<SEC-DOCUMENT>0001144204-12-065405.txt : 20121129
<SEC-HEADER>0001144204-12-065405.hdr.sgml : 20121129
<ACCEPTANCE-DATETIME>20121129083101
ACCESSION NUMBER:		0001144204-12-065405
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20121128
FILED AS OF DATE:		20121129
DATE AS OF CHANGE:		20121129

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:		121230382

	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>v329421_6k.htm
<DESCRIPTION>FORM 6-K
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#9;<B>XTL Biopharmaceuticals Ltd.&#9;</B></P>

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Form 20-F&#9;<FONT STYLE="font-family: Wingdings">&#120;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form 40-F&#9;
<FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Yes&nbsp;<FONT STYLE="font-family: Wingdings">&#168;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;
<FONT STYLE="font-family: Wingdings">&#120;</FONT></P>

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

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Incorporation by Reference: This Form
6-K of XTL Biopharmaceuticals Ltd. dated November 29, 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 Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>XTL Biopharmaceuticals Ltd. (the &ldquo;Company&rdquo;)
Provides Updated Extraordinary <BR>
General Shareholder Meeting Convening Letter </B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Attached&nbsp;hereto is an English translation (from Hebrew)
<FONT STYLE="background-color: white">of an immediate report by XTL Biopharmaceuticals Ltd. as published on the Tel-Aviv Stock
Exchange, following the immediate report of November 27, 2012 regarding the delay and updates to the Extraordinary General Shareholders
Meeting. </FONT></P>



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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="color: red"><STRIKE>October
</STRIKE></FONT><FONT STYLE="color: blue"><U>November </U></FONT><FONT STYLE="color: red"><STRIKE>24</STRIKE></FONT><FONT STYLE="color: blue"><U>27</U></FONT><FONT STYLE="color: black">,
2012 </FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 38%">To The Securities Authority</TD>
    <TD STYLE="width: 62%">To The Tel Aviv Stock Exchange Ltd. (&quot;TASE&quot;)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold">Through the Magna</TD>
    <TD STYLE="font-weight: bold">Through the Magna</TD></TR>
<TR>
    <TD><U>www.isa.co.il</U></TD>
    <TD><U>www.tase.co.il</U></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>An immediate report with respect
to convening an extraordinary general meeting of Company Shareholders in accordance with the Israeli Securities Regulations (Periodic
and Immediate Reports) 1970, and the Israeli Securities Regulations (Private Offering of Securities in a Listed Company) 2000.</U></B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: black">Pursuant to
the immediate reports published by the Company on April 15, 2012, on June 19, 2012 and on September 10, 2012 and in accordance
with the Israeli Securities Regulations (Private Offering of Securities in a Listed Company) 2000, (&quot;<B>Private Offering Regulations</B>&quot;),
Regulation 36 to the Israeli Securities Regulations (Periodic and Immediate Reports) 1970 (&quot;<B>Periodic and Immediate Reports
Regulations</B>&quot;), and in accordance with the resolution of the Company's Board of Directors of October 21, 2012, the Company
hereby announces the convening of an extraordinary general meeting of the Company's Shareholders (&quot;<B>the General Meeting</B>&quot;
or &quot;<B>Meeting</B>&quot;), which will convene on </FONT><FONT STYLE="color: red"><STRIKE>Wednesday</STRIKE></FONT><FONT STYLE="color: blue"><U>Thursday</U></FONT><FONT STYLE="color: black">,
</FONT><FONT STYLE="color: red"><STRIKE>November </STRIKE></FONT><FONT STYLE="color: blue"><U>December </U></FONT><FONT STYLE="color: red"><STRIKE>28</STRIKE></FONT><FONT STYLE="color: blue"><U>6</U></FONT><FONT STYLE="color: black">,
2012, at 9:00 AM, at the law offices Kantor &amp; Co., 12 Abba Hillel Silver Rd., 8<SUP>th </SUP>Floor, Ramat&ndash;Gan, Israel
and with the resolutions detailed in this report on its agenda as follows:</FONT></P>

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

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 25.5pt; text-align: left"><B>1.</B></TD><TD STYLE="text-align: justify"><B>Condensed Description of the Transaction and its Main
Terms</B></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify">On October 21, 2012 The Company's
Board of Directors approved convening a Meeting of Company Shareholders object of this report for the purpose of approving the
Company's engagement in a Purchase Agreement with Kitov Pharmaceuticals Ltd. (hereinafter: &quot;<B>Kitov</B>&quot;) according
to which a new private company will be merged, wholly owned 100% by the Company which will be established only for the purpose
of the merger (hereinafter: &quot;<B>NewCo</B>&quot;), by way of a reverse triangular merger with Kitov following which NewCo will
cease to exist (hereinafter: &quot;<B>the Purchase Agreement</B>&quot;). As a result of completing the Purchase Agreement, Kitov
will become a private company wholly owned (100%) by the Company and Kitov shareholders and additional service providers of Kitov
(hereinafter: &quot;<B>the Offerees </B>&quot;) will receive shares and warrants for Company shares as well as various milestone
payments throughout the development process of Kitov products, and all as detailed below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 16.1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 19.5pt; font-size: 10pt">1.1.</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="color: black">On the date of completion of the Purchase Agreement, the Company will pay the Offerees an amount of USD 140 thousand in cash and issue: (1) 8,</FONT><FONT STYLE="color: red"><STRIKE>709,052</STRIKE></FONT><FONT STYLE="color: blue"><U>686,733</U></FONT><FONT STYLE="color: black"> ordinary shares of the Company to Kitov shareholders (hereinafter: &quot;<B>Completion Shares</B>&quot;); and (2) </FONT><FONT STYLE="color: red"><STRIKE>218,728</STRIKE></FONT><FONT STYLE="color: blue"><U>241,048</U> </FONT>unregistered warrants to Kitov Service Providers for the purchase of<FONT STYLE="color: blue"> </FONT><FONT STYLE="color: red"><STRIKE>218,728</STRIKE></FONT><FONT STYLE="color: blue"><U>241,048 </U></FONT><FONT STYLE="color: black">Company shares (hereinafter; &quot;<B>Service Providers Warrants</B>&quot;). </FONT><FONT STYLE="color: blue"><U>The Service Providers Warrants will be exercisable for a period of five (5) years from the closing date at an exercise price of NIS 0.01 per warrant<SUP>1</SUP>. </U></FONT><FONT STYLE="color: black">In addition to the securities aforementioned, the Company will issue the Offerees 612,800 warrants for the purchase of 612,800 Company shares (hereinafter: &quot;<B>The Additional Warrants</B>&quot;). The Additional Warrants will be exercisable in return for an exercise consideration equivalent to NIS 0.01 per Additional Warrant<SUP>2</SUP>, at the earlier of either the passing of 18 months from the Completion Date or after the Company has completed raising cumulative capital in the amount of USD 4 million. Alternatively, the Additional Warrants will be annulled immediately upon the Offerees receipt of USD 160 thousand from the Company. All the aforesaid securities issued to the Offerees at the date of completion of the Purchase Agreement constitute 3.59% of the Company's fully diluted issued and outstanding share capital. For additional details regarding the securities issued by the Company according to the Purchase Agreement see paragraph 4 to the Transaction Report.</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 16.1pt"></TD><TD STYLE="width: 19.5pt"><FONT STYLE="color: black">1.2.</FONT></TD><TD><FONT STYLE="color: black">Pursuant
to the completion of the Purchase Agreement and subject to the fulfillment of the milestones contingent to the progress of development
of Kitov drugs, as stated the Purchase Agreement, the Company will pay the Offerees up to seven (7) additional payments that are
likely to jointly amount to a total of USD 61 million (hereinafter: &quot;<B>Milestone Payment</B>&quot;). The Company has the
sole discretion at any time to convert any of the milestone payments, by means of an issuance of up to 91,828,110 Company shares</FONT><FONT STYLE="color: blue"><U><SUP>3</SUP></U></FONT><FONT STYLE="color: black">&nbsp;(assuming that all milestones have been completed), which will constitute up to approximately
25.70% of the Company's issued and outstanding share capital (fully diluted) immediately upon completing the Purchase Agreement
(or approximately 28.37% of the Company's fully diluted issued and outstanding share capital including the securities issued according
to paragraph 1.1 above). Milestones Payments will be paid as long as the said milestones are fulfilled during the course of 5
years from the Completion Date.</FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The securities issued according to the Purchase Agreement are
brought for approval by the Company by means of an issuance of Company shares through an extraordinary Private Placement in accordance with the
Israeli Securities Regulations (Private Offering of Securities in a Listed Company, 2000) (hereinafter: &quot;<B>the Regulations</B>&quot;).</P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-decoration: none"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: blue"><U><SUP>1 </SUP>Following the
planned 1:10 share consolidation, the exercise price of Service Providers Warrants will be NIS 0.1 per each Warrant. It
should be noted that the difference between the exercise price of the Service Provider Warrants and the nominal value of the
Company shares will be covered at the date of exercising the Service Providers Warrants, should and to the extent that they
will be exercised, by transferring in the Company's financial statements the total sum of the difference from the premium on
shares clause to the share capital clause.</U></FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-decoration: none"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-decoration: none"><SUP>2 </SUP>After the planned 1:10
share consolidation, the exercise price of 61,280 Additional Warrants will be NIS 0.1 per each Additional Warrant. It should be
noted that the difference between the exercise price of the Additional Warrants and the nominal value of the Company shares will
be covered at the date of exercising the Special Warrants, should and to the extent that they will be exercised, by transferring
in the Company's financial statements the total sum of the difference from the premium on shares clause to the share capital clause.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: blue"><U><SUP>3 </SUP>It should be noted that in the
case where the Company exercise its right to convert any of the Milestone Payments to shares, the Offerees shall pay the Company
an amount of NIS 0.1 for each share which will be allocated to them for the Milestone Payments. It should be noted that the number
of shares that will be issued in accordance with the Milestone Payments set forth above, will be adjusted (increase or decrease)
in case the Company will perform a division or consolidation of its share capital or in case the Company distributes bonus shares
to its shareholders by reducing the shares proportionately in case of division and consolidation, or by adding the number of shares
the Offerees will be entitled as bonus shares if the Company was exercising its right to pay the Milestone Payments by way of issuing
its shares.</U></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">It should be noted that in light of the
fact that the transaction, object of this report, does not comply with the definition 'Business Combination', the accounting treatment
of the transaction as aforesaid is as purchase of intellectual property against the issuance of shares/warrants so that following
the completion of the transaction the intellectual property will be recorded in the Company books in accordance with the value
set in the valuation report conducted by an external valuator and enclosed as <B>Appendix C</B> to the Transaction Report.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: black">For details
about Kitov see a description of Kitov </FONT><FONT STYLE="color: blue"><U>and Kitov's financial statements as of December 31,
2011 </U></FONT><FONT STYLE="color: black">attached to the Transaction Report as <B>Appendix A </B></FONT><FONT STYLE="color: blue"><U>and<B>
Appendix A1</B></U></FONT><FONT STYLE="color: black">.</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 25.5pt"><B>2.</B></TD><TD STYLE="text-align: justify"><B><U>Description of the topics on the agenda</U></B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify">The Purchase Agreement, including
the extraordinary private placement in respect thereof, is presented for <U>approval as a whole</U>, together with all the engagements
and resolution required for its fulfillment, as detailed below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 25.5pt"></TD><TD STYLE="width: 25.5pt">2.1.</TD><TD STYLE="text-align: justify">Approve the Company's engagement in a Purchase Agreement including an extraordinary Private Offering
in respect thereof, which includes the Completion Shares, Additional Warrants, Service Providers Warrants, and payment of milestones
or alternatively, at the Company's sole discretion, allocation of shares in accordance with the milestones stipulated in the Purchase
Agreement,.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 25.5pt"></TD><TD STYLE="width: 25.5pt">2.2.</TD><TD STYLE="text-align: justify">Approve to consolidate the Company's capital at a ratio of 10:1 in a manner that every 10 Company
shares of NIS 0.1 par value each will be consolidated as one share of NIS 1.0 par value each.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 25.5pt"></TD><TD STYLE="width: 25.5pt">2.3.</TD><TD STYLE="text-align: justify">Approve the appointments, in accordance with the Company's Articles of Association, of Messers
Dr. Paul Waymack and Mr. Simcha Rock as Directors in the Company until next year's annual general meeting. The vote regarding each
of the directors as aforesaid will be done separately. Declarations of candidates for appointment as directors are enclosed as
Appendix B to the report.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 25.5pt"></TD><TD STYLE="width: 25.5pt">2.4.</TD><TD STYLE="text-align: justify">Approve the Company&rsquo;s engagement in a service agreement with Dr. Paul Waymack with regard
to his position as Chairman of the Company's Board of Directors and as executive in charge of the clinical and regulatory development
of all the Company's products in return for a monthly management fee of USD 9,166 plus VAT, as applicable. For details regarding
the service provider agreement see paragraph 15.4 of the Transaction Report.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify">It is clarified hereto that
the approval of the Audit Committee and the Company's Board of Directors is given to the Company's engagement in the Purchase Agreement
and for executing transactions and engagements entailed in this transaction, <U>as a whole</U>, including the appointments and
agreements detailed in paragraphs 2.1 &ndash; 2.4 above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify"><B>It is hereby clarified that
all the resolutions on the meeting's agenda are <U>interconnected</U></B> resolutions, namely that the rejection of one of the
<B>resolutions may be deemed as a rejection of the other resolutions even though another resolution has been accepted and approved
by the extraordinary general meeting of the Company&rsquo;s shareholders.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 25.5pt; text-align: left"><B>3.</B></TD><TD STYLE="text-align: justify"><B><U>The private placement Offerees and the status as
interested party</U></B></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify">According to the Purchase Agreement
object of this Transaction Report, the Offerees in the Private Placement are Kitov shareholders and Additional Service Providers
of Kitov. The names of the Offerees alongside mention of their holdings in Kitov at the time of this report and their holdings
in the Company close to the transaction Completion Date are detailed hereunder:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="border: black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold; text-align: center">Holding in Kitov</TD>
    <TD COLSPAN="4" STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold; text-align: center">Holding in the Company after the completion date of the Purchase Agreement4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; width: 14%; font-weight: bold">Offeree's name</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; width: 13%; font-weight: bold; text-align: center">Nr. of shares</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; width: 9%; font-weight: bold; text-align: center">% Holding</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; width: 24%; font-weight: bold; text-align: center">Shares</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; width: 18%; font-weight: bold; text-align: center">Warrants</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; width: 11%; font-weight: bold; text-align: center">% Holding&nbsp;</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; width: 11%; font-weight: bold; text-align: center">% Holdings fully diluted&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">JPW PCH LLC5</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">8,000,000</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&nbsp;80%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">7,119,907</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">488,708</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">2.99%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">2.86%</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Moshe Laster</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">2,000,000</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&nbsp;20%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right"><FONT STYLE="color: black">1,</FONT><FONT STYLE="color: red"><STRIKE>589,145</STRIKE></FONT><FONT STYLE="color: blue"><U>566,826 </U></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right"><FONT STYLE="color: red"><STRIKE>109,078</STRIKE></FONT><FONT STYLE="color: blue"><U>107,546 </U></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right"><FONT STYLE="color: black">0.</FONT><FONT STYLE="color: red"><STRIKE>67</STRIKE></FONT><FONT STYLE="color: blue"><U>66</U></FONT><FONT STYLE="color: black">% </FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right"><FONT STYLE="color: black">0.</FONT><FONT STYLE="color: red"><STRIKE>64</STRIKE></FONT><FONT STYLE="color: blue"><U>63</U></FONT><FONT STYLE="color: black">% </FONT></TD></TR>
<TR>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Simcha Rock</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">-</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">-</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">-</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right"><FONT STYLE="color: red"><STRIKE>23,851</STRIKE></FONT><FONT STYLE="color: blue"><U>47,703 </U></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">-</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right"><FONT STYLE="color: black">0.</FONT><FONT STYLE="color: red"><STRIKE>01</STRIKE></FONT><FONT STYLE="color: blue"><U>02</U></FONT><FONT STYLE="color: black">% </FONT></TD></TR>
<TR>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"><FONT STYLE="color: black">Clal
    Underwriting</FONT><FONT STYLE="color: blue"><U><SUP>6</SUP></U></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">-</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">-</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">-</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">71,554</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">-</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.03%</TD></TR>
<TR>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Ronen Kantor7</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">-</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">-</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">3,792,908</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">174,486</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">1.59%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">1.49%</TD></TR>
<TR>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Charity Fund8</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">-</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">-</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">-</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">23,851</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">-</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.01%</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; font-weight: bold">Total</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">10,000,000</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&nbsp;100%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="color: black"><B>12,</B></FONT><B><FONT STYLE="color: red"><STRIKE>501,960</STRIKE></FONT><FONT STYLE="color: blue"><U>479,641 </U></FONT></B></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="color: red"><B><STRIKE>891,528</STRIKE></B></FONT><B><FONT STYLE="color: blue"><U>913,848 </U></FONT></B></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right"><FONT STYLE="color: black">5.</FONT><FONT STYLE="color: red"><STRIKE>25</STRIKE></FONT><FONT STYLE="color: blue"><U>24</U></FONT><FONT STYLE="color: black">% </FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">5.04%</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify">&nbsp;&nbsp;</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0"><SUP>4&nbsp;</SUP>The data presented is as
at the date of completion of the Agreement and prior to the fulfillment of any of the milestones. Additionally, it should be noted
that the figures detailed in this table are prior to executing the share consolidation of Company capital at a 10:1 ratio</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 5.25pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>5&nbsp;</SUP>A Company incorporated in the United States controlled
by Messers Dr. Peter Hoyle and Dr. Paul Waymack</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-decoration: none"><FONT STYLE="color: blue"><U><SUP>6&nbsp;</SUP>To
the best of the Company's knowledge, Clal Finance Underwriting Ltd is a private company, which as of the date of this report is
held by Clal Finance Ltd (approximately 10.1%), Mr. Zachi Sultan (approximately 56.2%), Messrs Ronen Weissberg, Yuval Ben-Ze'ev
and Naor El-Hai (through a company they own - approximately 24.7%, Ms. Tal Rubinstein (through a company she owns - approximately
5% and Mr. Jonathan Cohen (through a company he owns - approximately 4%).</U></FONT></P>



