adjusted for any increase or decrease in the
number of issued Common Shares of           the Corporation resulting from:  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 3-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A. </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a
subdivision or consolidation of Common Shares or any like capital adjustment,
          or  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 3-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B. </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
issuance of any <B><U>shares of </U></B><U></U>Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U>,
or securities exchangeable for           or convertible into <B><U>shares of </U></B><U></U>Common
<STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U>, to the holders of all or
          substantially all of the outstanding <B><U>shares of </U></B><U></U>Common
<STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> by way of a stock dividend
(other           than the issue of <B><U>shares of </U></B><U></U>Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U>,
or securities exchangeable for           or convertible into <B><U>shares of </U></B><U></U>Common
<STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U>, to holders of <B><U>shares of
</U></B><U></U> Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> pursuant
          to their exercise of options to receive dividends in the form of <B><U>shares
of </U></B><U></U>Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U>, or
          securities convertible into <B><U>shares of </U></B><U></U>Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U>,
in lieu of dividends paid in the           ordinary course on the <B><U>shares of </U></B><U></U>Common
<STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U>).  </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>A - 17</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Except
as provided in Section 7.1(m)(iii) hereof, upon a merger (other than a           merger
of the Corporation in which the holders of Common Shares immediately           prior to
the merger have the same proportionate ownership of common shares in           the
surviving corporation immediately after the merger), consolidation,           acquisition
of property or stock, separation, reorganization (other than a mere
          re-incorporation or the creation of a holding Corporation) or liquidation of
the           Corporation, as a result of which the shareholders of the Corporation,
receive           cash, shares or other property in exchange for or in connection with
their <B><U>shares of </U></B><U></U>Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U>,
any <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> granted hereunder shall
          terminate, but the Holder shall have the right to exercise such Holder&#146;s
<STRIKE>Option</STRIKE><B><U>Award</U></B><U></U> immediately prior to any such merger,
          consolidation, acquisition of property or shares, separation, reorganization or
          liquidation, and to be treated as a shareholder of record for the purposes
          thereof, to the extent the vesting requirements set forth in the <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> agreement
have been satisfied.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If
the shareholders of the Corporation receive shares in the capital of another
          corporation (&#147;Exchange Shares&#148;) in exchange for their <B><U>shares of
</U></B><U></U>Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> in any
          transaction involving a merger (other than a merger of the Corporation in which
          the holders of <B><U>shares of </U></B><U></U>Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> immediately
prior to the merger           have the same proportionate ownership of <B><U>shares of
</U></B><U></U>Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> in the
surviving corporation           immediately after the merger), consolidation, acquisition
of property or shares,           separation or reorganization (other than a mere
re-incorporation or the creation           of a holding Corporation), all <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U>          granted
hereunder shall be converted into <STRIKE>options<B><U></U></B></STRIKE><U><B>Awards</B></U> to
purchase Exchange           Shares<B><U>,</U></B><U></U> unless the Corporation and the
corporation issuing           the Exchange Shares, in their sole discretion, determine
that any or all such <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> granted
hereunder shall not be           converted into <STRIKE>options<B><U></U></B></STRIKE><U><B>Awards</B></U> to
purchase           Exchange Shares but instead shall terminate in accordance with, and
subject to           the Holder&#146;s right to exercise the Holder&#146;s <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> pursuant
to, the provisions of           Section 7.1(m)(ii). The amount and price of converted
<STRIKE>options<B><U></U></B></STRIKE><U><B>Awards</B></U> shall be determined by
          adjusting the amount and price of the <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> granted
hereunder in the same           proportion as used for determining the number of Exchange
Shares the holders of           the <B><U>shares of </U></B><U></U>Common <STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> receive
in such merger,           consolidation, acquisition or property or stock, separation or
