<SEC-DOCUMENT>0001144204-12-007646.txt : 20120213
<SEC-HEADER>0001144204-12-007646.hdr.sgml : 20120213
<ACCEPTANCE-DATETIME>20120213145817
ACCESSION NUMBER:		0001144204-12-007646
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20120213
FILED AS OF DATE:		20120213
DATE AS OF CHANGE:		20120213

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			XTL BIOPHARMACEUTICALS LTD
		CENTRAL INDEX KEY:			0001023549
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-51310
		FILM NUMBER:		12598358

	BUSINESS ADDRESS:	
		STREET 1:		XTL BIOPHARMACEUTICALS LTD
		STREET 2:		C/O ALSTON & BIRD LLP, 90 PARK AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10016
		BUSINESS PHONE:		972 9 955 7080

	MAIL ADDRESS:	
		STREET 1:		85 MEDINAT HAYEHUDIM ST.
		STREET 2:		PITUACH, PO BOX 4033
		CITY:			HERZLIYA
		STATE:			L3
		ZIP:			46140
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>v302315_6k.htm
<DESCRIPTION>FORM 6-K
<TEXT>
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<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Form 6-K</B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Report of Foreign Private Issuer</B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Pursuant to Rule 13a-16 or 15d-16</B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>of the Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center">For the month of February, 2012</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center">Commission File Number: <B>000-51310</B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><U>XTL Biopharmaceuticals Ltd.</U></B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Translation of registrant&rsquo;s name
into English)</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>85 Medinat Hayehudim St., Herzliya<BR>
Pituach, PO Box 4033,</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Herzliya 46140, Israel</B></P>

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

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Address of principal executive offices)</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0">Indicate by check mark whether the registrant files or will
file annual reports under cover Form 20-F or Form 40-F.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center">Form 20-F&#9;<U> X </U>&#9;Form 40-F__</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#9;&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0">Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0">Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0">Indicate by check mark whether by furnishing the information
contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b)
under the Securities Exchange Act of 1934.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center">Yes ___&#9;No&#9;<U> X</U></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0">If &ldquo;Yes&rdquo; is marked, indicate below the file number
assigned to the registrant in connection with Rule 12g3-2(b): 82-<U> N/A </U>&#9;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Incorporation by Reference: This Form
6-K of XTL Biopharmaceuticals Ltd. dated February 13, 2012 is hereby incorporated by reference into the registration statements
on Form F-3 (File No. 333-141529, File No. 333-147024 and File No. 333-153055) filed by XTL Biopharmaceuticals Ltd. with the Securities
and Exchange Commission on March 23, 2007 , October 30, 2007 and August 15, 2008, respectively, and the registration statements
on Form S-8 (File No. 333-148085, File No. 333-148754 and File No. 333-154795) filed by XTL Biopharmaceuticals Ltd. with the Securities
and Exchange Commission on December 14, 2007, January 18, 2008, and October 28, 2008, respectively.</B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>XTL Biopharmaceuticals Announces<BR>
Summoning of an Annual General Meeting of the Company&rsquo;s<BR>
Shareholders to be Held on March&nbsp;19, 2012</B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Attached&nbsp;hereto is an English translation
(from Hebrew) of an announcement by XTL Biopharmaceuticals Ltd. regarding the convening of an annual general meeting of the Company&rsquo;s
shareholders.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>XTL Biopharmaceuticals Ltd.</B></P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0; text-align: center">(&ldquo;<B>the Company</B>&rdquo;)</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0; text-align: justify">February 13, 2012</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 42%; padding-right: 0; padding-left: 0; text-align: justify; line-height: 110%">To</TD>
    <TD STYLE="width: 3%; padding-right: 2.85pt; padding-left: 2.85pt; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify; line-height: 110%; width: 55%">To</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify; line-height: 110%">The Israel Securities Authority Ltd.</TD>
    <TD STYLE="padding-right: 2.85pt; padding-left: 2.85pt; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify; line-height: 110%">The Tel-Aviv Securities Stock Exchange Ltd.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify; line-height: 110%; font-weight: bold; text-decoration: underline">Through the Magna</TD>
    <TD STYLE="padding-right: 2.85pt; padding-left: 2.85pt; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify; line-height: 110%; font-weight: bold; text-decoration: underline">Through the Magna</TD></TR>
</TABLE>


<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0; text-align: justify">Dear Sirs/Mmes.,</P>