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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.25pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 5.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>7</SUP> It should be noted that Mr. Ronen Kantor holds
prior to the private placement object of this Report 3,792,908 Company ordinary shares of NIS 0.1 par value each of the Company
and 60,000 warrants exercisable into 60,000 Company ordinary shares of NIS 0.1 par value each.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 5.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>8</SUP> <FONT STYLE="color: black">Kitov shareholders
decided to donate 0.25% of Kitov to the Pelech charity</FONT><FONT STYLE="color: blue"><U>. To the best of the Company's knowledge,
Pelech Charity was registered on May 2, 1984 (register number: 580040418), whose aim is to establish, maintain, manage and develop
a religious experimental high school for girls, including residence and boarding school which is managed by Mr. Michael Hochstein.
</U></FONT><FONT STYLE="color: red"><STRIKE>.</STRIKE></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 8.85pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 8.85pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 8.85pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.6pt; text-align: left">assuming that any or all of the milestones will
be fulfilled and the Company will choose, ensuing the payment of the milestone to issue to the Offerees Company shares, to the
best of the Company's knowledge, JPW PCH LLC <FONT STYLE="color: black">hereinafter: &quot;<B>JPW</B>&quot;), will become an interested
party in the Company and this in light of the fact that following the issuances ensuing the payment of the milestones aforementioned,
it will hold shares constituting over 5% of the Company's issued and outstanding capital. </FONT><FONT STYLE="color: blue"><U>Also,
it should be noted that if any of the Offerees will seek to become a holder of more than 25% of the Company's issued and outstanding
share capital, all restrictions and obligations set forth in relation to a tender offer under the Israeli Companies Law-1999 and
the Israeli Securities Regulations (Tender Offer)-2000 shall apply on the Offerree.</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.6pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 25.5pt"><B>4.</B></TD><TD><B><U>The terms, number and percentage the offered securities constitute in the Company's share capital after the issuance</U></B></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="color: black">4.1.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: black">In consideration for the assignment of Kitov's share capital in
                                                                                                                      full in a manner that Kitov will become a company fully owned (100%) by the Company, the Company will allocate to the
                                                                                                                      Offerees, at the Date of completion of the Purchase Agreement 8,</FONT><FONT STYLE="color: red"><STRIKE>709,052</STRIKE></FONT><FONT STYLE="color: blue"><U>686,733 </U></FONT><FONT STYLE="color: black">ordinary
                                                                                                                      shares of NIS 0.1 par value each of the Company, at a price per share of NIS 1.</FONT><FONT STYLE="color: blue"><U>651</U></FONT><FONT STYLE="color: red"><STRIKE>641</STRIKE></FONT><FONT STYLE="color: black"><SUP>9 </SUP>(&quot;<B>the
                                                                                                                      Price Per Share in a Private Placement </B>&quot;) and also will allocate to Kitov's service providers </FONT><FONT STYLE="color: red"><STRIKE>218,728</STRIKE></FONT><FONT STYLE="color: blue"><U>241,048</U></FONT><FONT STYLE="color: black">
                                                                                                                      warrants, unregistered, for the purchase of </FONT><FONT STYLE="color: red"><STRIKE>218,728</STRIKE></FONT><FONT STYLE="color: blue"><U>241,048</U></FONT><FONT STYLE="color: black">
                                                                                                                      Company
                                                                                                                      shares (&quot;<B>Services Providers Warrants</B>&quot;). In addition to the aforementioned securities, the Company will
                                                                                                                      allocate 612,800 warrants for the purchase of 612,800 Company shares to Kitov shareholders and Kitov service providers
                                                                                                                      (hereinafter: &quot;<B>The Additional Warrants</B>&quot;). The Additional Warrant will be exercisable against an exercise
                                                                                                                      price equivalent to NIS 0.01 for each Additional Warrant<SUP>10</SUP> (hereinafter: &quot;<B>Additional Warrants
                                                                                                                      Exercise Price</B>&quot;), at the earlier of either the passing of 18 months from the Completion Date or after the Company
                                                                                                                      has completed raising cumulative capital in the amount of USD 4 million. Alternatively, the Additional Warrants will be
                                                                                                                      cancelled immediately upon the Offerees receipt of USD 160 thousand from the Company or the passing of five (5) years, i.e.
                                                                                                                      until October 23, 2017 ('<B>The Latest Date for Exercising the Additional Warrants</B>&quot;). All the aforesaid securities
                                                                                                                      issued to the Offerees at the Date of completion of the Purchase Agreement constitute approximately 3.59% of the Company's
                                                                                                                      fully diluted issued and outstanding share capital.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.6pt; text-indent: -19.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.6pt; text-indent: -19.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; font-size: 10pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt">4.2.</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="color: black">The Service Providers' Warrant will be exercisable </FONT><FONT STYLE="color: red"><STRIKE>on any trading day starting at the date of their issuance and </STRIKE></FONT><FONT STYLE="color: black">for a period of five (5) years</FONT><FONT STYLE="color: blue"><U> from the closing date</U></FONT><FONT STYLE="color: red"><STRIKE>, i.e., until October 23, 2017 </STRIKE></FONT><FONT STYLE="color: black">(&quot;<B>The Latest Date for Exercising Service</B></FONT> <FONT STYLE="color: black"><B>Providers Warrants</B>&quot;) at an exercise price </FONT><FONT STYLE="color: blue"><U>of NIS 0.01 per warrant<SUP>11 </SUP></U></FONT><FONT STYLE="color: red"><STRIKE>equivalent to the nominal value of a Company share</STRIKE> </FONT><FONT STYLE="color: black">(&quot;<B>Exercise Price of Service Providers Warrants</B>&quot;).</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.6pt; text-indent: -19.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.6pt; text-indent: -19.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.6pt; text-indent: -19.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.6pt; text-indent: -19.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: black"><SUP>9 </SUP>It should be noted
that the price of the share in the private placement according to this report is determined through negotiations between the Company
and the Offerees based, <I>inter alia</I>, on the share's average trading price on the Tel-Aviv Stock Exchange during the 21 days
prior to the date of approval by the Company's Board of Directors and also, in consideration of the fact that the securities offered
according to this report are &quot;restricted&quot; both by voluntary restriction and according to the Purchase Agreement and
also pursuant to provisions of paragraph 15c of the Israeli Securities Law 1968, and the Israeli Securities Regulations (details
pertaining paragraphs 15a and 15c of the Law), 2000. The price per share in the private placement according to the Tel Aviv Stock
Exchange was calculated by way of dividing the relative part in Kitov's valuation (out of a total valuation of Kitov (approximately
USD 40.</FONT><FONT STYLE="color: red"><STRIKE>2 </STRIKE></FONT><FONT STYLE="color: blue"><U>5 </U></FONT><FONT STYLE="color: black">million)
USD 36 million, which are related to future consideration upon milestone payments </FONT><FONT STYLE="color: blue"><U>(based on
a NIS-USD exchange rate of 3.83, which is the exchange rate as of October 23, 2012) </U></FONT><FONT STYLE="color: black">were
discounted of the total valuation of Kitov according to the valuation for this calculation) according to the valuation in a total
of issued securities that are issued in the Completion Date.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: black"><SUP>10 </SUP>After the planned 1:10 share consolidation, the exercise
price of 61,280 Additional Warrants will be NIS 0.1 per each Additional Warrant.It should be noted that the disparity between
the exercise price of the Additional Warrants and the nominal value of the Company shares will be covered at the date of exercising
the Special Warrants, should and to the extent that they will be exercised, by transferring in the Company's financial statements
the total sum of the disparity from</FONT> the premium on shares clause to the share capital clause.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.6pt; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">4.3.</TD><TD STYLE="text-align: justify">Service Providers Warrants or and Additional Warrants
not exercised until the expiry of latest exercising date will be annulled and will not provide the Offerees any right or claim
whatsoever.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.6pt; text-align: justify; text-indent: -19.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">4.4.</TD><TD STYLE="text-align: justify">For details pertaining to the rights deriving from the
shares and the shares that will derive from exercising the Service Providers Warrants and the Additional Warrants including how
they will be listed and adjusted, see paragraph 12 hereunder.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.6pt; text-align: justify; text-indent: -19.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">4.5.</TD><TD STYLE="text-align: justify">For details pertaining to the percentage which the securities
constitute in the voting rights and the Company's issued and outstanding share capital after the issuance and assuming that the
Offerees will convert and exercise their issued securities according to this report, see paragraph 3 above.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.6pt; text-align: justify; text-indent: -19.5pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify"><FONT STYLE="color: black">In
accordance with the provisions of the Purchase Agreement, in consideration for the issuance of 8,</FONT><FONT STYLE="color: red"><STRIKE>709,052</STRIKE></FONT><FONT STYLE="color: blue"><U>686,733</U></FONT><FONT STYLE="color: black">
ordinary shares of NIS 0.1 par value each. of the Company, the issuance of the Service Providers Warrants and Additional Warrants
(as defined above) to the Offerees, the Offerees will assign to NewCo all of Kitov shares which they hold and constitute 100% of
Kitov's issued capital so that upon completion of the transaction, object of this report, the Offerees will hold approximately
3.</FONT><FONT STYLE="color: red"><STRIKE>66</STRIKE></FONT><FONT STYLE="color: blue"><U>65</U></FONT><FONT STYLE="color: black">%
of the Company's issued and outstanding share capital and approximately 3.59% on a fully diluted basis and the Company will hold
(through NewCo) 100% of Kitov's issued and outstanding share capital (&quot;<B>The Consideration</B>&quot;).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify"><FONT STYLE="color: black">It
should be noted that in accordance with the provisions of the Purchase Agreement, the Company has an undertaking to pay throughout
the process of development of Kitov products various milestone, in cash, payments that can jointly amount to a total of approximately
USD 61 million. Alternatively, the Company is entitled to pay any of the milestone payments, or all of them, by issuing up to
91,828,110 shares, all at the Company's sole discretion and subject to the fulfillment of the milestones as detailed in paragraph
12.8 hereunder</FONT><FONT STYLE="color: blue"><U><SUP>12</SUP></U></FONT><FONT STYLE="color: black">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: blue"><U><SUP>11&nbsp;</SUP>Following the
planned 1:10 share consolidation, the exercise price of Service Providers Warrants will be NIS 0.1 per each Warrant. It should
be noted that the difference between the exercise price of the Service Provider Warrants and the nominal value of the Company
shares will be covered at the date of exercising the Service Providers Warrants, should and to the extent that they will be exercised,
by transferring in the Company's financial statements the total sum of the difference from the premium on shares clause to the
share capital clause.</U></FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-decoration: none"><FONT STYLE="color: blue"><U><SUP>12
</SUP>It should be noted that in the case where the Company exercise its right to convert any of the Milestone Payments to shares,
the Offerees shall pay the Company an amount of NIS 0.1 for each share which will be allocated to them for the Milestone Payments.</U></FONT></P>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 0.25in"><B>6.</B></TD><TD STYLE="text-align: justify"><B><U>The price of the Company shares in the extraordinary private placement and their quoted market
price on the stock exchange</U></B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">The price per share at
the Private Placement in accordance with this report as aforesaid in paragraph 4.1 above was determined through negotiations
between the Company and the Offerees bases, <I>inter alia</I>, on the share's average trading price on the Tel-Aviv Stock
Exchange during the 21 days prior to the date of approval by the Company's Board of Directors and also, in consideration of
the fact that the offered securities according to this report are &quot;restricted&quot; both by voluntary restriction
according to Purchase Agreement and also in accordance with the provisions of paragraph 15c of the Israeli Securities Law
1968, and the Israeli Securities Regulations (details pertaining paragraphs 15a and 15c of the Law), 2000. The price per
share on the stock exchange on the day before to the date of this report is NIS <FONT STYLE="color: black">1.296. The price
per share in the Private Placement is higher than the share price on the stock exchange on the day before the date of this
report by approximately </FONT><FONT STYLE="color: red"><STRIKE>26.6</STRIKE></FONT><FONT STYLE="color: blue"><U>27.4</U></FONT><FONT STYLE="color: black">%.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 0.25in"><B>7.</B></TD><TD STYLE="text-align: justify"><B><U>Names of directors who have personal interest in the private placement and the nature of
the personal interest</U></B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">To the best of the Company's
knowledge none of the directors serving on the Company's Board of Directors have personal interest in the private Offering object
of this report.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 0.25in"><B>8.</B></TD><TD STYLE="text-align: justify"><B><U>Announcement of convening
                                                                    an extraordinary general meeting of the Company's shareholders</U></B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify"><FONT STYLE="color: black">In
accordance with the Israeli Companies Law, 1999 (&quot;<B>the Companies Law</B>&quot;), an announcement is hereby provided of the
convening of an extraordinary general meeting of the Company's shareholders to be held on </FONT><FONT STYLE="color: red"><STRIKE>Wednesday</STRIKE></FONT><FONT STYLE="color: blue"><U>Thursday</U></FONT><FONT STYLE="color: black">,
</FONT><FONT STYLE="color: red"><STRIKE>November </STRIKE></FONT><FONT STYLE="color: blue"><U>December </U></FONT><FONT STYLE="color: red"><STRIKE>28</STRIKE></FONT><FONT STYLE="color: blue"><U>6</U></FONT><FONT STYLE="color: black">,
2012 at 09:00 a.m. at the law offices of Kantor &amp; Co. on 12 Abba Hillel Silver, 8th floor, Ramat-Gan, Israel with on its agenda
a Purchase Agreement including an extraordinary Private Placement in respect thereof, as detailed above presented for approval,
<U>as a whole</U>, together with all the resolutions and engagements required for its completion, as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 25.5pt"></TD><TD STYLE="width: 25.5pt">8.1.</TD><TD STYLE="text-align: justify">Approve the Company's engagement in a Purchase Agreement including an extraordinary Private Placement
in respect thereof, which includes the Completion Shares, Additional Warrants, Service Providers' Warrants, payment of the milestones
or alternatively, at the Company's sole discretion, allocation of shares in accordance with the milestones stipulated in the Purchase
Agreement.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 25.5pt"></TD><TD STYLE="width: 25.5pt">8.2.</TD><TD STYLE="text-align: justify">Approve to consolidate the Company's capital at a ratio of 10:1 in a manner that every 10 Company
shares of NIS 0.1 par value each will be consolidated as one share of NIS 1.0 par value each.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 25.5pt"></TD><TD STYLE="width: 25.5pt">8.3.</TD><TD STYLE="text-align: justify">Approve the appointments, in accordance with the Company's Articles of Association, of Messers
Dr. Paul Waymack and Mr. Simcha Rock as Directors in the Company until next year's annual general meeting. The vote regarding each
of the directors as aforesaid will be done separately. Declarations of candidates for appointment as directors are enclosed as
Appendix B to the report.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 25.5pt"></TD><TD STYLE="width: 25.5pt">8.4.</TD><TD STYLE="text-align: justify">Approve the Company&rsquo;s engagement in a service agreement with Dr. Paul Waymack with regard
to his position as Chairman of the Company's Board of Directors and as manager in charge of the clinical and regulatory development
of all the Company's products in return for a monthly management fee of USD 9,166 plus VAT, as applicable. For details regarding
the service provider agreement see paragraph 15.4 of the Transaction Report.</TD></TR></TABLE>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>It is hereby clarified that all the
resolutions on the meeting's agenda are <U>interconnected</U> resolutions, namely that the rejection of one of the resolutions
may be deemed as a rejection of the other resolutions even though another resolution has been accepted and approved by the extraordinary
general meeting of the Company&rsquo;s shareholders.</B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 0.35in">8.5.</TD><TD STYLE="text-align: justify"><U>Meeting venue and date</U></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.35in; text-align: left"><FONT STYLE="color: black">8.5.1.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: black">The&#9;extraordinary general
meeting will convene on </FONT><FONT STYLE="color: red"><STRIKE>Wednesday</STRIKE></FONT><FONT STYLE="color: blue"><U>Thursday</U></FONT><FONT STYLE="color: black">,
</FONT><FONT STYLE="color: red"><STRIKE>November </STRIKE></FONT><FONT STYLE="color: blue"><U>December </U></FONT><FONT STYLE="color: red"><STRIKE>28</STRIKE></FONT><FONT STYLE="color: blue"><U>6</U></FONT><FONT STYLE="color: black">,
2012 at 09:00 AM at the law offices of Kantor &amp; Co. on 12 Abba Hillel Silver, 8th floor, Ramat-Gan, Israel. A deferred meeting,
if necessary, will convene on </FONT><FONT STYLE="color: red"><STRIKE>Wednesday</STRIKE></FONT><FONT STYLE="color: blue"><U>Thursday</U></FONT><FONT STYLE="color: black">,
December </FONT><FONT STYLE="color: red"><STRIKE>5</STRIKE></FONT><FONT STYLE="color: blue"><U>13</U></FONT><FONT STYLE="color: black">,
2012 at the same place and time.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 51pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.35in; text-align: left">8.5.2.</TD><TD STYLE="text-align: justify">In the extraordinary general meeting, a legal quorum
will constitute the presence of at least two (2) shareholders, represented by themselves or by their proxies, who hold or represent
together at least 33.33% of the voting rights in the Company. If at the elapse of thirty minutes from the meeting's scheduled
date, the legal quorum is not achieved, the meeting will be automatically deferred to the same day of the following week, at the
same time and place as scheduled for the original meeting; or to a different time or place as decided by the board of directors
in an announcement to the shareholders. If in such deferred meeting no legal quorum is obtained within thirty minutes from the
scheduled date, two shareholders that are present by themselves or by a proxy will form a legal quorum and the meeting will be
entitled to discuss the issues on the agenda.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 51pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.35in; text-align: left">8.5.3.</TD><TD STYLE="text-align: justify">The date for establishing the shareholders' right to
vote in the general meeting, as stipulated in Section 182 to the Israeli Companies Law, is Monday, October 29, 2012 (&quot;<B>the
meeting participation record date</B>&quot;).</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 51pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.35in; text-align: left">8.5.4.</TD><TD STYLE="text-align: justify">Any existing shareholder of the Company on the record
date, whether or not the shares are registered in its name or are held by it through a member of the Stock Exchange, is entitled
to participate in the meeting by itself or via a proxy. In accordance with the Israeli Companies Regulations (Proof of Share Ownership
for Voting in General Meetings), 2000, a Company shareholder whose shares are held by a member of the Stock Exchange will be able
to participate in said meeting by itself or via a proxy provided that an original proof of Company share ownership on the meeting
participation record date is delivered to the Company before the meeting (to be obtained by that member of the Stock Exchange).
Any documents appointing proxies (&quot;<B>the letters of appointment</B>&quot;) as well as the original authorizations under
which the letters of appointment (if any) were signed must be deposited with the Company's registered headquarters up to 48 hours
prior to the date of the meeting.</TD>
</TR></TABLE>