reorganization.           Unless accelerated by the Board, the vesting schedule set forth
in the option           agreement shall continue to apply to the <STRIKE>options<B><U></U></B></STRIKE><U><B>Awards</B></U> granted
for the Exchange           Shares.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iv) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
the event of any adjustment in the number of <B><U>shares of </U></B><U></U>Common
<STRIKE>Shares<B><U></U></B></STRIKE><U><B>Stock</B></U> covered by           any <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U>,
any fractional shares           resulting from such adjustment shall be disregarded and
each such <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> shall cover only the
number of           full shares resulting from such adjustment.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(v) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All
adjustments pursuant to Section 7.1(m) shall be made by the Plan           Administrator,
and its determination as to what adjustments shall be made, and           the extent
thereof, shall be final, binding and conclusive.  </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>A - 18</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(vi) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
grant of an <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> shall not affect
          in any way the right or power of the Corporation to make adjustments,
          reclassifications, reorganizations or changes of its capital or business
          structure, to merge, consolidate or dissolve, to liquidate or to sell or
          transfer all or any part of its business or assets.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>8. </B></FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>EFFECTIVE
DATE; AMENDMENT; SHAREHOLDER APPROVAL</U></B></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><STRIKE>8.1</STRIKE></B> &nbsp;&nbsp;&nbsp;&nbsp;<STRIKE></STRIKE><STRIKE>Options
may be granted by the Plan Administrator from time to time on or after the date on which
this Plan is adopted by the Board (the &#147;<B>Effective Date</B>&#148;). In case of the
Israeli Optionees, Approved 102 Options will be granted only after the lapse of at least
30 days following the date in which the Plan and the relevant forms will be submitted to
the tax authorities as detailed in Section 4.6 above.</STRIKE> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>8.1</U></B>&nbsp;&nbsp;&nbsp;&nbsp;<STRIKE><U></U></STRIKE><U><B></B></U><B><STRIKE>8.2
</STRIKE></B><STRIKE></STRIKE>Unless sooner terminated by the Board, this Plan shall
terminate on <STRIKE>the tenth anniversary of the Effective Date.<B><U></U></B></STRIKE><U><B>December
31, 2018.</B></U> No Option may be granted after such termination or during any
suspension of this Plan.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>8.2</U></B>&nbsp;&nbsp;&nbsp;&nbsp;<STRIKE><U></U></STRIKE><U></U><STRIKE>8.3
</STRIKE>Any Incentive Stock Options granted by the Plan Administrator prior to the
ratification of this Plan by the shareholders of the Corporation shall be granted subject
to approval of this Plan by the <STRIKE>holders of a majority<B><U></U></B></STRIKE><U><B>shareholders</B></U> of
the Corporation&#146;s outstanding voting shares, voting either in person or by proxy at
a duly held shareholders&#146;meeting within twelve (12) months before or after the
<STRIKE>Effective Date<B><U></U></B></STRIKE><U><B>date this Amended and Restated 2005
Stock Option Plan is approved by the Board</B></U>. If such shareholder approval is
sought and not obtained, all Incentive Stock Options granted prior thereto and thereafter
shall be considered Non-Qualified <STRIKE>Stock Options<B><U></U></B></STRIKE><U><B>Awards</B></U> and
any <STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> granted to Covered
Employees will not be eligible for the exclusion set forth in Section 162(m) of the Code
with respect to the deductibility by the Corporation of certain compensation.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">9. &nbsp;&nbsp;&nbsp;&nbsp;<U>NO OBLIGATIONS TO
EXERCISE OPTION</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The grant of an
<STRIKE>Option<B><U></U></B></STRIKE><U><B>option</B></U> shall impose no obligation upon the
<STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant</B></U> to exercise such <STRIKE>Option<B><U></U></B></STRIKE><U><B>option</B></U>. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10. &nbsp;&nbsp;&nbsp;&nbsp;<U>NO RIGHT TO
<STRIKE>OPTIONS</STRIKE>AWARD OR TO EMPLOYMENT</U> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Whether or not any
<STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> are to be granted under this Plan shall
be exclusively within the discretion of the Plan Administrator, <STRIKE>and </STRIKE>nothing
contained in this Plan shall be construed as giving any person any right to participate
under this Plan. The grant of an <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> shall in
no way constitute any form of agreement or understanding binding on the Corporation or any
Related Corporation, express or implied, that the Corporation or any Related Corporation
will employ or contract with an <STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant</B></U> for
any length of time, nor shall it interfere in any way with the Corporation&#146;s or,
where applicable, a Related Corporation&#146;s right to terminate
<STRIKE>Optionee<B><U></U></B></STRIKE><U><B>Participant</B></U>&#146;s employment at any time,
which right is hereby reserved. </FONT></P>