<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%; padding-right: 2.8pt; padding-left: 2.8pt; text-align: justify; line-height: 110%">Re:</TD>
    <TD STYLE="width: 93%; padding-right: 0; padding-left: 0; text-align: justify; line-height: 110%; font-weight: bold; border-bottom: Black 1pt solid">Immediate
    report on convening an annual general meeting of the Company&rsquo;s shareholders and on a substantial private offering in
    accordance with the Israeli Securities Regulations (Periodic and Immediate Reports), 1970, the Israeli Securities Regulations
    (Private Offering of Securities in a <FONT STYLE="letter-spacing: -0.1pt"><B>Listed
        Company), 2000 and the Companies Law, 1999</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is hereby pleased to present
an immediate report on summoning an annual general meeting of the Company&rsquo;s shareholders to be held on March&nbsp;19, 2012,
in accordance with the <FONT STYLE="letter-spacing: -0.1pt">Israeli Securities Regulations (Periodic and Immediate Reports), 1970,
the Israeli Securities Regulations (Private Offering of Securities in a Listed Company), 2000 </FONT>and in accordance with the
Companies Law, 1999 (&ldquo;<B>the Companies Law</B>&rdquo;), all as follows:</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>A.&#9;SUMMONING AN ANNUAL GENERAL MEETING</B></P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 28.35pt">1.</TD><TD STYLE="text-align: justify">On March&nbsp;19, 2012, at 08:30 am, a shareholders&rsquo; meeting will be held at the offices
of the Company&rsquo;s attorneys, Kantor &amp; Co., at 12 Abba Hillel Silver Road, Ramat-Gan, Israel, for discussing the following
resolutions:</TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 56.7pt"></TD><TD STYLE="width: 28.35pt">a.</TD><TD STYLE="text-align: justify"><I>Reappointing the directors</I> - the proposed wording of the resolution: ratifying the reappointment
of Messrs. Amit Yonay, Marc Allouche and David Grossman as directors in the Company until the next annual meeting. The voting on
each of those directors will be done individually.</TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 85.05pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 56.7pt"></TD><TD STYLE="width: 28.35pt">b.</TD><TD STYLE="text-align: justify"><I>Reappointing the external directors</I> - the proposed wording of the resolution: ratifying
the reappointment of Mr. Jaron Diament and Ms. Dafna Cohen as external directors in the Company for a second term starting March&nbsp;19,
2012. The voting on each of those external directors will be done individually.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 56.7pt"></TD><TD STYLE="width: 28.35pt">c.</TD><TD STYLE="text-align: justify"><I>Approving a bonus award to the Company&rsquo;s CEO</I> <I>subject to a fund raising </I>- the
proposed wording of the resolution: If the Company effects a fund raising during the thirty six (36) months period from the date
of this resolution, the Company will pay the CEO a bonus equal to 1.2% of the above fund raising amount, up to a maximum amount
of $200 thousand.</TD></TR></TABLE>

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

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

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

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

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 85.05pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 56.7pt"></TD><TD STYLE="width: 28.35pt">d.</TD><TD STYLE="text-align: justify">Subject to the approval of sub-section b above, the approval of a substantial private offering
to external directors (&ldquo;<B>the offerees</B>&rdquo;) as detailed in part B to this report. The voting on each of those offerees
will be done individually.</TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 85.05pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 28.35pt">2.</TD><TD STYLE="text-align: justify">The required majority in the annual general meeting (or in a postponed annual meeting (if any))
for approving the resolutions specified in paragraph 1(a), 1(b) and 1(d) above is a simple majority of the total votes of participating
shareholders.</TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 28.35pt">3.</TD><TD STYLE="text-align: justify">The required majority for approving the resolutions specified in paragraph 1(c) above is a majority
of the total votes attending provided that one of the below are met:</TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 85.05pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 56.7pt"></TD><TD STYLE="width: 28.35pt">(a)</TD><TD STYLE="text-align: justify">In counting to majority of the votes in the general meeting, the majority of the votes of shareholders
who are neither non-controlling shareholders in the Company nor have personal interest therein will be counted in approving the
appointment, except personal interest that is not the outcome of relations with the controlling shareholder participating in the
vote; in counting total votes of the above shareholders, abstention votes shall not be taken into account. The provisions of section
276 with the required modifications shall apply to those who have personal interest.</TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 85.05pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 56.7pt"></TD><TD STYLE="width: 28.35pt">(b)</TD><TD STYLE="text-align: justify">Total opponent votes of shareholders mentioned in sub-section (a) did not exceed two percent of
total voting rights in the Company.</TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 85.05pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">It is indicated despite
the fact that at the date of this report the Company has no controlling shareholder, as this term is defined by the Companies Law,
according to the Company&rsquo;s prospectus from February&nbsp;28, 2011, to decide on the election of external directors, the Company
considers Messrs. Alex Rabinovitch, David Bassa and Shalom Manova as controlling shareholders in the Company.</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 85.05pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 28.35pt">4.</TD><TD STYLE="text-align: justify">In the annual general meeting, a legal quorum will constitute the presence of at least two (2)
shareholders, by themselves or their representatives, holding together at least 33% of the total voting rights in the Company.
If at the elapse of half an hour from the meeting&rsquo;s scheduled time the legal quorum is not found, the meeting will be postponed
by one week for the same day, at the same time and venue as scheduled for the original meeting, or for a different date and/or
venue as determined by the board of directors in a notice to the shareholders. The postponed meeting will discuss the same agenda
as planned for the original meeting. If a legal quorum is not found in the postponed meeting at the elapse of half an hour from
the meeting&rsquo;s scheduled time, the two shareholders that are present, by themselves or their representatives, will constitute
a legal quorum and the meeting will be entitled to discuss the issues on the agenda.</TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 28.35pt">5.</TD><TD STYLE="text-align: justify">The date for establishing the shareholders&rsquo; entitlement to vote in the general meeting, as
stated in Section 182(c) to the Companies Law, is Sunday, February 19, 2012 (&ldquo;<B>the record date</B>&rdquo;). According to
the Companies Regulations (Proof of Share Ownership for Voting in the General Meeting), 2000, a shareholder that has a share registered
in its name at a member of the Stock Exchange whereby that share is included in the shares registered in the Company&rsquo;s Registrar,
and is interested in voting in the general meeting, must produce to the Company the Stock Exchange member&rsquo;s proof of the
shareholder&rsquo;s ownership over the share on the record date, as required by said regulations.</TD></TR></TABLE>