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

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.35in; font-size: 10pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.35in; font-size: 10pt">8.5.5.</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">A written format of the voting paper and statements of position, if any, can be found at the Israel Securities Authority's site at <U>www.magna.isa.gov.il</U></FONT> <FONT STYLE="font-size: 10pt">and at the TASE's site at <U>www.tase.co.il</U>. In addition, a shareholder may apply to the Company directly for receiving the written format of the voting paper and statements of position, if any. A member of the Stock Exchange will send, at no consideration, via e-mail, a link to the written format of the voting paper and statements of position, if any, to each shareholder that is not registered with the Company's shareholders' registrar and whose shares are listed with that member of the Stock Exchange, if the shareholder has notified the member of the Stock Exchange of its wish and provided that the notice was made with respect to a certain securities account and prior to the record date. Any shareholder whose shares are listed with a member of the Stock Exchange is entitled to receive proof of ownership from the relevant member of the Stock Exchange at the member of the Stock Exchange's branch or by mail to their address in return for payment of delivery fees only, if so requested, and this application will be granted in advance to the relevant securities account. Pursuant to the Israeli Companies Regulations (Voting Paper and Statements of Position), 2005, that shareholder will vote on the second part of the voting paper and specify the manner of voting and deliver it to the Company or mail it via registered mail whereby the proof of ownership must reach the Company's headquarters no later than 72 hours prior to the meeting date.</FONT></TD></TR>
</TABLE>


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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.35in; text-align: left">8.5.6.</TD><TD STYLE="text-align: justify">The Company does not allow voting via the internet.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 51.1pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.35in; text-align: left">8.5.7.</TD><TD STYLE="text-align: justify">One or more shareholders that hold at least five percent
or more of total voting rights and also hold such rate of total voting rights that are not held by the controlling shareholder
in the Company, as defined in Section 286 to the Israeli Companies Law, are entitled to review the voting papers as detailed in
Regulation 10 to the Israeli Companies Regulations (Voting Paper and Statements of Position), 2005.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 76.6pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.35in; text-align: left">8.5.8.</TD><TD STYLE="text-align: justify">The last date for producing statements of position is
within ten days after the meeting participation record date (&quot;<B>the last statement of position date of delivery</B>&quot;),
namely: Thursday, November 8, 2012 and the last date for producing the board of directors' response to the statements of position
is five days after the last statement of position date of delivery, namely Tuesday, November 13, 2012.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 76.6pt; text-align: justify; text-indent: -25.5pt">&nbsp;</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: 0.75in; text-align: left">8.6.</TD><TD STYLE="text-align: justify"><U>The required decision passing majority</U></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</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: 0.25in"></TD><TD STYLE="width: 0.5in; text-align: left">8.6.1.</TD><TD STYLE="text-align: justify">The majority required for passing of the decision mentioned
in paragraphs 8.1 &ndash; 8.4 above is an ordinary majority
of the voting participants.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify">&nbsp;</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">9.</TD><TD STYLE="text-align: justify"><U>Review of Documents</U></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">The documents pertaining to
this report may be reviewed at the law offices of Kantor &amp; Co. on 12 Abba Hillel Silver, 8<SUP>th</SUP> floor, Ramat-Gan, Israel
during standard work hours and after advance coordination by telephone: +(972)-3-6133371.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">October 24, 2012</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 38%">To The Securities Authority</TD>
    <TD STYLE="width: 62%">To The Tel Aviv Stock Exchange Ltd. (&quot;TASE&quot;)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold">Through the Magna</TD>
    <TD STYLE="font-weight: bold">Through the Magna</TD></TR>
<TR>
    <TD><U>www.isa.co.il</U></TD>
    <TD><U>www.tase.co.il</U></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>An immediate report regarding an
extraordinary private placement pursuant to the Securities Regulations (Private Offering of Securities in a Listed Company) 2000.and
pursuant to Regulation 36 of the Israeli Securities Regulations (Periodic and Immediate Reports) 1970 and with respect to convening
an extraordinary general meeting that will have on its agenda, inter alia, approval of an extraordinary private offering, in accordance
with the purchase agreement signed between the Company and Kitov Pharmaceuticals Ltd.</U></B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 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"><B>10.</B></TD><TD STYLE="text-align: justify"><B><U>Introduction</U></B></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On September 9, 2012 the Company's
board of directors approved the Company's engagement in a Purchase Agreement with Kitov Pharmaceuticals Ltd. (hereinafter: &quot;<B>Kitov</B>&quot;)
according to which a new private company will merge, wholly owned 100% by the Company which will be established only for the purpose
of the merger (hereinafter: &quot;<B>NewCo</B>&quot;), by way of a reverse triangular merger with Kitov following which NewCo will
cease to exist (hereinafter: &quot;<B>the Purchase Agreement</B>&quot;). As a result of completing the Purchase Agreement, Kitov
will become a private company wholly owned (100%) by the Company and Kitov shareholders and additional service providers of Kitov
(hereinafter: &quot;<B>the Offerees </B>&quot;) will receive shares and warrants for Company shares as well as payments of various
milestones throughout the development process of Kitov products, all as detailed below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</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: 0.25in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="color: black">10.1.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: black">On the date of completion of the Purchase Agreement, the Company
                                                                                                                      will issue: (1) 8,</FONT><FONT STYLE="color: red"><STRIKE>709,052</STRIKE></FONT><FONT STYLE="color: blue"><U>686,733</U></FONT><FONT STYLE="color: black">
                                                                                                                      ordinary
                                                                                                                      shares of the Company to Kitov shareholders (hereinafter: &quot;<B>Completion Shares</B>&quot;); and (2) </FONT><FONT STYLE="color: red"><STRIKE>218,728</STRIKE></FONT><FONT STYLE="color: blue"><U>241,048</U></FONT><FONT STYLE="color: black">
                                                                                                                      unregistered
                                                                                                                      warrants for the purchase of </FONT><FONT STYLE="color: red"><STRIKE>218,728</STRIKE></FONT><FONT STYLE="color: blue"><U>241,048</U></FONT><FONT STYLE="color: black">
                                                                                                                      Company shares to Kitov Service Providers (hereinafter; &quot;<B>Service Providers Warrants</B>&quot;). </FONT><FONT STYLE="color: blue"><U>The
                                                                                                                      Service Providers' Warrant will be exercisable for a period of five (5) years from the closing date (&quot;<B>The Latest
                                                                                                                      Date
                                                                                                                      for Exercising Service Providers Warrants</B>&quot;) at an exercise price of NIS 0.01 per warrant<SUP>13</SUP>
                                                                                                                      (&quot;<B>Exercise Price of Service Providers Warrants</B>&quot;).</U></FONT><FONT STYLE="color: black">In addition to the
                                                                                                                      securities aforementioned, the Company will issue to the Offerees 612,800 warrants for the purchase of</FONT> 612,800 Company shares (hereinafter:
&quot;<B>The Additional Warrants</B>&quot;). The Additional Warrants will be exercisable in return for an exercise consideration
equivalent to NIS 0.01 per Additional Warrant<SUP>14</SUP>, at the earlier of either the passing of 18 months from the completion
date or after the Company has completed raising cumulative capital in the amount of USD 4 million. Alternatively, the Additional
Warrants will be annulled immediately upon the Offerees receipt of USD 160 thousand from the Company. All the aforesaid securities
issued to the Offerees at the date of completion of the Purchase Agreement constitute 3.59% of the Company's fully diluted issued
and outstanding share capital. For additional details regarding the securities issued by the Company according to the Purchase
Agreement see paragraph 4 to the Transaction Report.</TD>
</TR></TABLE>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: blue"><U><SUP>13 </SUP></U></FONT><FONT STYLE="color: red"><STRIKE></STRIKE></FONT><FONT STYLE="color: blue"><U>Following
the planned 1:10 share consolidation, the exercise price of Service Providers Warrants will be NIS 0.1 per each Warrant. It should
be noted that the difference between the exercise price of the Service Provider Warrants and the nominal value of the Company
shares will be covered at the date of exercising the Service Providers Warrants, should and to the extent that they will be exercised,
by transferring in the Company's financial statements the total sum of the difference from the premium on shares clause to the
share capital clause.</U></FONT></P>