<p align=center>
<font size=2>A - 19</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">11.&nbsp;&nbsp;&nbsp;&nbsp; <U>APPLICATION OF FUNDS</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The proceeds received by the
Corporation from the sale of Common Shares issued upon the exercise of
<STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> shall be used for general corporate
purposes, unless otherwise directed by the Board. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">12.&nbsp;&nbsp;&nbsp;&nbsp; <U>INDEMNIFICATION OF
PLAN ADMINISTRATOR</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In addition to all other rights of
indemnification they may have as members of the Board, members of the Plan Administrator
shall be indemnified by the Corporation for all reasonable expenses and liabilities of any
type or nature, including attorneys&#146; fees, incurred in connection with any action,
suit or proceeding to which they or any of them are a party by reason of, or in connection
with, this Plan or any <STRIKE>Option<B><U></U></B></STRIKE><U><B>Award</B></U> granted under this
Plan, and against all amounts paid by them in settlement thereof (provided that such
settlement is approved by independent legal counsel selected by the Corporation), except
to the extent that such expenses relate to matters for which it is adjudged that such Plan
Administrator member is liable for wilful misconduct; provided, that within fifteen (15)
days after the institution of any such action, suit or proceeding, the Plan Administrator
member involved therein shall, in writing, notify the Corporation of such action, suit or
proceeding, so that the Corporation may have the opportunity to make appropriate
arrangements to prosecute or defend the same. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">13. &nbsp;&nbsp;&nbsp;&nbsp;<U>AMENDMENT OF PLAN</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><STRIKE>The<B><U></U></B></STRIKE><U><B>Subject
to additional consents and approvals required under Applicable Law, the</B></U> Plan
Administrator may, at any time, modify, amend or terminate this Plan or modify or amend
<STRIKE>Options<B><U></U></B></STRIKE><U><B>Awards</B></U> granted under this Plan, including,
without limitation, such modifications or amendments as are necessary to maintain
compliance with the Applicable Laws. <STRIKE>The Plan Administrator may condition the
effectiveness of any such amendment on the receipt of shareholder approval at such time
and in such manner as the Plan Administrator may consider necessary for the Corporation to
comply with or to avail the Corporation and/or the Optionees of the benefits of any
securities, tax, market listing or other administrative or regulatory requirements.</STRIKE> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><STRIKE>Effective Date:
September 18, 2006</STRIKE> </FONT></P>