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

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

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

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

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 28.35pt">6.</TD><TD STYLE="text-align: justify">The Company&rsquo;s shareholders are entitled to participate and vote in the meeting by themselves
or through a legally certified agent. The document certifying the agent to vote (&ldquo;<B>the letter of appointment</B>&rdquo;)
and a power of attorney by virtue of which the letter of appointment was signed (if any) will be deposited with the Company&rsquo;s
attorneys at least 48 hours before the meeting begins.</TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 85.05pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 28.35pt">7.</TD><TD STYLE="text-align: justify">The Securities Authority&rsquo;s distribution site (&ldquo;<B>the distribution site</B>&rdquo;)
and website address of the Tel-Aviv Securities Stock Exchange Ltd. where the formats of proxy statements and position statements
can be found as they are defined in Section 88 to the Companies Law are: www.magna.isa.gov.il and www.tase.co.il, respectively.
Voting as per the proxy statement will be done on the second part of the proxy statement as published in the magna. A shareholder
may contact the Company directly and receive the formats of the proxy statement and position statements (if any). A Stock Exchange
member will e-mail a link to the formats of the proxy statement and position statements on the distribution site, at no charge,
to any shareholder that is not registered at the shareholders&rsquo; registrar and whose shares are registered at that Stock Exchange
member, if the shareholder so requests, provided that the notice is given with respect to a specific securities account and prior
to the record date. A shareholder whose shares are registered at a Stock Exchange member is entitled to receive the proof of ownership
from the Stock Exchange member through which it holds the shares at the Stock Exchange member&rsquo;s branch or via post office
to the shareholder&rsquo;s address in return for delivery fee only, if so requested. A request in this respect will be provided
in advance for a specific securities account. The proxy statement must be produced to the Company&rsquo;s attorneys to said address
so that the proxy statement reaches the Company&rsquo;s attorneys&rsquo; office not fewer than 72 hours before the date of convening
the meeting. The last date for producing position statements to the Company is up to ten days after the record date (&ldquo;<B>the
last date for delivering position statements</B>&rdquo;), namely Tuesday, February 28, 2012 and the last date for producing the
Board&rsquo;s response to the position statements is five days from the last date for delivering position statements, namely Sunday,
March 4, 2012.</TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 28.35pt">8.</TD><TD STYLE="text-align: justify">One or more shareholders that hold shares at a rate representing five percent or more of the total
voting rights in the Company and anyone who holds such rate out of the total voting rights that are not held by the controlling
shareholder in the Company, as defined in Section 286 to the Companies Law, may review the proxy statements as detailed in Regulation
10 to the Companies Regulations (Proxy Statements and Position Statements), 2005.</TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 28.35pt">9.</TD><TD STYLE="text-align: justify">The documents pertaining to this report may be reviewed at the Company&rsquo;s offices at 85 Medinat
Hayehudim Street, Herzliya, during regular office hours and by making an appointment at 972-9-9557080.</TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 28.35pt">10.</TD><TD STYLE="text-align: justify">The Company&rsquo;s representatives for handling this report are Mr. Ronen Kantor, Adv. and/or
Mr. Ron Sulema, Adv. of Kantor &amp; Co. Law Offices at 12 Abba Hillel Silver Road, 8<SUP>th</SUP> Floor, Ramat-Gan, Tel: 972-3-6133371.</TD></TR></TABLE>