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

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left"><FONT STYLE="color: black">10.2.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: black">Pursuant
                                                                                                                       to the
                                                                                                                       completion
                                                                                                                       of the
                                                                                                                       Purchase
                                                                                                                       Agreement
                                                                                                                       and subject
                                                                                                                       to the
                                                                                                                       fulfillment
                                                                                                                       of the
                                                                                                                       milestones
                                                                                                                       contingent
                                                                                                                       to the
                                                                                                                       progress
                                                                                                                       of the
                                                                                                                       development
                                                                                                                       of Kitov
                                                                                                                       products,
                                                                                                                       as stated
                                                                                                                       in the
                                                                                                                       Purchase
                                                                                                                       Agreement,
                                                                                                                       the Company
                                                                                                                       will pay
                                                                                                                       the Offerees
                                                                                                                       up to seven
                                                                                                                       (7) additional
                                                                                                                       payments
                                                                                                                       that are
                                                                                                                       likely
                                                                                                                       to jointly
                                                                                                                       amount
                                                                                                                       to a total
                                                                                                                       of approximately
                                                                                                                       USD 61
                                                                                                                       million
                                                                                                                       (hereinafter:
                                                                                                                       &quot;<B>Milestone
                                                                                                                       Payment</B>&quot;)</FONT><FONT STYLE="color: blue"><U><SUP>15</SUP></U></FONT><FONT STYLE="color: black">.
                                                                                                                       The Company
                                                                                                                       has the
                                                                                                                       sole discretion
                                                                                                                       at any
                                                                                                                       time to
                                                                                                                       convert
                                                                                                                       any of
                                                                                                                       the milestone
                                                                                                                       payments,
                                                                                                                       by means
                                                                                                                       of an issuance
                                                                                                                       of up to
                                                                                                                       91,828,110
                                                                                                                       Company
                                                                                                                       shares
                                                                                                                       (assuming
                                                                                                                       that all
                                                                                                                       milestones
                                                                                                                       have been
                                                                                                                       completed),
                                                                                                                       which will
                                                                                                                       constitute
                                                                                                                       up to approximately
                                                                                                                       25.70%
                                                                                                                       of the
                                                                                                                       Company's
                                                                                                                       issued
                                                                                                                       and outstanding
                                                                                                                       share capital
                                                                                                                       (fully
                                                                                                                       diluted)
                                                                                                                       immediately
                                                                                                                       upon completing
                                                                                                                       the Purchase
                                                                                                                       Agreement
                                                                                                                       (or approximately
                                                                                                                       28.37%
                                                                                                                       of the
                                                                                                                       Company's
                                                                                                                       fully diluted
                                                                                                                       issued
                                                                                                                       and outstanding
                                                                                                                       share capital
                                                                                                                       including
                                                                                                                       the securities
                                                                                                                       issued
                                                                                                                       according
                                                                                                                       to paragraph
                                                                                                                       10.1 above).
                                                                                                                       Milestones
                                                                                                                       Payments
                                                                                                                       will be
                                                                                                                       paid as
                                                                                                                       long as
                                                                                                                       the said
                                                                                                                       milestones
                                                                                                                       are fulfilled
                                                                                                                       during
                                                                                                                       the course
                                                                                                                       of 5 years
                                                                                                                       from the
                                                                                                                       date of
                                                                                                                       Completion
                                                                                                                       of the
                                                                                                                       Purchase
                                                                                                                       Agreement.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 44.6pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 19.25pt; text-align: justify">The securities issued according
to the Purchase Agreement are presented for approval by the Company by means of an issuance of Company shares through an extraordinary
private placement in accordance with the Israeli Securities Regulations (Private Offering of Securities in a Listed Company, 2000)
(hereinafter: &quot;<B>the Regulations</B>&quot;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 19.25pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 19.25pt; text-align: justify"><FONT STYLE="color: black">For
details about Kitov see a description of Kitov </FONT><FONT STYLE="color: blue"><U>and Kitov's financial statements as of December
31, 2011</U></FONT><FONT STYLE="color: black">attached to this Transaction Report as <B>Appendix A</B></FONT><FONT STYLE="color: blue"><U>
and <B>Appendix A1</B></U></FONT><FONT STYLE="color: black">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 19.25pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 19.25pt; text-align: justify">The valuation of Kitov which
was prepared by an external valuator is enclosed to the Transaction Report as <B>Appendix C.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 19.25pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">10.3.</TD><TD STYLE="text-align: justify">Execution of the Purchase Agreement as aforesaid and issuance of securities in respect
                                                                                     thereof is conditioned, <I>inter alia</I>, by the approval of the Company's general meeting of shareholders for executing the
                                                                                     extraordinary private placement aforesaid and any resolutions required by the Purchase Agreement as detailed above, receipt of a valuation report
of Kitov as well as receipt of the pre-ruling approval from the Israeli Tax Authority as detailed below, and this no later than
November 23, 2012 (hereinafter: &quot;<B>the Record Date</B>&quot;). For additional details regarding the prerequisites for executing
the Purchase Agreement see paragraph 14.1.2 hereunder.</TD>
</TR></TABLE>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"><FONT STYLE="color: black"><SUP>14
</SUP></FONT><FONT STYLE="color: red"><STRIKE></STRIKE></FONT><FONT STYLE="color: blue"><U>Following </U></FONT><FONT STYLE="color: black">the
planned 1:10 share consolidation, the exercise price of 61,280 Additional Warrants will be NIS 0.1</FONT> per each Additional
Warrant. It should be noted that the difference between the exercise price of the Additional Warrants and the nominal value of
the Company shares will be covered at the date of exercising the Special Warrants, should and to the extent that they will be
exercised, by transferring in the Company's financial statements the total sum of the disparity from the premium on shares clause
to the share capital clause.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; color: blue"><U><SUP>15 </SUP>It
should be noted that in the case where the Company exercise its right to convert any of the Milestone Payments to</U> <U>shares,
the Offerees shall pay the Company an amount of NIS 0.1 for each share which will be allocated to them for the Milestone
Payments.</U></P>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.6in; text-align: left"><B>11.</B></TD><TD STYLE="text-align: justify"><B><U>Details of the Offerees</U></B></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.25pt">The Offerees are Kitov shareholders and additional
service providers of Kitov. For details regarding the Offerees who will hold the status of interested parties in the Company pursuant
to the completion of the transaction object of the report see paragraph 3 of this report.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.25pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>12.</B></TD><TD STYLE="text-align: justify; text-indent: 0.35in"><B><U>The
                                                                                       terms, number and percentage the offered
                                                                                       securities will constitute of the Company's
                                                                                       share capital after the issuance</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: -16.25pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.3in; text-align: left"><FONT STYLE="color: black">12.1.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: black">In consideration for the transfer of Kitov's share capital in
                                                                                                                      full
                                                                                                                      in                                                                                                                       a
                                                                                                                      manner that Kitov will become a company fully owned (100%) by the Company, the Company will allocate to the Offerees, at
                                                                                                                      the Completion Date of the Purchase Agreement 8,</FONT><FONT STYLE="color: red"><STRIKE>709,052</STRIKE></FONT><FONT STYLE="color: blue"><U>686,733</U></FONT><FONT STYLE="color: black">
                                                                                                                      ordinary shares of NIS 0.1 par value each of the Company, at a price per share of NIS 1.</FONT><FONT STYLE="color: blue"><U>651</U></FONT><FONT STYLE="color: red"><STRIKE>641</STRIKE></FONT><FONT STYLE="color: black"><SUP>16 </SUP>(&quot;<B>the
                                                                                                                      Price Per Share in the Private Placement </B>&quot;) and also will allocate to Kitov's service providers </FONT><FONT STYLE="color: red"><STRIKE>218,728</STRIKE></FONT><FONT STYLE="color: blue"><U>241,048</U></FONT><FONT STYLE="color: black">
                                                                                                                      warrants,
                                                                                                                      unregistered, for the purchase of </FONT><FONT STYLE="color: red"><STRIKE>218,728</STRIKE></FONT><FONT STYLE="color: blue"><U>241,048</U></FONT><FONT STYLE="color: black">
                                                                                                                      Company
                                                                                                                      shares (&quot;<B>Services Providers Warrants</B>&quot;). In addition to the aforementioned securities, the Company will
                                                                                                                      allocate to Kitov shareholders and Kitov service providers 612,800 warrants for the purchase of 612,800 Company shares
                                                                                                                      (hereinafter: &quot;<B>The Additional Warrants</B>&quot;). The Additional Warrant will be exercisable against an exercise
                                                                                                                      price equivalent to NIS 0.01 for each Additional Warrant<SUP>17</SUP> (hereinafter: &quot;<B>Additional Warrants
                                                                                                                      Exercise Price</B>&quot;), at the earlier of either the passing of 18 months from the completion date or after the Company
                                                                                                                      has completed raising cumulative capital in the amount of USD 4 million (the Additional Warrants not exercised within the 5
                                                                                                                      years since their issue will expire). Alternatively, the Additional Warrants will be annulled immediately upon the Offerees
                                                                                                                      receipt of USD 160 thousands from the Company. All the aforesaid securities issued to the Offerees at the Completion Date of
                                                                                                                      the Purchase Agreement constitute approximately 3.59% of the Company's fully diluted issued and outstanding share
                                                                                                                      capital.</FONT></TD>
</TR></TABLE>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0"><FONT STYLE="color: black"><SUP>16 </SUP>It
should should be noted that the price of the share in the private placement according to this report is determined through negotiations
between the Company and the Offerees based, <I>inter alia</I>, on the share's average trading price on the Tel-Aviv Stock Exchange
during the 21 days prior to the date of approval by the Company's Board of Directors and also, in consideration of the fact that
the securities offered according to this report are &quot;restricted&quot; both by voluntary restriction and according to the
Purchase Agreement and also pursuant to provisions of paragraph 15c of the Israeli Securities Law 1968, and the Israeli Securities
Regulations (details pertaining paragraphs 15a and 15c of the Law), 2000. The price per share in the private placement according
to the Tel Aviv Stock Exchange was calculated by way of dividing the relative part in Kitov's valuation (out of a total valuation
of Kitov (approximately USD 40.</FONT><FONT STYLE="color: red"><STRIKE>2 </STRIKE></FONT><FONT STYLE="color: blue"><U>5 </U></FONT><FONT STYLE="color: black">million)
USD 36 million, which are related to future consideration upon milestone payments</FONT><FONT STYLE="color: blue"><U> (based on
a NIS-USD exchange rate of 3.83, which is the exchange rate as of October 23, 2012)</U></FONT><FONT STYLE="color: black"> were
discounted of the total valuation of Kitov according to the valuation for this calculation) according to the valuation in a total
of issued securities that are issued in the Completion Date.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0; text-align: left"><FONT STYLE="color: black"><SUP>17 </SUP>After the planned 1:10 share consolidation, the exercise
price of 61,280 Additional Warrants will be NIS 0.1 per each Additional Warrant. It should be noted that the difference between
the exercise price of the Additional Warrants and the nominal value of the Company shares will be covered at the date of exercising
the Special Warrants, should and to the extent that they will be exercised, by transferring in the Company's financial statements
the total sum of the disparity from the premium on shares clause to the share capital clause.</FONT></P>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.3in; text-align: left"><FONT STYLE="color: black">12.2.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: black">The Service Providers' Warrant
will be exercisable on any trading day starting at the date of their issuance and for a period of five (5) years</FONT><FONT STYLE="color: red"><STRIKE>,
i.e., until October 23, 2017</STRIKE></FONT><FONT STYLE="color: black"> (&quot;<B>The Latest Date for Exercising Service Providers
Warrants</B>&quot;) at an exercise price </FONT><FONT STYLE="color: red"><STRIKE>equivalent to the nominal value of a Company
share </STRIKE></FONT><FONT STYLE="color: blue"><U>of NIS 0.01 per warrant<SUP>18 </SUP></U></FONT><FONT STYLE="color: black">(&quot;<B>Exercise
Price of Service Providers Warrants</B>&quot;).</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 44.6pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.3in; text-align: left">12.3.</TD><TD STYLE="text-align: justify">A Service Providers Warrant or and Additional Warrant
not exercised until the expiry of latest exercising date will be annulled and will not provide the Offerees any right or claim
whatsoever.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 44.6pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.3in; text-align: left">12.4.</TD><TD STYLE="text-align: justify">The shares and also the shares deriving from the exercise
of the Service Providers Warrants or from the exercise of the Additional Warrants (hereinafter jointly: &quot;The Warrants&quot;
and &quot;The Exercise Shares&quot;) will provide the right to receive invitations, to participate and vote at Company meetings.
All Company shares, including the aforesaid Exercise Shares, have equal rights between them with regard to the capital amounts
paid or credited as paid on their nominal value, with any regard to dividend, and any other distribution and to the participation
in distribution of excess Company assets at winding-up.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 44.6pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.3in; text-align: left">12.5.</TD><TD STYLE="text-align: justify">The Shares and also the Exercise Shares will be listed
in the Company's name on those lists through which the Company shares will be listed at that time.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 44.6pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.3in; text-align: left">12.6.</TD><TD STYLE="text-align: justify">Pursuant&#9;to the Regulations of the Tel-Aviv stock
Exchange due to the transition to clearing on day T+1 for convertible unregistered shares and securities, the conversion of warrants
will not be executed on the record date for distribution of the bonus shares, placement by means of rights, distribution of dividend,
consolidation of capital, splitting of capital or reduction of capital (each of the above mentions referenced hereinafter as:
&quot;<B>Company Event</B>&quot;). Additionally, if the X day of a Company Event occurs prior to the record date of the Company
Event, then no conversion will be executed on the X day as aforesaid.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 44.6pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.3in; text-align: left"><FONT STYLE="color: black">12.7.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: black">Pursuant to the issuance of
securities to the Offerees in accordance with the aforesaid in this report, the exercise price and number of warrants not yet
exercised </FONT><FONT STYLE="color: blue"><U>only </U></FONT><FONT STYLE="color: black">will be adjusted in the instances detailed
hereunder:</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 44.6pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.55in"></TD><TD STYLE="width: 0.6in; text-align: left">12.7.1.</TD><TD STYLE="text-align: justify"><B><U>Distribution of bonus shares</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 44.6pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 82.85pt; text-align: justify">Should the Company distribute
bonus shares from the date of this allocation report until the end of the exercise period of the warrants the rights of the holders
of warrants from the relevant series will be preserved in the manner detailed below:&nbsp;</P>