<p align=center>
<font size=2>A - 20</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


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

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

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>JANUARY 21, 2009 </FONT></H1>

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

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>THE FOLLOWING PROXY IS BEING
SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS OF PLURISTEM THERAPEUTICS INC.</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The undersigned stockholder of
Pluristem Therapeutics Inc. (the &#147;<U>Company</U>&#148;) hereby appoints Zami Aberman
and Yaky Yanay, or any of them, as proxy and attorney of the undersigned, for and in the
name(s) of the undersigned, to attend the annual meeting of stockholders of the Company
(the &#147;<U>Stockholders Meeting</U>&#148;) to be held at the Company&#146;s offices at
Matam Advanced Technology Park Building No. 20, Haifa, Israel, 31905 on Wednesday, January
21, 2009, at 5:00 p.m. local time, and any adjournment thereof, to cast on behalf of the
undersigned all the votes that the undersigned is entitled to cast at such meeting and
otherwise to represent the undersigned at the Stockholders Meeting with all powers
possessed by the undersigned if personally present at the Stockholders Meeting, including,
without limitation, to vote and act in accordance with the instructions set forth below.
The undersigned hereby acknowledges receipt of the Notice of Annual Meeting of
Stockholders and revokes any proxy heretofore given with respect to such meeting. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The votes entitled to be cast by the
undersigned will be cast as instructed below. If this Proxy Card is executed but no
instruction is given, the votes entitled to be cast by the undersigned will be cast
&#147;FOR&#148;each nominee in Proposal 1 and &#147;FOR&#148; the adoption of the
Company&#146;s Amended and Restated 2005 Stock Option Plan specified in Proposal 2. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Default" -->
<H1 ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Continued and to be
signed on the reverse side) </FONT></H1>

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

<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>ANNUAL MEETING OF STOCKHOLDERS OF</B> </FONT> </P>

<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="4"><B>PLURISTEM THERAPEUTICS INC.</B> </FONT></P>

<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>JANUARY 21, 2009</B> </FONT> </P>

<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Please sign, date and mail
<BR>your proxy card in the
<BR>envelope provided as soon
<BR>as possible.
</FONT></P>







<TABLE ALIGN=CENTER  BORDER=0   CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
   <TR>
  <TD  VALIGN=TOP style="border:solid black 1px">
  <P ALIGN=CENTER><FONT FACE="ARIAL" SIZE="1"><B>THE BOARD OF DIRECTORS RECOMMENDS A VOTE &#147;FOR&#148; THE ELECTION OF EACH <BR>OF THE PRESIDING DIRECTORS LISTED BELOW AND &#147;FOR&#148; PROPOSAL 2. <BR>PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE.  PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE </B>
 </FONT><FONT FACE="WINGDINGS" SIZE="1"><B>x</B> </FONT></P>
  </TD>
 </TR>
</TABLE>

<DIV style="position:relative; float:left; width:49%; margin:0%">

<TABLE ALIGN=CENTER  BORDER=0   CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="3%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="27%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="21%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="11%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>


<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY  STYLE="margin-top:3px"><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="7" VALIGN=TOP>
  <P ALIGN=JUSTIFY  STYLE="margin-top:3px"><FONT SIZE=1 FACE=ARIAL> &nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY  STYLE="margin-top:3px"><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="7" VALIGN=TOP>
  <P ALIGN=JUSTIFY  STYLE="margin-top:3px"><FONT SIZE=1 FACE=ARIAL> &nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>