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

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

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 28.35pt"><B>B.</B></TD><TD STYLE="text-align: justify"><B>APPROVING A SUBSTANTIAL PRIVATE OFFERING TO THE EXTERNAL DIRECTORS MR. JARON DIAMENT AND MRS.
DAFNA COHEN</B></TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 28.35pt"><B>1.</B></TD><TD STYLE="text-align: justify"><B>General </B></TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">On February&nbsp;12, 2012,
the Company&rsquo;s Board decided, subject to the approval of the re-election of the offerees for a second term and the substantial
private offering according to this report by the <FONT STYLE="letter-spacing: -0.1pt">meeting of the Company&rsquo;s shareholders,</FONT>
to allocate to the offerees, at no consideration, 300,000 unregistered options (150,000 options to each offeree) to purchase Ordinary
shares of the Company of NIS&nbsp;0.1 par value each under the terms prescribed in this report. It should be noted that the voting
on each of those offerees will be done individually.</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 28.35pt"><B>2.</B></TD><TD STYLE="text-align: justify"><B>The offerees</B></TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">The offerees will be elected
for a second term of office as external directors in the Company. The offerees are not interested parties within the meaning thereof
in section 270(5) of the Companies Law and will not be such after effecting the substantial private offering.</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 28.35pt"><B>3.</B></TD><TD STYLE="text-align: justify"><B>Details of the offered securities, their quantity and the consideration</B></TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">The allocation will be effected
according to the options plan adopted by the Company on August&nbsp;29, 2011 (&ldquo;the Plan&rdquo;) and this subject to the terms
detailed below.</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 85.05pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 56.7pt"></TD><TD STYLE="width: 28.35pt">3.1</TD><TD STYLE="text-align: justify">The Company will allocate to the offerees, at no consideration, 300,000 unregistered options (150,000
to each offeree) to purchase 300,000 Ordinary shares of the Company of NIS&nbsp;0.1 par value each (&ldquo;<B>the underlying shares</B>&rdquo;).</TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 85.05pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 56.7pt"></TD><TD STYLE="width: 28.35pt">3.2</TD><TD STYLE="text-align: justify">As of the date of this report, the offerees do not hold securities of the Company.</TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 85.05pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 56.7pt"></TD><TD STYLE="width: 28.35pt">3.3</TD><TD STYLE="text-align: justify">Assuming exercise of all quantity of options, the shares deriving from the exercise of the options
to be allocated to the offerees, as above, will constitute about 0.147% of the issued and paid-up share capital and about 0.132%
with full dilution.</TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 85.05pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 56.7pt"></TD><TD STYLE="width: 28.35pt">3.4</TD><TD STYLE="text-align: justify">The exercise price of the options allocated to the offerees is NIS&nbsp;0.58633 per option, reflecting
the average price of the share 3 trading days prior to the resolution of the Board.</TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 85.05pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 56.7pt"></TD><TD STYLE="width: 28.35pt">3.5</TD><TD STYLE="text-align: justify">The offeree will be entitled to receive the options and to exercise them over a maximal period
of 120 months from the date of their allocation, subject to the conditions stipulated in this report and subject to the periods
stipulated below:</TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 85.05pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 85.05pt"></TD><TD STYLE="width: 28.35pt">3.5.1</TD><TD STYLE="text-align: justify">33% of the quantity of the options may be exercised by the offerees immediately after their allocation.</TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 113.4pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 85.05pt"></TD><TD STYLE="width: 28.35pt">3.5.2</TD><TD STYLE="text-align: justify">67% of the quantity of the options may be exercised by the offerees in 24 equal parts every month
from the date of grant until two years elapse from the date of grant (&ldquo;<B>the vesting period</B>&rdquo;).</TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 113.4pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 56.7pt"></TD><TD STYLE="width: 28.35pt">3.6</TD><TD STYLE="text-align: justify">The allocation will be effected according to section 102 to the Income Tax Ordinance (New Version),
1961 (&ldquo;<B>the Ordinance</B>&rdquo;).</TD></TR></TABLE>

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

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

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 85.05pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 56.7pt"></TD><TD STYLE="width: 28.35pt">3.7</TD><TD STYLE="text-align: justify">Shares deriving from the options will confer the right to receive invitations to participate and
to vote at the Company&rsquo;s meetings. All Company&rsquo;s shares, including shares deriving from the options, have equal rights
in relation to the capital amounts paid or credited as paid on their par value in all related to dividend and any other distribution
and to participate in the excess of the Company&rsquo;s assets upon liquidation.</TD></TR></TABLE>