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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: blue"><U><SUP>18 </SUP></U></FONT><FONT STYLE="color: red"><STRIKE></STRIKE></FONT><FONT STYLE="color: blue"><U>Following
the planned 1:10 share consolidation, the exercise price of Service Providers Warrants will be NIS 0.1 per each Warrant. It should
be noted that the difference between the exercise price of the Service Provider Warrants and the nominal value of the Company
shares will be covered at the date of exercising the Service Providers Warrants, should and to the extent that they will be exercised,
by transferring in the Company's financial statements the total sum of the difference from the premium on shares clause to the
share capital clause.</U></FONT></P>



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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 76.35pt; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0">
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1.15in"></TD><TD STYLE="text-align: left; width: 0.25in">a.</TD><TD STYLE="text-align: justify">Immediately after the record date for determining the
right to participate in the said distribution the number of exercise shares to which the holder of the warrants will be entitled
to upon their exercise will grow, by means of adding the number of shares that the said holder was entitled to then as bonus shares,
should he have exercised the said warrants
immediately prior to the aforesaid record date.</TD>
</TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 76.35pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1.15in"></TD><TD STYLE="width: 0.25in; text-align: left">b.</TD><TD STYLE="text-align: justify">According to the aforementioned, holder of a warrant
will not have the right to partial allocation of the bonus shares, however all the fractional bonus shares that will be formed
at the time of the allocation and will accumulate to complete shares will be sold on TASE, through a trustee appointed for this
purpose by the Company, within thirty (30) days from the date for the aforesaid allocation, and the net consideration (after deduction
of the sale expenses and compulsory payment of levies), will be distributed between those entitled to them within fifteen (15)
days from the date of sale. No single check for an amount less than NIS 50 will be sent to an entitled person, whereas such sums
will be available for collection at the Company offices on regular working days and during regular working hours. An entitled
person, as aforesaid who did not arrive at the Company offices to receive this sum as mentioned within twelve (12) months from
the date of sale, will forfeit his entitlement to the sum.</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1.15in"></TD><TD STYLE="width: 0.25in; text-align: left">c.</TD><TD STYLE="text-align: justify">Subject to the Regulations and Provisions of the Stock
Exchange the method of adjustment detailed above is not subject to change.</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.4in; text-align: left">12.7.2.</TD><TD STYLE="text-align: justify"><B><U>Rights Issuance</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63.75pt; text-align: justify">Should the Company offer its
shareholders securities of any kind whatsoever by way of an issuance of rights, from the date of this allocation report and until
the end of the Warrants Exercise Period, the number of exercise shares for exercising the warrants from the relevant series, that
have not yet been exercised into the Company&rsquo;s regular shares at the date set for entitlement to the rights offered at the
rights issue, will be adjusted in accordance with the bonus component of the rights as expressed in the ratio between the share
value on the stock exchange on the said record date to the base &quot;ex rights&quot; price. Subject to the Israeli Regulations
and Provisions of the stock exchange, the adjustment method detailed above is not subject to change.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63.75pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.4in; text-align: left">12.7.3.</TD><TD STYLE="text-align: justify"><B><U>Distribution of Dividend</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63.75pt; text-align: justify">Should the Company distribute
dividend in accordance with its definition in the Israeli Companies Law (&quot;<B>The Distribution</B>&quot;), for which the record
date stipulating the right of distribution will occur prior to the end of the Warrants Exercise Period, starting on the first trading
day the Company shares will be traded on after the record date for distribution, the exercise price of the aforesaid warrants will
be adjusted by multiplying it with the ratio between the Company share price on the stock exchange, adjusted to the distribution
of dividend, as will be determined by the stock exchange (&quot;Ex-Dividend Rate&quot;) and the closing price determined by the
stock exchange for Company shares on the aforesaid record date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63.75pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63.75pt; text-align: justify"></P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.3in; text-align: left">12.8.</TD><TD STYLE="text-align: justify">Pursuant to the completion of the Purchase Agreement
and subject to the fulfillment of the milestones contingent to the progress of development of Kitov drugs, as stipulated in the
Purchase Agreement, the Company will pay the Offerees the Milestone Payment. The Company has the sole discretion at any time to
convert any of its milestone payments, by means of an allocation of 91,828,110 shares of the Company (assuming that all the milestone
has been fulfilled), that will constitute approximately 25.70% of the Company (fully diluted) issued and outstanding share capital
immediately upon completion of the Purchase Agreement and all of these at the Company's sole discretion as detailed in the table
below<SUP>19</SUP>:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify; text-indent: -25.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0"><FONT STYLE="color: black"><SUP>19
</SUP>Terms that are not defined in this table will have their meaning recorded alongside them in the Kitov description attached
as <B><U>Appendix A</U></B> to this transaction report.</FONT><FONT STYLE="color: blue"><U> It should be noted that in the case
where the Company exercise its right to convert any of the Milestone Payments to shares, the Offerees shall pay the Company an
amount of NIS 0.1 for each share which will be allocated to them for the Milestone Payments. </U></FONT></P>

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

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

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="border: black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: center">&nbsp;</TD>
    <TD STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">Upon the fulfillment of milestone 2A</TD>
    <TD COLSPAN="2" STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">Upon the fulfillment of milestone 2B</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 12%; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; font-weight: bold; text-align: left">Milestone</TD>
    <TD STYLE="width: 29%; border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: left">Essence of Milestone</TD>
    <TD STYLE="width: 10%; border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: left">Payment in cash USD</TD>
    <TD STYLE="width: 10%; border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: left">Payment in shares</TD>
    <TD STYLE="width: 9%; border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: left">% of company equity</TD>
    <TD STYLE="width: 10%; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: left"><FONT STYLE="color: black"><B>% of company equity</B> (fully diluted) </FONT></TD>
    <TD STYLE="width: 10%; border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: left">% of company equity</TD>
    <TD STYLE="width: 10%; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: left"><FONT STYLE="color: black"><B>% of company equity</B> (fully diluted) </FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; text-align: left">Milestone 1</TD>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: left"><FONT STYLE="color: black">Receipt
    of the FDA approval for an SPA for KIT-302. The Company, NewCo or Kitov will submit an SPA as an amendment to the IND of KIT-302
    within 90 days from the Completion Date. </FONT><FONT STYLE="color: blue"><U>If such approval will be received after the 90
    days said, the parties will continue in development according to the milestones and the Company shall not be required to pay
    the said milestone. </U></FONT></TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">4,924,500</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">&nbsp;10,733,156</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">3.25%</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">3.00%</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">&nbsp;3.33%</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">&nbsp;3.07%</TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">Milestone 1A</TD>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">Upon
    Successful completion by the Company or Kitov of the phase III clinical trial that will meet the results set in the trial
    protocol approved by the FDA, as a result of which the company will be able to publish an updating press release stating&nbsp;
    that the Phase III clinical trials has been successfully completed.. Regardless of the aforementioned, the Company and Kitov
    have agreed that a successful completion of Phase III clinical trial will prevail also should the trial results support an
    NDA with regard to all the dosing strengths of the antihypertensive component in the drug. Additionally, is was decided that
    should the Company choose to start <FONT STYLE="color: black">development of the KIT-301 drug instead of KIT-302, all the
    aforesaid conditions pertaining to KIT-302 will prevail </FONT><FONT STYLE="color: blue"><U>only</U> </FONT><FONT STYLE="color: black">on
    KIT-301 respectively.</FONT></TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">6,567,000</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">14,310,874</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">4.34%</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">4.01%</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">&nbsp;4.43%</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">4.09%</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: black 1pt solid; border-top: Black 1pt solid; width: 12%">Milestone 1B</TD>
    <TD STYLE="vertical-align: top; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-top: Black 1pt solid; width: 29%">Upon the passing of six (6) months from the date of submitting the NDA to FDA with regard to KIT-302 or KIT-301, and without additional studies having been required by the FDA.</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-top: Black 1pt solid; width: 10%; text-align: right">3,283,000</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-top: Black 1pt solid; width: 10%; text-align: right">7,155,437</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; border-top: Black 1pt solid; width: 9%">2.17%</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; border-top: Black 1pt solid; width: 10%">2.00%</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; border-top: Black 1pt solid; width: 10%">&nbsp;2.22%</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; border-top: Black 1pt solid; width: 10%">2.04%</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Milestone 2A*</TD>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid"><FONT STYLE="color: black">Upon
    the successful completion of the partnership/marketing transaction of </FONT><FONT STYLE="color: blue"><U>only</U> </FONT><FONT STYLE="color: black">KIT-301
    or KIT-302 with either: (1) A transaction of more than $30 million down payment plus not less than 12% royalties or; (2) A
    transaction of more than $25 million down payment plus not less than 15% royalties or royalties of not less than 20% with
    a big pharma company. 20 . It should be noted that if the forgoing transactions are completed with multiple entities, the
    sum total of the largest five (5) transactions will be used to determine if this milestone has been reached. </FONT></TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">23,293,033</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">26,236,603</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">7.95%</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">7.34%</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">&mdash;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Milestone 2B*</TD>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid"><FONT STYLE="color: black">Upon the successful completion of the partnership/marketing transaction of KIT-301 or KIT-302 <B>with more than $15 million </B>down payment plus not less than 10% royalties. It should be noted that if the forgoing transactions are completed with multiple entities, the sum total of the five (5) largest transactions will be used to determine if this milestone has been reached. </FONT></TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">13,338,958</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">19,081,166</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">5.91%</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">5.45%</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Milestone 3</TD>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid">Upon the successful regulatory approval from the FDA for marketing KIT-301 or KIT-302 in the US.</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">15,982,294</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">21,466,312</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">6.51%</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">6.01%</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">&nbsp;6.65%</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">6.13%</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><SUP>20 </SUP>For the purpose of milestones,
a large pharmaceutical company is a company with market value of over USD 2 billion.</P>

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

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

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<TR>
    <TD STYLE="vertical-align: top; width: 12%; border: black 1pt solid">Milestone 4A</TD>
    <TD STYLE="vertical-align: top; width: 29%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid"><FONT STYLE="color: black">Upon
    the approval of Kitov's patents affording protection in relation to the marketing or sales of KIT-302 or KIT301.</FONT><FONT STYLE="color: blue">
    <U>For additional details regarding Kitov's patents, see section 9 to the Outline.</U> </FONT></TD>
    <TD STYLE="width: 10%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">4,000,000</TD>
    <TD STYLE="width: 10%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">&nbsp;7,155,437</TD>
    <TD STYLE="width: 9%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">2.17%</TD>
    <TD STYLE="width: 10%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">2.00%</TD>
    <TD STYLE="width: 10%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">&nbsp;2.22%</TD>
    <TD STYLE="width: 10%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">&nbsp;2.04%</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Milestone 4B</TD>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid"><FONT STYLE="color: black">Upon
    approval of an exclusive marketing period of KIT-301 or KIT-302 for a period of at least 5 years on average for </FONT><FONT STYLE="color: blue"><U>all
    </U></FONT><FONT STYLE="color: black">the territories Germany, France and the UK. </FONT></TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">2,666,666</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">4,770,291</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">1.45%</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">1.34%</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">&nbsp;1.48%</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">1.36%</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; font-weight: bold">Total upon fulfillment of milestone 2A</TD>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold; text-align: right">60,716,492</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold; text-align: right">91,828,110</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">27.84%</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">25.70%</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">&mdash;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; font-weight: bold">Total upon fulfillment of milestone 2B</TD>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold; text-align: right">50,762,418</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold; text-align: right">84,672,673</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">26.24%</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: right">24.18%</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">* Milestone 2A and 2B are alternate, and the fulfillment of
one of these milestones cancels the possibility that the other of the two milestones will be fulfilled. It should be noted that
is is possible that any of these milestones will be fulfilled. <FONT STYLE="color: blue"><U>It should be noted that if any of
the milestones was not fulfilled, the parties will continue to act in accordance with the abovementioned and the Company will
not be liable for payment in respect of the said milestone. It should be noted that the number of shares that will be issued in
accordance with the Milestone Payments set forth above, will be adjusted in case of division or consolidation of its share capital
or in case the Company distributes bonus shares to its shareholders by reducing the shares proportionately in case of division
and consolidation, or by adding the number of shares the Offerees will be entitled as bonus shares if the Company was exercising
its right to pay the Milestone Payments by way of issuing its shares.</U></FONT></P>