<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY  STYLE="margin-top:3px"><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="7" VALIGN=TOP>
  <P ALIGN=JUSTIFY  STYLE="margin-top:3px"><FONT SIZE=1 FACE=ARIAL> &nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY  STYLE="margin-top:3px"><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="7" VALIGN=TOP>
  <P ALIGN=JUSTIFY  STYLE="margin-top:3px"><FONT SIZE=1 FACE=ARIAL> &nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY  STYLE="margin-top:3px"><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="7" VALIGN=TOP>
  <P ALIGN=JUSTIFY  STYLE="margin-top:3px"><FONT SIZE=1 FACE=ARIAL> &nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY  STYLE="margin-top:3px"><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="7" VALIGN=TOP>
  <P ALIGN=JUSTIFY  STYLE="margin-top:3px"><FONT SIZE=1 FACE=ARIAL> &nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY  STYLE="margin-top:3px"><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="7" VALIGN=TOP>
  <P ALIGN=JUSTIFY  STYLE="margin-top:3px"><FONT SIZE=1 FACE=ARIAL> &nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY  STYLE="margin-top:3px"><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="7" VALIGN=TOP>
  <P ALIGN=JUSTIFY  STYLE="margin-top:3px"><FONT SIZE=1 FACE=ARIAL> &nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY  STYLE="margin-top:3px"><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="7" VALIGN=TOP>
  <P ALIGN=JUSTIFY  STYLE="margin-top:3px"><FONT SIZE=1 FACE=ARIAL> &nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY  STYLE="margin-top:3px"><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="7" VALIGN=TOP>
  <P ALIGN=JUSTIFY  STYLE="margin-top:3px"><FONT SIZE=1 FACE=ARIAL> &nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY  STYLE="margin-top:3px"><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="7" VALIGN=TOP>
  <P ALIGN=JUSTIFY  STYLE="margin-top:3px"><FONT SIZE=1 FACE=ARIAL> &nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="4" VALIGN=bottom>
  <P ALIGN=JUSTIFY><FONT SIZE=1 FACE=ARIAL>&nbsp; </FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" valign=middle>
  <P ALIGN=JUSTIFY> &nbsp;</P>
  </TD>
  <TD  COLSPAN="2"  valign=middle>
  <P ALIGN=JUSTIFY><FONT FACE="ARIAL" SIZE="1"> &nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="4" VALIGN=bottom ROWSPAN=4>
  <P><FONT SIZE=1 FACE=ARIAL> &nbsp;</FONT>
<BR><FONT SIZE=1 FACE=ARIAL>&nbsp; </FONT>
<BR><FONT SIZE=1 FACE=ARIAL>&nbsp; </FONT>
<BR><FONT SIZE=1 FACE=ARIAL> &nbsp;</FONT>
</P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" ROWSPAN=2 VALIGN=TOP>
  <P ALIGN=JUSTIFY> &nbsp;</P>
  </TD>
  <TD  COLSPAN="2" valign=TOP ROWSPAN=2>
  <P ALIGN=JUSTIFY><FONT FACE="ARIAL" SIZE="1"> &nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>


 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>

 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
    <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" ROWSPAN=2 VALIGN=TOP>
  <P ALIGN=JUSTIFY> &nbsp;</P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP ROWSPAN=2>
  <P ALIGN=JUSTIFY><FONT FACE="ARIAL" SIZE="1"> &nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
    <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>




<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
    <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>






 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
    <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
    <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
    <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>

 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
    <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
    <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD nowrap COLSPAN="3" VALIGN=TOP>
  <P ALIGN=JUSTIFY>

<FONT FACE="ARIAL" SIZE="1"> &nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="6" VALIGN=TOP>
  <P ALIGN=JUSTIFY>

<FONT FACE="ARIAL" SIZE="1"> &nbsp;</font></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR style="font-size:1 px">
  <TD  VALIGN=TOP >&nbsp;


  </TD>
  <TD  COLSPAN="3" VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;


  </TD>
  <TD  COLSPAN="5" VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;


  </TD>
  <TD  VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;


  </TD>
  <TD  style="border-right: solid black 1px;border-bottom:solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>


 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR><TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR><TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>

<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  style="border-right: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>

 <TR style="font-size:1 px">
  <TD  VALIGN=TOP>&nbsp;


  </TD>
  <TD  COLSPAN="7" VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;


  </TD>
  <TD  style="border-bottom:solid black 1px">&nbsp;


  </TD>
  <TD  VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;


  </TD>
  <TD  style="border-right: solid black 1px;border-bottom:solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="7" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT FACE="ARIAL" SIZE="1"><B>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. </B> </FONT></P>
  </TD>
  <TD colspan=2>   <P ALIGN=right><FONT SIZE=5    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP style="border-right: solid black 1px">
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
<TR style="font-size:1 px">
  <TD  VALIGN=TOP >&nbsp;


  </TD>
  <TD  COLSPAN="7" VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;


  </TD>
  <TD  style="border-bottom:solid black 1px">&nbsp;


  </TD>
  <TD  VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;