<P STYLE="font: 10pt/50% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 56.7pt"></TD><TD STYLE="width: 28.35pt">3.8</TD><TD STYLE="text-align: justify">After the allocation of the options to the offerees, the exercise price and the number of unexercised
options will be adjusted in the scenarios described below:</TD></TR></TABLE>

<P STYLE="font: 10pt/50% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 85.05pt"></TD><TD STYLE="width: 28.35pt">3.8.1</TD><TD STYLE="text-align: justify">In the scenario of a transaction<FONT STYLE="font-size: 8pt"><SUP>1</SUP></FONT>,
                                                                     the unexercised options will be taken into account or replaced
                                                                     with an appropriate number of shares of the same type or
                                                                     other securities of the succeeding company (or the parent
                                                                     company or the subsidiary of the succeeding company) as they
                                                                     were distributed to the Company&rsquo;s shareholders in connection
                                                                     with the transaction and in respect thereof. In such scenario
                                                                     and/or replacement of options, relevant adjustments to the
                                                                     purchase price will be made that shall reflect this transaction
                                                                     and all the other conditions and restrictions in the notice
                                                                     letter of the grant will remain in tact including but not
                                                                     limited to the vesting schedule, all as determined by the
                                                                     committee or the Board and their determination shall be at
                                                                     their sole and absolute discretion. The Company will inform
                                                                     the offeree on the transaction in the manner and way that
                                                                     it deems fit at least 7 days before the record date of the
                                                                     transaction.</TD></TR></TABLE>

<P STYLE="font: 10pt/50% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 85.05pt"></TD><TD STYLE="width: 28.35pt">3.8.2</TD><TD STYLE="text-align: justify">Despite the abovementioned and subject to applicable law, the Board or the committee have the full
authority and power to determine that certain notice letters of grant will contain a section instructing that if in a particular
transaction described in section 3.8.1 above the succeeding company (or the parent company or the subsidiary of the succeeding
company) does not agree to commit to options or replace them, the vesting dates will be accelerated such that an unexercised options
or part of an unexercised option will vest immediately 7 days prior to the record date of the transaction.</TD></TR></TABLE>

<P STYLE="font: 10pt/50% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 85.05pt"></TD><TD STYLE="width: 28.35pt">3.8.3</TD><TD STYLE="text-align: justify">For the purpose of section 3.8.1 above, an option will be considered as committed or replaced if
after the transaction the option confers the right to purchase or receive for any of the underlying shares immediately prior to
the transaction the consideration (whether in shares, options, cash or other securities or property) that the shareholders received
on the record date of the transaction (and if these holders were offered to choose the consideration then the type of consideration
chosen by the holders of the majority of the outstanding shares); except that if the consideration, as above, received in the transaction
is other than Ordinary shares (or equivalent thereto) of the succeeding company, or the parent company or the subsidiary, the Board&rsquo;s
committee may, at the consent of the succeeding company, instruct that the consideration receivable upon the exercise of the option
shall be only Ordinary shares (or equivalent thereto) of the succeeding company or the parent company or its subsidiary according
to the fair value at the market based on the consideration received by the holders of most of the outstanding shares in the transaction;
and except that if the committee decides, at its discretion, that instead of the commitment to the options or their replacement
with the options of the succeeding company or the parent company or its subsidiary, the options as above will be replaced with
any other type of asset or property including a reasonable amount of cash in these circumstances.</TD></TR></TABLE>

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

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><SUP>1</SUP></FONT></TD><TD STYLE="text-align: justify">&ldquo;<B>A transaction</B>&rdquo; - (1) merger, acquisition or reorganization of the Company with
one or more entities where the Company is not the surviving entity; (2) sale of all or substantially all of the Company&rsquo;s
assets.</TD></TR></TABLE>



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

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

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

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

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<TD STYLE="width: 85.05pt"></TD><TD STYLE="width: 28.35pt">3.8.4</TD><TD STYLE="text-align: justify">The Board or the committee have the full authority and power to determine that certain notice letters
of grant will contain a section instructing that if the Company is voluntarily terminated or liquidated while there are unexercised
options, the Company will immediately inform the holders of the unexercised options of the winding up as above and the option holders
will have 7 days to exercise all the options they hold that have vested prior to that date but not yet exercised according to the
exercise arrangement stated herein. After the elapse of the 7-day period, as above, all the remaining outstanding options expire
immediately.</TD></TR></TABLE>