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

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

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>13.</B></TD><TD STYLE="text-align: justify"><B><U>The economic value of the offered securities</U></B></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">The economic value of each warrant
of the Additional Warrants is NIS 1.287. The above mentioned economic value was calculated according to the Black&ndash;Scholes
model, in accordance with the calculation formula of the Tel Aviv Stock Exchange guidelines and in consideration that the closing
price of the Company's ordinary shares on the stock exchange on October 23, 2012, was NIS 1.296 while the weekly standard deviation
was 10.47% (constituting an annual standard deviation of 75.50%) and a 2% annual capitalization rate for the warrants, and also
assuming that the Additional Warrants will be exercised on the last date of exercise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">The economic value of each Service
Providers Warrant is NIS 1.287. The above mentioned economic value was calculated according to the Black &ndash; Scholes model,
in accordance with the calculation formula of the stock exchange guidelines and in consideration that the closing rate of the Company's
ordinary shares on the stock exchange on October 23, 2012, was NIS 1.296 while the weekly standard deviation was 10.47% (constituting
an annual standard deviation of 75.50%) and a 2% annual capitalization rate for the warrants, and also assuming that the Additional
Warrants will be exercised on the last date of exercise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>14.</B></TD><TD STYLE="text-align: justify"><B><U>The overall transaction within which the Private
Placement is executed</U></B></TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">14.1.</TD><TD STYLE="text-align: justify"><B><U>Purchase Agreement</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">14.1.1.</TD><TD STYLE="text-align: justify">On September 9, 2012 the Company engaged in a Purchase
Transaction with Kitov according to which the designated company NewCo will be merged through a reverse triangular merger following
which NewCo will cease to exist. As a result of completing the merger Kitov will become a private company wholly owned by the
Company and the Offerees will receive the merger consideration in shares and warrants for Company shares and also various milestone
payments throughout the development process of Kitov products, in cash, or in Company shares and all by means of an issuance of
securities of the Company by an extraordinary private placement pursuant to the Israeli Securities Regulations (Private Offering
of Securities in a Listed Company, 2000) (hereinafter: &quot;<B>The Regulations</B>&quot;).</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 82.85pt; text-align: justify; text-indent: -38.25pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><FONT STYLE="font-size: 10pt; color: black">Pursuant to the
completion of the first stage of the Purchase Agreement (namely, the first payment executed on the date of completion of the Purchase
Agreement without the milestone payment hereinafter: &quot;<B>The Closing Date</B>&quot;) as aforesaid, Kitov shareholders will
hold 8,</FONT><FONT STYLE="color: red"><STRIKE>709,052</STRIKE></FONT><FONT STYLE="color: blue"><U>686,733</U> </FONT>shares of
the Company which constitute approximately<FONT STYLE="color: blue"> 3.</FONT><FONT STYLE="color: red"><STRIKE>66</STRIKE></FONT><FONT STYLE="color: blue"><U>65</U>%
</FONT>of the Company's issued and outstanding share capital and<FONT STYLE="color: blue"> </FONT><FONT STYLE="color: red"><STRIKE>597,786</STRIKE></FONT><FONT STYLE="color: blue"><U>596,204</U></FONT>
<FONT STYLE="font-size: 10pt">Additional Warrants (as defined above) and additional service providers will hold<FONT STYLE="color: blue">
</FONT><FONT STYLE="color: red"><STRIKE>218,728</STRIKE></FONT><FONT STYLE="color: blue"><U>241,048</U></FONT></FONT> <FONT STYLE="font-size: 10pt">Service
Providers Warrants (as defined above) converted to Company shares and also<FONT STYLE="color: blue"> </FONT><FONT STYLE="color: red"><STRIKE>15,014</STRIKE></FONT><FONT STYLE="color: blue"><U>16,546</U></FONT></FONT>
<FONT STYLE="font-size: 10pt">Additional Warrants. The amount of securities issued to the Offerees at the Closing Date <FONT STYLE="color: black">constitutes
3.59% of the Company's fully diluted issued and outstanding share capital.</FONT></FONT></P>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.1in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.1in; text-align: justify"><FONT STYLE="color: black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><FONT STYLE="color: black">Assuming
that all of the various milestones throughout the development process of Kitov products will be fulfilled, the Company will pay
Kitov an cumulative sum of up to USD 60,716,492 or alternatively, at the Company's sole discretion, in 30 days from the date of
the fulfillment of a milestone, issue ensuing the aforesaid payment 91,828,110 ordinary shares of NIS 0.1 par value each of the
Company which at the date of this report and after their allocation constitute 27.84% of the Company's issued and outstanding
share capital and approximately 25.70% on a fully diluted basis, (or approximately 30.</FONT><FONT STYLE="color: red"><STRIKE>48</STRIKE></FONT><FONT STYLE="color: blue"><U>47</U></FONT><FONT STYLE="color: black">%
of the Company's issued and outstanding share capital</FONT><FONT STYLE="color: blue"><U><SUP>21</SUP></U></FONT><FONT STYLE="color: black">
and approximately 28.37% of the Company's fully diluted issued and outstanding share capital, including the securities issued
at the Closing Date). For details regarding the milestones see paragraph 12.8 above.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 82.85pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">14.1.2.</TD><TD STYLE="text-align: justify"><B>Prerequisites</B> &ndash; The purchase agreement stipulates
that its execution is conditioned, inter alia, by the fulfillment of the prerequisites detailed hereunder:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 82.85pt; text-align: justify; text-indent: -38.25pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in; text-align: left">a.</TD><TD STYLE="text-align: justify">Publication of an extraordinary private placement report
with regard to the issuance of securities issued on the date of completion of the agreement and the shares that may be issued,
at the Company's discretion, subject to fulfilling the milestones defined in the Purchase Agreement;</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in; text-align: left">b.</TD><TD STYLE="text-align: justify">Approve the Purchase Agreement by the general meeting
of the Company and the resolutions in respect thereof including approval to consolidate the Company's capital at a ratio of 10:1,
the appointment of Messers Dr. Paul Waymack and Mr. Simcha Rock as directors in the Company and also approval of the Company&rsquo;s
engagement in a service agreement with Dr. Paul Waymack with regard to his position as Chairman of the Company's Board of Directors
and as an executive in charge of the clinical and regulatory development of all the Company's products in return for a monthly
management fee of USD 9,166 plus VAT, as applicable;</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in; text-align: left">c.</TD><TD STYLE="text-align: justify">Pre-Ruling approval from the Israeli Tax Authority in
accordance with paragraph 104h of the Israeli Income Tax Ordinance that the sale of Kitov shares and the issuance of the Company's
securities to holders of Kitov securities will not constitute a tax event on the day of completion of the transaction;</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in; text-align: left">d.</TD><TD STYLE="text-align: justify">Receipt of a valuation from an independent third-party
that will support the consideration determined in the aforesaid agreement and which will determine Kitov's value which will not
drop from USD 40 million;</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in; text-align: left">e.</TD><TD STYLE="text-align: justify">TASE approval to list the issued shares to the Oferees;</TD>
</TR></TABLE>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: blue"><U><SUP>21 </SUP>It should
be noted that in the case where the Company exercise its right to convert any of the Milestone Payments to shares, the Offerees
shall pay the Company an amount of NIS 0.1 for each share which will be allocated to them for the Milestone Payments.</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: blue"></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%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 50%">&nbsp;</TD><TD STYLE="text-align: right; width: 50%"></TD></TR></TABLE></DIV>
    <!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: blue">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in; text-align: left">f.</TD><TD STYLE="text-align: justify">Any other approval required to lawfully execute the shares
exchange agreement;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 51pt; text-align: justify; text-indent: -12.75pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">14.1.3.</TD><TD STYLE="text-align: justify"><B>Undertaking to execute the development program &ndash;
</B>within the framework of the Purchase Agreement the Company undertook to execute a development program for one of the drugs
under development by Kitov. As part of the aforesaid undertaking, the Company will invest the amount of USD 1.5 million to finance
the completion of the Phase III clinical trials, the execution thereof will begin onthe latest of the following: (i) three months
after the completion of the agreement, or (ii) six months from the date of signing the Purchase Agreement, whereas the duration
of the trial as mentioned, is expected to last over a period of 18 months from its start. Should the Company not fulfill its undertaking
to execute the development program aforementioned, except for certain instances in which a substantial change for the worst had
occurred in the designated area for which the Kitov drug is targeted, the relevant restriction will expire regarding 50% of the
Company shares issued to Kitov shareholders in accordance with the Purchase Agreement and the restriction will prevail only subject
to the provisions of the law. For details regarding the relevant restrictions which the Offerees undertook according to the provisions
of the Purchase Agreement see paragraph 21 below. To remove any doubt it is hereby clarified that in accordance with Kitov's estimates
as presented in the Purchase Agreement, an overall investment of USD 9 million will be required to complete the development of
Kitov drugs and up to the receipt of the approval to market it.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38.25pt; text-align: justify; text-indent: -38.25pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">14.1.4.</TD><TD STYLE="text-align: justify"><B>Representations -</B> Within the framework of the
Purchase Agreement the Company received from Kitov representations regarding its activities and, <I>inter alia</I>, with regard
to its incorporation, shareholders, lack of rights of third parties in Kitov shares, financial statements, financial liabilities,
legal proceeds, officers, employees and consultants, liens, guarantees, insurance, intellectual property, licenses and permits
and also a declaration that it is authorized and entitled to enter the transaction. Additionally, within the framework of the
Purchase Agreement the Company submitted notices with regard to it being a public company, publication of its periodical report
for 2011, absence of any event influentially material to the results of the Company's activities, legal proceedings, receipt of
all the approvals required to execute the merger, absence of contradiction between the provisions of the Purchase Agreement and
Agreements to which the Company is party, etc.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38.25pt; text-align: justify; text-indent: -38.25pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">14.1.5.</TD><TD STYLE="text-align: justify"><B>Indemnification -</B> The parties to the Purchase
Agreement have mutually undertaken that the representations submitted within the framework of the Purchase Agreement or any other
agreement, including certificate, document or agreement attached to the Purchase Agreement by any of the parties will be correct
and exact as at the date of completion of the Purchase Agreement.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38.25pt; text-align: justify; text-indent: -38.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38.25pt; text-align: justify; text-indent: -38.25pt"></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%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 50%">&nbsp;</TD><TD STYLE="text-align: right; width: 50%"></TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38.25pt; text-align: justify; text-indent: -38.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Starting at the Closing Date
and for a period of 18 months, each of Kitov shareholders, relative to his holdings of Kitov shares undertakes, to protect and
indemnify the Company, and its senior officers, directors, employees, shareholders, agents and representatives, against all damages,
losses, costs and expenses (including reasonable legal fees) which will derive from third party claims, based on a breach of the
representations included in the Purchase Agreement including documents attached therein (&quot;<B>Indemnification Claims</B>&quot;).
Regardless of the aforementioned the above undertaking to indemnify will not apply to any indemnification claim based on consequential
damage.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 38.25pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The undertaking to indemnify
Kitov shareholders will be restricted only to the number of Company securities they received until the date of the Indemnification
Claim, provided that the false representation or breach of the Purchase Agreement will not be deemed fraudulent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 82.85pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">14.1.6.</TD><TD STYLE="text-align: justify"><B>Prevention or restriction to execute actions in the
securities issued to the Offerees</B> &ndash; According to the provisions of this Purchase Agreement the Offerees have undertaken
a voluntary lockup period, for details pertaining to the restriction provisions prevailing on the Oferees see paragraph 21 to
the transaction report.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 82.85pt; text-align: justify; text-indent: -38.25pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>15.</B></TD><TD STYLE="text-align: justify"><B><U>A description of the topics on the meeting agenda</U></B></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify">The Purchase Agreement including
the extraordinary private placement thereof, as detailed above is presented for approval, to remove all doubt, <U>as a whole</U>,
together with all the engagements and resolutions required for its completion, as detailed hereunder:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">15.1.</TD><TD STYLE="text-align: justify"><B><U>Purchase Agreement</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 19.25pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 44.6pt; text-align: justify">Approve the Company's engagement
in a Purchase agreement and the extraordinary private placement thereof, which includes the Completion Shares, Additional Warrants,
Service Providers Warrants, milestone payments or alternatively issuance of shares in accordance with the milestones determined
in the Purchase Agreement, at the Company's sole discretion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 44.6pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">15.2.</TD><TD STYLE="text-align: justify"><B><U>Capital Consolidation</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 44.6pt; text-align: justify">Approve to consolidate the Company's
capital at a ratio of 10:1 in a manner that every 10 shares of NIS 0.1 par value each of the Company will be consolidated into
one share of NIS 1.0 par value each.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 44.6pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">15.3.</TD><TD STYLE="text-align: justify"><B><U>Appointment of Directors</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 44.6pt; text-align: justify"><FONT STYLE="color: black">Approve
the appointments in accordance with the Company's Articles of Association, of Messers Dr. Paul Waymack and Mr. Simcha Rock as directors
in the Company until next year's annual general meeting</FONT><FONT STYLE="color: red"><STRIKE> and approve the conditions of their
fees</STRIKE></FONT><FONT STYLE="color: black">. The vote regarding each of the directors as aforesaid will be done separately.
Declarations of candidates for appointment as directors are enclosed as Appendix B to the report.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 44.6pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">15.4.</TD><TD STYLE="text-align: justify"><B><U>Engagement in a Service Providers Agreement</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 44.6pt; text-align: justify">Approve the Company's engagement
in a service provider agreement with Dr. Paul Waymack with regard to his position as Chairman of the Company's Board of Directors
and as an executive responsible for the clinical and regulatory development of all the Company's products and this in accordance
with the principal conditions presented hereunder:</P>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.6in"></TD><TD STYLE="width: 0.25in; text-align: left">a.</TD><TD STYLE="text-align: justify"><B><U>Scope of services</U></B> &ndash; Dr. Paul Waymack
will invest 65% of his working time, at the least, in order to fulfill his position as Chairman of the Company's Board of Directors
and also as an executive responsible for the clinical and regulatory development of all the company products. Dr. Paul Waymack
will execute all the requirements of his aforesaid positions including, without limitation, participate in the Company's board
meetings and be the leading authority for all the regulatory and clinical trial procedures of the Company products.</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.6in"></TD><TD STYLE="width: 0.25in; text-align: left">b.</TD><TD STYLE="text-align: justify"><B><U>Compensation</U></B> &ndash; For Dr. Paul Waymack's
services as director, chairman of the board of directors and executive responsible for the clinical and regulatory development
of all the Company products, the Company will pay Dr. Paul Waymack a monthly management fee of USD 9,166 (&quot;<B>Basic Management
Fee</B>&quot;). The Basic Management Fees will be paid to Mr. Waymack once per quarter, except for the payment detailed in paragraph
C below it is hereby clarified that the Basic Management Fees include all the provisions for social payment lawfully required. The Basic Management Fees will be paid against receipt
of an invoice.</TD>
</TR></TABLE>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.6in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="color: black">c.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: black"><B>Annual bonus</B> &ndash;
In addition to payment of the aforesaid Basic </FONT>Management Fees, and subject to receipt of approval from the Company's Board
of Directors<FONT STYLE="color: blue"><U> each year </U></FONT><FONT STYLE="color: black">and subject to any provisions of the
law, the Company will pay Dr. Waymack an annual bonus of USD 30,000 (&quot;<B>The Annual Bonus</B>&quot;). The Annual Bonus will
be paid, if paid, until March 1, of each year and will be executed in four equal quarterly payments.</FONT></TD>
</TR></TABLE>



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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.6in"></TD><TD STYLE="width: 0.25in; text-align: left">d.</TD><TD STYLE="text-align: justify"><B><U>Taxes</U></B> &ndash; Dr. Paul Waymack will be
exclusively responsible for payment of all taxes required on the Basic Management Fee and the annual Bonus. No employer employee
relations will exist between the Company and Dr. Waymack therefore, the management fees constitute all the ancillary social expenses
including compensation, convalescence and vacation pay required by law.</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.6in"></TD><TD STYLE="width: 0.25in; text-align: left">e.</TD><TD STYLE="text-align: justify"><B><U>Reimbursed expenses </U></B>- Dr. Paul Waymack
will be entitled to be reimbursed against approved travel expenses paid by him in the course of executing his duties against presentation
of receipts and references and subject to the approval of the Board of Directors.</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.6in"></TD><TD STYLE="width: 0.25in; text-align: left">f.</TD><TD STYLE="text-align: justify"><B><U>Agreement term and termination</U></B> &ndash;
The engagement between the parties will enter into force upon signing this agreement and will be valid until the earliest of the
following: (1) Complete the development of Kitov products according to the development program; (2) Dr. Waymack will cease to
act as director in the Company's Board of Directors. Without derogating from the generality of the above mentioned, Dr. Waymack's
Service Provider's Agreement will be immediately terminated in each of the occurrences below ; (1) Dr. Waymack will not be reappointed
as director by the annual general meeting of Company shareholders; (2) Dr. Waymack will cease to fulfill his position in accordance
with the Company's Articles of Association as will be updated from time to time, or in accordance with the provisions of the Law
in Israel and Provisions of the Securities Law in the United States; (3) Dr. Waymack will be convicted for a criminal offence
except for traffic violation; (4) Dr. Waymack breached the provisions of the Service Provider Agreement and did not amend his
transgression after being required to do so or should he cease to fulfill his duties in accordance thereof and (5) Dr. Waymack
was convicted for inappropriate behavior which in the Board of Directors' opinion may prove damaging to the Company's activities.</TD>
</TR></TABLE>