  </TD>
  <TD  style="border-right: solid black 1px;border-bottom:solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
</TABLE>
</div>



<DIV style="position:relative; float:left; width:49%; margin-left:1%">
<TABLE ALIGN=CENTER  BORDER=0   CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="6%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="51%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="6%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="13%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="11%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
  <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT FACE="ARIAL" SIZE="1"><B>1.</B> </FONT></P>
  </TD>
  <TD  VALIGN=TOP colspan=6>
<P  ALIGN=JUSTIFY style="margin-right:10px" ><FONT FACE="ARIAL" SIZE="1"><B>Election of Directors: To elect the following nominees to the Board of Directors to serve as directors of the Company until the next annual meeting of the stockholders and until his or her successor is elected and qualified or his earlier resignation or removal:</B> </FONT> </P>
  </TD>
 </TR>
<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER style="margin-top:3px"><FONT FACE="ARIAL" SIZE="1"><B>FOR</B> </FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER  style="margin-top:3px"><FONT FACE="ARIAL" SIZE="1"><B>AGAINST</B> </FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER  style="margin-top:3px"><FONT FACE="ARIAL" SIZE="1"><B>ABSTAIN</B> </FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>

 <TR>
      <TD>&nbsp; </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD></TR>
<TR>
  <TD  VALIGN=TOP>
  <P  STYLE="margin-top:2px" ALIGN=JUSTIFY><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P    ALIGN=JUSTIFY style="margin-right:10px;margin-top:3px"><FONT FACE="ARIAL" SIZE="1"><B>Zami Aberman</B> </FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
      <TD>&nbsp; </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD></TR>
<TR>
  <TD  VALIGN=TOP>
  <P  STYLE="margin-top:2px" ALIGN=JUSTIFY><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P  ALIGN=JUSTIFY style="margin-right:10px;margin-top:2px"><FONT FACE="ARIAL" SIZE="1"><B>Israel Ben-Yoram</B> </FONT> </P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
      <TD>&nbsp; </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD></TR>
<TR>
  <TD  VALIGN=TOP>
  <P STYLE="margin-top:2px" ALIGN=JUSTIFY><FONT SIZE=1 FACE=ARIAL> &nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P  ALIGN=JUSTIFY style="margin-right:10px;margin-top:2px"><FONT FACE="ARIAL" SIZE="1"><B>Isaac Braun</B> </FONT> </P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
      <TD>&nbsp; </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD></TR>
<TR>
  <TD  VALIGN=TOP>
  <P STYLE="margin-top:3px" ALIGN=JUSTIFY><FONT SIZE=1 FACE=ARIAL>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P  ALIGN=JUSTIFY style="margin-right:10px;margin-top:2px"><FONT FACE="ARIAL" SIZE="1"><B>Mark Germain</B> </FONT> </P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
      <TD>&nbsp; </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD></TR>
<TR>
  <TD  VALIGN=TOP>
  <P STYLE="margin-top:2px" ALIGN=JUSTIFY><FONT SIZE=1 FACE=ARIAL> &nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P  ALIGN=JUSTIFY style="margin-right:10px;margin-top:2px"><FONT FACE="ARIAL" SIZE="1"><B>Hava Meretzki</B> </FONT> </P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
      <TD>&nbsp; </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD></TR>
<TR>
  <TD  VALIGN=TOP>
  <P STYLE="margin-top:2px" ALIGN=JUSTIFY><FONT SIZE=1 FACE=ARIAL> &nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P  ALIGN=JUSTIFY style="margin-right:10px;margin-top:2px"><FONT FACE="ARIAL" SIZE="1"><B>Nachum Rosman</B> </FONT> </P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
      <TD>&nbsp; </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD></TR>
<TR>
  <TD  VALIGN=TOP>
  <P STYLE="margin-top:2px" ALIGN=JUSTIFY><FONT SIZE=1 FACE=ARIAL> &nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P  ALIGN=JUSTIFY style="margin-right:10px;margin-top:2px"><FONT FACE="ARIAL" SIZE="1"><B>Doron Shorrer</B> </FONT> </P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
      <TD>&nbsp; </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD></TR>
<TR>
  <TD  VALIGN=TOP>
  <P STYLE="margin-top:2px" ALIGN=JUSTIFY><FONT SIZE=1 FACE=ARIAL> &nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P  ALIGN=JUSTIFY style="margin-right:10px;margin-top:2px"><FONT FACE="ARIAL" SIZE="1"><B>Shai Pines</B> </FONT> </P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>