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<TD STYLE="width: 85.05pt"></TD><TD STYLE="width: 28.35pt">3.8.5</TD><TD STYLE="text-align: justify">If the outstanding options of the Company are modified or replaced in any point of time by declaration
of cash dividend, share dividend (bonus shares), distribution of underwriting rights, split of shares, combination or replacement
of shares, refinancing, split or any other event by the Company or of the Company and to the extent that the above indeed occurs,
the quantity, type and the series of shares according to the outline or subject to another option granted in the past and the purchase
price will be adjusted in an appropriate and fair manner in order to maintain the relative number of shares and the total purchase
price unchanged. If the above occurs, the type and total number of underlying shares to be issued as a result of the exercise of
the options will be adjusted appropriately to the extent that the Board determines and its decision will be final.</TD></TR></TABLE>

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<TD STYLE="width: 56.7pt"></TD><TD STYLE="width: 28.35pt">3.9</TD><TD STYLE="text-align: justify">The underlying shares will be recorded in the name of the registration company through which at
that time the Company&rsquo;s shares have been registered.</TD></TR></TABLE>

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<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 28.35pt"><B>4.</B></TD><TD STYLE="text-align: justify"><B>The economic value of the offered securities </B></TD></TR></TABLE>

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<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">According to the Black and
Scholes formula, the economic value of all the options granted to each offeree on the date the Company&rsquo;s Board accepted the
resolution was approximately NIS&nbsp;50,410, NIS&nbsp;0.336068 per option. The assumptions that formed the basis for calculating
the economic value of the options are as follows: share price of NIS&nbsp;0.584, exercise price of NIS&nbsp;0.58633, term of the
options - 10 years, annual volatility of 44.348%, capitalization rate of 2.5% in accordance with the Tel-Aviv Stock Exchange guidelines
&ndash; &ldquo;Margin Calculation Parameters update&rdquo; from February 7, 2012 and dividend yield at the rate of 0%.</P>