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

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

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 50%">&nbsp;</TD><TD STYLE="text-align: right; width: 50%"></TD></TR></TABLE></DIV>
    <!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.85in; text-align: justify">Without derogating from the generality
of the aforementioned, Dr. Waymack will be entitled to end his engagement in the Service Provider Agreement subject to submitting,
a month in advance, written notice to that effect. It should be noted that in the event that Dr. Waymack will cease to fulfill
his position as director in the Company, for any reason whatsoever, the Company has undertaken to hire his services as an external
consultant responsible for the development of all the Company drugs, as long as these drugs are developed, at the same scope of
engagement and in</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.85in; text-align: justify">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.85in; text-align: justify; color: blue"><U>It should be
noted that as of the date of this report the Chairman of the Board receives compensation in accordance with the law only and in
2011 and for the six months ended June 30, 2012 his fees amounted to USD 14,125 and USD 8,750, respectively and subject to approval
of proposals on the agenda, the current Chairman of the Board will serve only as a director. </U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 67.65pt; text-align: justify; color: blue">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.85in; text-align: justify; color: blue"><U>Below is a
table showing the breakdown of the compensation that Dr. Paul Waymack will be entitled as an executive responsible for the clinical
and regulatory development of all the company products (in USD):</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 67.65pt; text-align: justify; color: blue">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="4" STYLE="border: windowtext 1pt solid; color: blue; font-weight: bold; text-decoration: underline; text-align: center">Details of who receives<BR>
compensation</TD>
    <TD COLSPAN="7" STYLE="border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; color: blue; font-weight: bold; text-decoration: underline; text-align: center">Compensation for services</TD>
    <TD COLSPAN="3" STYLE="border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; color: blue; font-weight: bold; text-decoration: underline; text-align: center">Other<BR>
compensation</TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; color: blue; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">Name</TD>
    <TD STYLE="width: 6%; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">Position</TD>
    <TD STYLE="width: 5%; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">Scale of position</TD>
    <TD STYLE="width: 7%; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">Holding percentage in corporate capital</TD>
    <TD STYLE="width: 5%; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">Monthly Salary</TD>
    <TD STYLE="width: 5%; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">Grant</TD>
    <TD STYLE="width: 6%; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">Share- based payment</TD>
    <TD STYLE="width: 8%; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">Management fees</TD>
    <TD STYLE="width: 7%; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">Consulting fees</TD>
    <TD STYLE="width: 8%; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">Commission</TD>
    <TD STYLE="width: 4%; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">Other</TD>
    <TD STYLE="width: 5%; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">Interest</TD>
    <TD STYLE="width: 4%; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">Rent</TD>
    <TD STYLE="width: 4%; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">Other</TD>
    <TD STYLE="width: 19%; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">Total maximal annual compensation</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">Dr. Paul Waymack</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">Executive</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">65%</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">&mdash;</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">9,166</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">Up to 30,000</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">&mdash;</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">&mdash;</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">&mdash;</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">&mdash;</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">&mdash;</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">&mdash;</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">&mdash;</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">&mdash;</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; color: blue; text-decoration: underline; text-align: justify">139,992</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: justify; color: blue">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>It is hereby clarified that all the
resolutions on the meeting's agenda are interconnected resolutions, namely that the rejection of one of the resolutions may be
deemed as a rejection of the other resolutions even though another resolution has been accepted and approved by the extraordinary
general meeting of the Company&rsquo;s shareholders.</B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>16.</B></TD><TD STYLE="text-align: justify; text-indent: 0.5in"><B><U>The Company's issued share capital, the number
and rate of the Offerees and public holdings in the Company's share capital</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -16.25pt">&nbsp;</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; color: blue"><U><SUP>22 </SUP>It should
be noted that after the closing date Dr. Paul Waymack will hold, through JPW PCH LLC, a company controlled by him which was incorporated
in the U.S., approximately 2.99% of the Company's issued and outstanding shares.</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: blue"></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%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 50%">&nbsp;</TD><TD STYLE="text-align: right; width: 50%"></TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: blue">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">16.1.</TD><TD STYLE="text-align: justify">The registered share capital of the Company as at
the date of this immediate report is NIS 70 million, divided into 700,000,000 ordinary shares of NIS 0.1 par value each.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">16.2.</TD><TD STYLE="text-align: justify">The issued and outstanding share capital of the Company
as at the date of this immediate report is NIS 22.9 million, divided into 229,362,160 ordinary shares of NIS 0.1 par value each.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">16.3.</TD><TD STYLE="text-align: justify">Below is a table that presents the issued and outstanding
share capital of the Company, the number and percentage holdings of the Offerees and interested parties in the Company, and the
total holdings of other shareholders in the issued and outstanding share capital and voting rights in the Company before and after
the allocation that will be executed on the Closing Date (first stage issuance):</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></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%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 50%">&nbsp;</TD><TD STYLE="text-align: right; width: 50%"></TD></TR></TABLE></DIV>
    <!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="border: windowtext 1pt solid; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="5" STYLE="border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font-weight: bold">Before the private placement object of this allocation</TD>
    <TD COLSPAN="5" STYLE="border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font-weight: bold">After the private placement object of this allocation</TD></TR>
<TR STYLE="vertical-align: top">
    <TD ROWSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; font-weight: bold">Name</TD>
    <TD ROWSPAN="2" STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.7pt"><B>Nr. of shares</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.7pt"><B>&nbsp;</B></P></TD>
    <TD ROWSPAN="2" STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold">Unregistered warrants&nbsp;</TD>
    <TD ROWSPAN="2" STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold">Warrants (series 2)</TD>
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold">Before the substantial private placement according to this report.</TD>
    <TD ROWSPAN="2" STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.7pt"><B>Nr. of shares</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD>
    <TD ROWSPAN="2" STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold">Unregistered warrants</TD>
    <TD ROWSPAN="2" STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold">Warrants (series 2)</TD>
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold">Immediately after the substantial private placement according to this report (at the date of completion)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>% in equity and voting</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>% in equity and voting (fully diluted)</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><SUP>23</SUP></B></P></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>% in equity and voting </B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold"><B>% in equity and voting (fully diluted)<SUP>24</SUP></B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid">Alexander Rabinovitch<SUP>25</SUP></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; text-align: right">43,132,361</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; text-align: right">573,750&nbsp;</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; text-align: right">18.81%</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; text-align: right">17.08%</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; text-align: right">43,132,361</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; text-align: right">573,750&nbsp;</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; text-align: right">18.12%</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; text-align: right">16.46%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid">David Bassa</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">21,705,987</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">9.46%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">8.48%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">21,705,987</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">9.12%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">8.17%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Shalom Manova</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">17,175,573</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">7.49%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">6.71%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">17,175,573</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">7.21%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">6.47%</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid">Ben-Zion Weiner <SUP>26</SUP></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">570,434</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">4,408,000</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">0.25%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">1.95%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">570,434</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">4,408,000</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">0.24%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">1.87%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid">David Grossman <SUP>27</SUP></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">3,110,000</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">1.21%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">3,110,000</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">1.17%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid">Amit Yonay <SUP>28</SUP></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">150,000</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">0.06%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">150,000</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">0.06%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid">Marc Allouche <SUP>29</SUP>2</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">150,000</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">0.06%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">150,000</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">0.06%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid">Ronen Twito <SUP>30</SUP></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">3,110,000</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">1.21%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">3,110,000</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">1.17%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid">Dafna Cohen<SUP> 31</SUP></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">150,000</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">0.06%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">150,000</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">0.06%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid">Jaron Diament <SUP>32</SUP></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">150,000</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">0.06%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">150,000</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">0.06%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid">Moshe Mittelman <SUP>33</SUP></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">5,590,896</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">640,000</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">2.44%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">2.43%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">5,590,896</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">640,000</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">2.35%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">2.35%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; font-weight: bold">Total interested parties and officers</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">88,175,251</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">11,868,000</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">573,750&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">38.45%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">39.31%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">88,175,251</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">11,868,000</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">573,750&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">37.04%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">37.90%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: black 1pt solid">The public <SUP>34</SUP></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; text-align: right">137,394,001</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; text-align: right">2,246,727</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font-weight: bold; text-align: right">11,839,164&nbsp;</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font-weight: bold; text-align: right">59.90%</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font-weight: bold; text-align: right">59.18%</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; text-align: right">137,394,001</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; text-align: right">2,246,727</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font-weight: bold; text-align: right">11,839,164&nbsp;</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; text-align: right">57.<FONT STYLE="color: red"><B><STRIKE>71</STRIKE></B></FONT><B><FONT STYLE="color: blue"><U>72</U></FONT>%</B></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; text-align: right">57.06%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1pt solid; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold">Total</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">225,569,252</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">14,114,727</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">12,412,914&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">98.35%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">98.49%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">225,569,252</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">14,114,727</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">12,412,914&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">94.<FONT STYLE="color: red"><B><STRIKE>75</STRIKE></B></FONT><B><FONT STYLE="color: blue"><U>76</U></FONT>%</B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">94.96%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1pt solid; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold">Offerees</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-left: black 1pt solid; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid">JPW PCH LLC <SUP>35</SUP></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">7,119,907</TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">488,708</TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">2.99%</TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">2.86%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1pt solid; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid">Moshe Lester</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&mdash;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">1,<FONT STYLE="color: red"><STRIKE>589,145</STRIKE></FONT><FONT STYLE="color: blue"><U>566,826</U></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right"><FONT STYLE="color: red"><STRIKE>109,078</STRIKE></FONT><FONT STYLE="color: blue"><U>107,546</U></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">0.<FONT STYLE="color: red"><STRIKE>67</STRIKE></FONT><FONT STYLE="color: blue"><U>66</U></FONT>%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">0.<FONT STYLE="color: red"><STRIKE>64</STRIKE></FONT><FONT STYLE="color: blue"><U>63</U></FONT>%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1pt solid; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid">Simcha Rock</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right"><FONT STYLE="color: red"><STRIKE>23,851</STRIKE></FONT><FONT STYLE="color: blue"><U>47,703</U></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">0.<FONT STYLE="color: red"><STRIKE>01</STRIKE></FONT><FONT STYLE="color: blue"><U>02</U></FONT>%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1pt solid; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid">Clal underwriting<FONT STYLE="color: blue"><U><SUP>36</SUP></U></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">71,554</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">0.03%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1pt solid; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid">Ronen Kantor <SUP>37</SUP></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">3,792,908</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">60,000</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">1.65%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">1.51%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">3,792,908</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">174,486</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">1.59%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">1.49%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1pt solid; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid">Charity fund <SUP>38</SUP></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">23,851</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; text-align: right">0.01%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1pt solid; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold">Total Offerees</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">3,792,908</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">60,000</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">1.65%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">1.51%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right"><B>12,<FONT STYLE="color: red"><STRIKE>501,960</STRIKE></FONT><FONT STYLE="color: blue"><U>479,641</U></FONT></B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="color: red"><B><STRIKE>891,528</STRIKE></B></FONT><B><FONT STYLE="color: blue"><U>913,848</U></FONT></B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right"><B>5.<FONT STYLE="color: red"><STRIKE>25</STRIKE></FONT><FONT STYLE="color: blue"><U>24</U></FONT>%</B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">5.04%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: black 1pt solid; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold">Total</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">229,362,160</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">14,174,727</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">12,412,914&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">100%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">100%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right"><B>238,<FONT STYLE="color: red"><STRIKE>071,212</STRIKE></FONT><FONT STYLE="color: blue"><U>048,641</U></FONT></B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right"><B>15,<FONT STYLE="color: red"><STRIKE>006,255</STRIKE></FONT><FONT STYLE="color: blue"><U>028,575</U></FONT></B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">12,412,914&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">100%</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; font-weight: bold; text-align: right">100%</TD></TR>
</TABLE>


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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>23 </SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">Assuming
that all warrants (series 2), and unregistered options of the Company, are exercised into Ordinary shares of the Company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT><SUP>24</SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">
Assuming that all warrants (series 2), and unregistered options of the Company, including warrants given to Offerees, are exercised
into Ordinary shares of the Company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>25 </SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">23,574,902
Ordinary shares of the Company and warrants (series 2) are held by Green Forest Holdings Ltd. a company that, to the best of the
Company's knowledge, is jointly and equally owned by Mr. and Mrs. Alexander and Sagit Rabinovitch.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 371.85pt 0pt 0"><SUP>26 </SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">Director</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 371.85pt 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT><SUP>27 </SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">Director and CEO.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 371.85pt 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT><SUP>28 </SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">Chairman
of the Company's Board. </FONT></P>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0"><SUP>29</SUP> <FONT STYLE="font-family: Times New Roman, Times, Serif">Director</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT><SUP>30 </SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">Deputy CEO and CFO</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT><SUP>31 </SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">External
director </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT><SUP>32 </SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">External
director </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT><SUP>33 </SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">Medical
Director </FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0"><SUP>34</SUP> <FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
public - as defined in the TASE guidelines.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>35 </SUP>A Company incorporated in the United States wholly held by Messers.
Dr. </FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 9pt 0pt 0; color: blue"><U><SUP>36</SUP>To the best of the Company's
knowledge,Clal Finance Underwriting Ltd is a private company, which as of the date of this report is held by Clal Finance Ltd (approximately
10.1%), Mr. Zachi Sultan (approximately 56.2%), Messrs Ronen Weissberg, Yuval Ben-Ze'ev and Naor El-Hai (through a company they
own - approximately 24.7%, Ms Tal Rubinstein (through a company she owns - approximately 5% and Mr. Jonathan Cohen (through a
company he owns - approximately 4%).</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: black"><SUP>37 </SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">It
should be noted that Mr. Ronen Kantor holds prior to this private placement object of this report 3,792.908 ordinary shares of
NIS 0.1 par value each of the Company and 60,000 warrants exercisable into 60,000 ordinary shares of NIS 0.1 par value each. </FONT><SUP></SUP></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: black"><SUP>38 </SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">Kitov
shareholders decided to donate 0.25% of Kitov to the Pelech charity. </FONT></FONT><FONT STYLE="color: blue"><U>To the best of
the Company's knowledge, Pelech Charity was registered on May 2, 1984 (register number:</U> <U>580040418), whose aim is to establish,
maintain, manage and develop a religious experimental high school for girls, including residence and boarding school which is
managed by Mr. Michael Hochstein. </U></FONT></P>