<TR>
      <TD>&nbsp; </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD></TR>
<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT FACE="ARIAL" SIZE="1"><B>2.</B> </FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P  ALIGN=JUSTIFY style="margin-right:10px" ><FONT FACE="ARIAL" SIZE="1"><B>Approval of the Amended
and Restated 2005 Stock Option Plan of the Company, amending the current Amended 2005
Stock Option Plan in order to: (i) increase the number of shares of Common Stock
authorized for issuance thereunder from 1,990,000 to be equal to 16% of the number of
shares of Common Stock issued and outstanding on a fully diluted basis immediately prior
to the grant of securities; (ii) allow the issuance of shares of Common Stock and units
for such shares of Common Stock; and (iii) set the termination date thereof to be
December 31, 2018.</B> </FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3    FACE=WINGDINGS>o</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>

<TR>
      <TD>&nbsp; </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD></TR>
<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT FACE="ARIAL" SIZE="1"><B>3.</B> </FONT></P>
  </TD>
  <TD  VALIGN=TOP colspan=6>
  <P  ALIGN=JUSTIFY style="margin-right:10px" ><FONT FACE="ARIAL" SIZE="1"><B>In their discretion, the proxies are authorized to vote upon such other business as may properly come before the Stockholders Meeting. <BR><BR>
MARK X HERE IF YOU PLAN TO ATTEND THE MEETING.</B> <FONT size="3" face="Wingdings">o
</font></FONT>
</P></td>


 </TR>

</TABLE>
</div>
<BR><BR>

<BR clear="all">

<TABLE ALIGN=CENTER  BORDER=0   CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="10%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="16%"  VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="1%"  VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="2%"  VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="10%"  VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="8%"  VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="16%"  VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="2%"  VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="10%"  VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=bottom nowrap>
<P ALIGN=JUSTIFY><FONT FACE="ARIAL" SIZE="1"><B>&nbsp;&nbsp;Signature of Shareholder&nbsp;</B> </FONT></P>
  </TD>
  <TD   style="border: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD VALIGN=bottom>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD   VALIGN=bottom>
<P ALIGN=JUSTIFY><FONT FACE="ARIAL" SIZE="1"><B>Date:&nbsp;</B> </FONT></P>
  </TD>
  <TD  style="border: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD   VALIGN=bottom nowrap>
<P><FONT FACE="ARIAL" SIZE="1"><B>&nbsp;&nbsp;Signature of Shareholder&nbsp;</B> </FONT></P>
  </TD>
  <TD   style="border: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD VALIGN=bottom>
<P ALIGN=JUSTIFY><FONT FACE="ARIAL" SIZE="1"><B>&nbsp;&nbsp;Date:&nbsp;</B> </FONT></P>
  </TD>
  <TD   style="border: solid black 1px" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>

<TABLE ALIGN=CENTER  BORDER=0   CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="2%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="4%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="88%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
<P ALIGN=JUSTIFY><FONT FACE="ARIAL" SIZE="1"><B>&nbsp;&nbsp;&nbsp;Note:&nbsp;&nbsp;</B> </FONT></P>
  </TD>
  <TD  ROWSPAN="3" VALIGN=TOP>
<P align=justify style="margin-right:10px" ><FONT FACE="ARIAL" SIZE="1"><B>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> </FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>

</table>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<BR>
</body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