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

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

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

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 28.35pt"><B>5.</B></TD><TD STYLE="text-align: justify"><B>The issued share capital at the Company and the holdings of interested parties and the public</B></TD></TR></TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0in; text-indent: 0in; text-align: justify"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; text-align: left; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; text-align: center; line-height: 110%; font-weight: bold">Before the substantial private offering under this report</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; text-align: center; line-height: 110%; font-weight: bold">Immediately after the substantial private offering under this report</TD></TR>
<TR>
    <TD STYLE="width: 31%; vertical-align: bottom; text-align: left; line-height: 110%; font-weight: bold">Name</TD>
    <TD STYLE="width: 1%; vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="width: 10%; vertical-align: bottom; border-bottom: windowtext 1pt solid; text-align: center; line-height: 110%; font-weight: bold">Number of shares</TD>
    <TD STYLE="width: 1%; vertical-align: bottom; text-align: center; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 10%; vertical-align: bottom; border-bottom: windowtext 1pt solid; text-align: center; line-height: 110%; font-weight: bold">Unregistered options</TD>
    <TD STYLE="width: 1%; vertical-align: bottom; text-align: center; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 10%; vertical-align: bottom; border-bottom: windowtext 1pt solid; text-align: center; line-height: 110%; font-weight: bold">Share options (series 2)</TD>
    <TD STYLE="width: 1%; vertical-align: bottom; text-align: center; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 8%; vertical-align: bottom; border-bottom: windowtext 1pt solid; text-align: center; line-height: 110%; font-weight: bold">% in equity and voting</TD>
    <TD STYLE="width: 1%; vertical-align: bottom; border-top: windowtext 1pt solid; text-align: center; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 8%; vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; text-align: center; line-height: 110%; font-weight: bold">% in equity and voting (fully diluted)</TD>
    <TD STYLE="width: 1%; vertical-align: bottom; text-align: center; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 8%; vertical-align: bottom; border-bottom: windowtext 1pt solid; text-align: center; line-height: 110%; font-weight: bold">% in equity and voting</TD>
    <TD STYLE="width: 1%; vertical-align: bottom; border-top: windowtext 1pt solid; text-align: center; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 8%; vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; text-align: center; line-height: 110%; font-weight: bold"><B>%
    in equity and voting (fully <BR>
    diluted) <FONT STYLE="font-size: 8pt"><SUP>2</SUP></FONT></B></TD></TR>
<TR>
    <TD STYLE="border-top: windowtext 1pt solid; vertical-align: top; text-align: left; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 2.85pt; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 2.85pt; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; line-height: 110%">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; text-align: left; line-height: 110%">Alex Rabinovitch <FONT STYLE="font-size: 8pt"><SUP>3</SUP></FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">43,132,361</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">573,750</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">21.14%</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">19.28%</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">21.14%</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">19.25%</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: left; line-height: 110%">David Bassa</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">21,705,987</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">10.64%</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">9.57%</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">10.64%</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">9.56%</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; text-align: left; line-height: 110%">Shalom Manova</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">17,175,573</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">8.42%</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">7.58%</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">8.42%</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">7.57%</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: left; line-height: 110%">David Grossman <FONT STYLE="font-size: 8pt"><SUP>4</SUP></FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">1,610,000</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">0.71%</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">0.71%</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; text-align: left; line-height: 110%">Amit Yonay <FONT STYLE="font: 8pt Times New Roman, Times, Serif"><SUP>5</SUP></FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">150,000</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">0.07%</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">0.07%</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: left; line-height: 110%">Marc Allouche <FONT STYLE="font: 8pt Times New Roman, Times, Serif"><SUP>6</SUP></FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">150,000</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">0.07%</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">0.07%</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; text-align: left; line-height: 110%">Ronen Twito <FONT STYLE="font: 8pt Times New Roman, Times, Serif"><SUP>7</SUP></FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">1,400,000</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">0.62%</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">0.62%</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: left; line-height: 110%">Moshe Mittelman <FONT STYLE="font: 8pt Times New Roman, Times, Serif"><SUP>8</SUP></FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%">5,590,896</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%">640,000</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%">2.74%</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%">2.75%</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%">2.74%</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; line-height: 110%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%">2.74%</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; text-align: left; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: left; line-height: 110%; font-weight: bold">Total interested parties and officers</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%; font-weight: bold">87,604,817</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%; font-weight: bold">3,950,000</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%; font-weight: bold">-</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%; font-weight: bold">42.94%</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%; font-weight: bold">40.65%</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%; font-weight: bold">42.94%</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%; font-weight: bold">40.59%</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; text-align: left; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: left; line-height: 110%">The public <FONT STYLE="font: 8pt Times New Roman, Times, Serif"><SUP>9</SUP></FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%">116,426,733</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%">280,000</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%">17,883,750</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%">57.06%</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%">59.35%</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%">57.06%</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; line-height: 110%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%">59.28%</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; line-height: 110%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 110%">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: left; line-height: 110%; font-weight: bold">Total</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%; font-weight: bold">204,031,550</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%; font-weight: bold">4,230,000</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%; font-weight: bold">18,457,500</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%; font-weight: bold">100%</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%; font-weight: bold">100%</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%; font-weight: bold">100%</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%; font-weight: bold">99.87%</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; text-align: left; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; line-height: 110%">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: left; line-height: 110%">Offerees</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%">300,000</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%">-</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right; line-height: 110%">0.13%</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; text-align: left; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; line-height: 110%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; line-height: 110%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: left; line-height: 110%; font-weight: bold">Total</TD>
    <TD STYLE="text-align: right; line-height: 110%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 2.25pt double; text-align: right; line-height: 110%; font-weight: bold">204,031,550</TD>
    <TD STYLE="text-align: right; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 2.25pt double; text-align: right; line-height: 110%; font-weight: bold">4,530,000</TD>
    <TD STYLE="text-align: right; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 2.25pt double; text-align: right; line-height: 110%; font-weight: bold">18,457,500</TD>
    <TD STYLE="text-align: center; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 2.25pt double; text-align: right; line-height: 110%; font-weight: bold">100%</TD>
    <TD STYLE="text-align: center; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 2.25pt double; text-align: right; line-height: 110%; font-weight: bold">100%</TD>
    <TD STYLE="text-align: center; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 2.25pt double; text-align: right; line-height: 110%; font-weight: bold">100%</TD>
    <TD STYLE="text-align: right; line-height: 110%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 2.25pt double; text-align: right; line-height: 110%; font-weight: bold">100%</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0in; text-indent: 0in; text-align: justify"></P>



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

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0in; text-indent: 0in; text-align: justify"></P>



<P STYLE="margin: 0"></P>





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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><SUP>2</SUP></FONT></TD><TD STYLE="text-align: justify">Assuming that all share options (series 2) and unregistered
options will be exercised into Ordinary shares of the Company.</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><SUP>3</SUP></FONT></TD><TD STYLE="text-align: justify">23,574,902 Ordinary shares of the Company and share options
(series 2) are held by Green Forest Holdings Ltd. a company that, to the best of the Company&rsquo;s knowledge, is jointly and
equally owned by the spouses Alex and Sagit Rabinovitch.</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">4</FONT></TD><TD STYLE="text-align: justify">A director and the Company&rsquo;s CEO.</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><SUP>5</SUP></FONT></TD><TD STYLE="text-align: justify">The chairman of the Company&rsquo;s Board.</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><SUP>6</SUP></FONT></TD><TD STYLE="text-align: justify">A director in the Company.</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><SUP>7</SUP></FONT></TD><TD STYLE="text-align: justify">The Company&rsquo;s CFO.</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><SUP>8</SUP></FONT></TD><TD STYLE="text-align: justify">A medical director in the Company.</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><SUP>9</SUP></FONT></TD><TD STYLE="text-align: justify">The public - as defined in the guidance of the Tel-Aviv
Securities Stock Exchange Ltd.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0in; text-indent: 0in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0in; text-indent: 0in; text-align: justify">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->
<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 85.05pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 85.05pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 28.35pt"><B>6.</B></TD><TD STYLE="text-align: justify"><B>The consideration and the way the consideration is determined </B></TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 85.05pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 85.05pt; text-align: justify; text-indent: -28.35pt">The
consideration for the options and the share price are as detailed in section 3 above.</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 85.05pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">The grant of options is intended
to promote the benefit of the Company and its objectives by granting incentives to offerees who are candidates for a second term,
for the office of an external director at the Company. The consideration was determined by the Company&rsquo;s Board and it adheres
to the Company&rsquo;s previous policy regarding exercise price of options issued to directors.</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 28.35pt"><B>7.</B></TD><TD STYLE="text-align: justify"><B>Approvals required to effect the allocation according to the offering</B></TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 85.05pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">The allocation according to
the offering is subject to the approval of the Company&rsquo;s Board which, as above, was given on February&nbsp;12, 2012, the
approval of the general meeting of the Company&rsquo;s shareholders and its convention according to this report, and the approval
of the Tel-Aviv Securities Stock Exchange Ltd. to list for trade the underlying shares deriving from the options. The Company intends
to apply to obtain the approval, as above, close to the date of holding the meeting.</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">&nbsp;</P>

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<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 28.35pt"><B>8.</B></TD><TD STYLE="text-align: justify"><B>Agreements regarding rights to the Company&rsquo;s securities </B></TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">To the best of the Company&rsquo;s
knowledge, as of the date of the publication of this immediate report, the offerees and the holders of the Company&rsquo;s securities
have no agreements, whether written or oral, regarding the purchase and/or sale of the Company&rsquo;s securities and/or regarding
the voting rights in the Company.</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">Further, to the best of the
Company&rsquo;s knowledge, there is neither a substantial shareholder nor officer who has a personal interest in the substantial
private offering other than the offerees themselves.</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify; text-indent: -28.35pt"><B>&nbsp;</B></P>

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<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 28.35pt"><B>9.</B></TD><TD STYLE="text-align: justify"><B>Impediment or restrictions on carrying out transactions with the securities being offered</B></TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">According to the provisions
of section 102 to the Ordinance and the regulations issued thereunder, the above options and the shares deriving from the exercise
of the options and all rights conferred by virtue thereof, including the bonus shares, will be deposited for the offerees with
a trustee and this until the elapse of 24 months from the date on which the options were issued to the trustee.</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">A restriction applies to the
options and the shares deriving from their exercise according to section 15c to the Securities Law, 1968 and the Securities Regulations
(Details with regard to Sections 15a to 15c to the Law), 2000.</P>

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

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

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

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 28.35pt"><B>10.</B></TD><TD STYLE="text-align: justify"><B>The date of allocation of the securities</B></TD></TR></TABLE>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">Subject to the receipt of the
approvals stated in section 7 above, the Company will effect the allocation of shares shortly after the above approvals are obtained.</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 311.85pt; text-align: center">Yours truly,</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 311.85pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 311.85pt; text-align: center"><B>XTL Biopharmaceuticals
Ltd.</B></P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify; text-indent: -28.35pt">&nbsp;</P>

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<P STYLE="font: 10pt/110% Times New Roman, Times, Serif; margin: 0 0 0 28.35pt; text-align: justify; text-indent: -28.35pt"></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Contact:</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Investor Relations, XTL Biopharmaceuticals
Ltd.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Tel: +972 9 955 7080, Email: ir@xtlbio.com</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Cautionary Statement</B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Some of the statements included in this
Form 6-K may be forward-looking statements that involve a number of risks and uncertainties. For those statements, we claim the
protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Pursuant to the requirements
of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#9;</P>



<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0"></P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 59%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 12pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 12pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 36%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 12pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 12pt; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 0; padding-left: 0; line-height: 12pt; font-weight: bold; text-align: justify">XTL BIOPHARMACEUTICALS LTD.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 12pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 12pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 12pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 12pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 12pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 12pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; line-height: 12pt; text-align: justify">Date: February 13, 2012</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; line-height: 12pt; text-align: justify">By:</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; line-height: 12pt; text-align: justify; border-bottom: Black 1pt solid">/s/ David Grossman</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 12pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; line-height: 12pt; text-align: justify">Name:</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; line-height: 12pt; text-align: justify">David Grossman</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 12pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; line-height: 12pt; text-align: justify">Title:</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; line-height: 12pt; text-align: justify">Chief Executive Officer</TD></TR>
</TABLE>


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