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

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

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">16.4.</TD><TD STYLE="text-align: justify">The Company is entitled to pay the milestone payments,
to the extent that they were fulfilled, in cash, therefore, should they be fulfilled and assuming that the Company fulfilled the
conditions of milestone 2A and conditions of milestone 2B and assuming that the Company has chosen to pay all the milestone payments
in cash, the holdings of the Offerees in the Company equity will be as detailed in the table in paragraph 16.3 above and the Company
will pay the Offerees the sums detailed below:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="width: 29%; border: black 1pt solid; font-weight: bold; text-align: center">Name of Offeree</TD>
    <TD NOWRAP STYLE="width: 36%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold; text-align: center">Total amount payable in USD<BR>
(assuming the fulfillment of all milestones<BR>
and conditions of milestone 2A)</TD>
    <TD NOWRAP STYLE="width: 35%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold; text-align: center"><FONT STYLE="color: black"><B>Total amount payable in USD<BR>
(assuming the fulfillment of all milestones<BR>
and conditions of milestone 2B) </B></FONT></TD></TR>
<TR>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; text-align: center"><FONT STYLE="color: black">JPW
    PCH LLC <SUP>39</SUP> </FONT></TD>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="color: black">48,421,</FONT><FONT STYLE="color: red"><STRIKE>402</STRIKE></FONT><FONT STYLE="text-underline-style: double; color: blue"><U>403 </U></FONT></TD>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: center">40,483,029</TD></TR>
<TR>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; text-align: center">Moshe Lester</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="color: red"><STRIKE>10,807,536</STRIKE></FONT><FONT STYLE="text-underline-style: double; color: blue"><U>10,655,744 </U></FONT></TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="color: red"><STRIKE>9,035,710</STRIKE></FONT><FONT STYLE="text-underline-style: double; color: blue"><U>8,908,804 </U></FONT></TD></TR>
<TR>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; text-align: center">Simcha Rock</TD>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="color: red"><STRIKE>151,791</STRIKE></FONT><FONT STYLE="text-underline-style: double; color: blue"><U>303,582 </U></FONT></TD>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="color: red"><STRIKE>126,906</STRIKE></FONT><FONT STYLE="text-underline-style: double; color: blue"><U>253,812 </U></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; text-align: center">Clal underwriting</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: center">455,374</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: center">&nbsp;380,718</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; text-align: center">Ronen Kantor</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: center">728,598</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: center">&nbsp;609,149</TD></TR>
<TR>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; text-align: center"><FONT STYLE="color: black">Charity
    Fund<SUP>40</SUP> </FONT></TD>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: center">151,791</TD>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: center">&nbsp;126,906</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; font-weight: bold; text-align: center">Total Payment</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold; text-align: center">60,716,492</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold; text-align: center">&nbsp;50,762,418</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>39</SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">A
Company incorporated in the United States wholly held by Messers. Peter Hoyle and Dr. Paul Waymack.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT><SUP>40 </SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">Kitov
shareholders decided to donate 0.25% of Kitov to the Pelech charity. <FONT STYLE="text-underline-style: double; color: blue"><U>To
the best of the Company's knowledge, Pelech Charity was registered on May 2, 1984 (register number: 580040418), whose aim is to
establish, maintain, manage and develop a religious experimental high school for girls, including residence and boarding school
which is managed by Mr. Michael Hochstein.</U></FONT></FONT></P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.35in; text-align: left">16.5.</TD><TD STYLE="text-align: justify">The table below details the issues and outstanding
share capital of the Company the number and percentage of holdings of the Offerees, of interested parties in the Company and the
total holdings of other shareholders in the issued and outstanding capital and voting rights in the Company (after the Date of
Completion) and after executing in full the milestone allocations by means of Company securities, and assuming that the Company
has fulfilled conditions of milestone 2A and the assumption that the Company has fulfilled conditions of milestone 2B:</TD>
</TR></TABLE>

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

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="border: black 1pt solid; padding-left: 1.7pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="5" STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>After the private issuances against milestones</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(assuming that the Company fulfilled
        conditions of milestone 2A)</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P></TD>
    <TD COLSPAN="5" STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>After the private issuances against milestones</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(assuming that the Company fulfilled
        conditions of milestone 2B)</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 19%; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-left: 1.7pt; font-weight: bold; text-align: center">Name</TD>
    <TD STYLE="width: 9%; border-bottom: black 1pt solid; border-right: black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Nr. of shares</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P></TD>
    <TD STYLE="width: 9%; border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: center">Unregistered warrants&nbsp;</TD>
    <TD STYLE="width: 6%; border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: center">Warrants (series 2)</TD>
    <TD STYLE="width: 11%; border-bottom: black 1pt solid; border-right: black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>% in equity and voting</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P></TD>
    <TD STYLE="width: 7%; border-bottom: black 1pt solid; border-right: black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>% in equity and voting</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(fully diluted)</B><SUP>41</SUP></P></TD>
    <TD STYLE="width: 9%; border-bottom: black 1pt solid; border-right: black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Nr. of shares</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P></TD>
    <TD STYLE="width: 9%; border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: center">Unregistered warrants&nbsp;</TD>
    <TD STYLE="width: 6%; border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: center">Warrants (series 2)</TD>
    <TD STYLE="width: 8%; border-bottom: black 1pt solid; border-right: black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>% in equity and voting</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P></TD>
    <TD STYLE="width: 7%; border-bottom: black 1pt solid; border-right: black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>% in equity and voting</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(fully diluted)</B><SUP>42</SUP></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Alexander Rabinovitch <SUP>43</SUP></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">43,132,361</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">573,750&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">13.07%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">12.23%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">43,132,361</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">573,750&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">13.36%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">12.48%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">David Bassa</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">21,705,987</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">6.58%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">6.08%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">21,705,987</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">6.72%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">6.20%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Shalom Manova&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">17,175,573</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">5.21%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">4.81%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">17,175,573</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">5.32%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">4.91%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Ben-Zion Weiner <SUP>44</SUP></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">570,434</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">4,408,000</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.17%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">1.39%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">570,434</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">4,408,000</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.18%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">1.42%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">David Grossman <SUP>45</SUP></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">3,110,000</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.87%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">3,110,000</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.89%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Amit Yonay <SUP>46</SUP></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">150,000</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.04%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">150,000</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.04%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Marc Allouche <SUP>47</SUP></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">150,000</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.04%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">150,000</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.04%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Ronen Twito <SUP>48</SUP></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">3,110,000</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.87%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">3,110,000</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.89%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Dafna Cohen <SUP>49</SUP></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">150,000</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.04%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">150,000</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.04%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Jaron Diament <SUP>50</SUP></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">150,000</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.04%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">150,000</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.04%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Moshe Mittelman <SUP>51</SUP></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">5,590,896</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">640,000</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">1.69%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">1.74%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">5,590,896</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">640,000</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">1.73%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">1.78%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; font-weight: bold">Total interested parties and officers</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">88,175,251</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">11,868,000</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">573,750&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">26.72%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">28.15%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">88,175,251</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">11,868,000</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">573,750&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">27.31%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">28.73%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-left: 1.7pt">The public <SUP>52</SUP></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">137,394,001</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">2,246,727</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">11,839,164&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">41.<FONT STYLE="color: red"><STRIKE>65</STRIKE></FONT><FONT STYLE="color: blue"><U>66</U></FONT>%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">42.40%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">137,394,001</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">2,246,727</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">11,839,164&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">42.<FONT STYLE="color: red"><STRIKE>57</STRIKE></FONT><FONT STYLE="color: blue"><U>58</U></FONT>%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">43.26%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-left: 1.7pt; font-weight: bold">Total</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">225,569,252</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">14,114,727</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">12,412,914&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">68.<FONT STYLE="color: red"><STRIKE>37</STRIKE></FONT><FONT STYLE="color: blue"><U>38</U></FONT>%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">70.55%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">225,569,252</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">14,114,727</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">12,412,914&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">69.<FONT STYLE="color: red"><STRIKE>88</STRIKE></FONT><FONT STYLE="color: blue"><U>89</U></FONT>%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">71.99%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-left: 1.7pt; font-weight: bold">Offerees</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; padding-left: 1.7pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">JPW PCH LLC <SUP>53</SUP></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">80,352,825</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">488,708</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">24.36%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">22.63%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">74,646,364</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">488,708</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">23.13%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">21.46%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-left: 1.7pt">Moshe Lester<B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">17,<FONT STYLE="color: red"><STRIKE>934,549</STRIKE></FONT><FONT STYLE="color: blue"><U>682,659</U></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right"><FONT STYLE="color: red"><STRIKE>109,078</STRIKE></FONT><FONT STYLE="color: blue"><U>107,546</U></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">5.<FONT STYLE="color: red"><STRIKE>44</STRIKE></FONT><FONT STYLE="color: blue"><U>36</U></FONT>%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">5.<FONT STYLE="color: red"><STRIKE>05</STRIKE></FONT><FONT STYLE="color: blue"><U>98</U></FONT>%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">16,<FONT STYLE="color: red"><STRIKE>660,881</STRIKE></FONT><FONT STYLE="color: blue"><U>428,880</U></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right"><FONT STYLE="color: red"><STRIKE>109,078</STRIKE></FONT><FONT STYLE="color: blue"><U>107,546</U></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">5.<FONT STYLE="color: red"><STRIKE>16</STRIKE></FONT><FONT STYLE="color: blue"><U>09</U></FONT>%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">4.<FONT STYLE="color: red"><STRIKE>79</STRIKE></FONT><FONT STYLE="color: blue"><U>72</U></FONT>%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-left: 1.7pt">Simcha Rock</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right"><FONT STYLE="color: red"><STRIKE>229,570</STRIKE></FONT><FONT STYLE="color: blue"><U>459,141</U></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right"><FONT STYLE="color: red"><STRIKE>23,851</STRIKE></FONT><FONT STYLE="color: blue"><U>47,703</U></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.<FONT STYLE="color: red"><STRIKE>07</STRIKE></FONT><FONT STYLE="color: blue"><U>14</U></FONT>%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.<FONT STYLE="color: red"><STRIKE>07</STRIKE></FONT><FONT STYLE="color: blue"><U>14</U></FONT>%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right"><FONT STYLE="color: red"><STRIKE>211,682</STRIKE></FONT><FONT STYLE="color: blue"><U>423,363</U></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right"><FONT STYLE="color: red"><STRIKE>23,851</STRIKE></FONT><FONT STYLE="color: blue"><U>47,703</U></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.<FONT STYLE="color: red"><STRIKE>07</STRIKE></FONT><FONT STYLE="color: blue"><U>13</U></FONT>%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.<FONT STYLE="color: red"><STRIKE>07</STRIKE></FONT><FONT STYLE="color: blue"><U>14</U></FONT>%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-left: 1.7pt">Clal
    underwriting<FONT STYLE="color: blue"><U><SUP>54</SUP></U></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">688,711</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">71,554</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.21%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.21%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">635,045</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">71,554</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.20%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.20%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-left: 1.7pt">Ronen Kantor <SUP>55</SUP></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">4,894,845</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">174,486</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">1.48%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">1.42%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">4,808,980</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">174,486</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">1.49%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">1.42%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Charity Fund <SUP>56</SUP></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">229,570</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">23,851</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.07%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.07%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">211,682</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">23,851</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.07%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: right">0.07%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-left: 1.7pt; font-weight: bold">Total Offerees</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right"><B>104,<FONT STYLE="color: red"><STRIKE>330,070</STRIKE></FONT><FONT STYLE="color: blue"><U>307,751</U></FONT></B></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="color: red"><B><STRIKE>891,528</STRIKE></B></FONT><B><FONT STYLE="color: blue"><U>913,848</U></FONT></B></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right"><B>31.<FONT STYLE="color: red"><STRIKE>63</STRIKE></FONT><FONT STYLE="color: blue"><U>62</U></FONT>%</B></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">29.45%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right"><B>97,<FONT STYLE="color: red"><STRIKE>174,634</STRIKE></FONT><FONT STYLE="color: blue"><U>152,314</U></FONT></B></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="color: red"><B><STRIKE>891,528</STRIKE></B></FONT><B><FONT STYLE="color: blue"><U>913,848</U></FONT></B></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">&mdash;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right"><B>30.<FONT STYLE="color: red"><STRIKE>12</STRIKE></FONT><FONT STYLE="color: blue"><U>.11</U></FONT>%</B></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">28.01%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-left: 1.7pt; font-weight: bold">Total</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right"><B>329,<FONT STYLE="color: red"><STRIKE>899,322</STRIKE></FONT><FONT STYLE="color: blue"><U>877,003</U></FONT></B></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right"><B>15,<FONT STYLE="color: red"><STRIKE>006,255</STRIKE></FONT><FONT STYLE="color: blue"><U>028,575</U></FONT></B></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">12,412,914&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">100%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">100%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right"><B>322,<FONT STYLE="color: red"><STRIKE>743,886</STRIKE></FONT><FONT STYLE="color: blue"><U>721,566</U></FONT></B></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right"><B>15,<FONT STYLE="color: red"><STRIKE>006,255</STRIKE></FONT><FONT STYLE="color: blue"><U>028,575</U></FONT></B></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">12,412,914&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">100%</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; font-weight: bold; text-align: right">100%</TD></TR>
</TABLE>


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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>41 </SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">Assuming
that all warrants (series 2) (series B), and unregistered options of the Company, are exercised into Ordinary shares of the Company.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>42</SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">Assuming
that all warrants (series 2), and unregistered options of the Company, including warrants given to Offerees, are exercised into
Ordinary shares of the Company.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>43 </SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">23,574,902
Ordinary shares of the Company and warrants (series 2) are held by Green Forest Holdings Ltd. a company that, to the best of the
Company's knowledge, is jointly and equally owned by Mr. and Mrs. Alexander and Sagit Rabinovitch.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>44 </SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">Director</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>45</SUP>Director and CEO</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>46</SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">
Chairman of the Company's Board.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT><SUP>47</SUP> Director</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>48 </SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">Deputy
CEO and CFO.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT><SUP>49 </SUP>External director</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>50 </SUP>External director</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>51 </SUP>Medical Director</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>52 </SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">The
public - as defined in the TASE guidelines.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT><SUP>53 </SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">A Company
incorporated in the United States wholly held by Messers. Dr. Peter Hoyle and Dr. Paul Waymack.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: blue"><FONT STYLE="text-underline-style: double"><U><SUP>54
</SUP>To the best of the Company's knowledge,Clal Finance Underwriting Ltd is a private company, which as of the date of this report
is held by Clal Finance Ltd (approximately 10.1%), Mr. Zachi Sultan (approximately 56.2%), Messrs Ronen Weissberg, Yuval Ben-Ze'ev
and Naor El-Hai (through a company they own - approximately 24.7%, Ms Tal Rubinstein (through a company she owns - approximately
5% and Mr. Jonathan Cohen (through a company he owns - approximately 4%).</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: blue"><FONT STYLE="color: black"><SUP>55 </SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">It
should be noted that Mr. Ronen Kantor holds prior to this private placement object of this report 3,792.908 ordinary shares of
NIS 0.1 par value each of the Company and 60,000 warrants exercisable into 60,000 ordinary shares of NIS 0.1 par value each..
</FONT><SUP>56 </SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">Kitov shareholders decided to donate 0.25% of Kitov
to the Pelech charity. </FONT></FONT><FONT STYLE="text-underline-style: double; color: blue"><U>To the best of the Company's knowledge,
Pelech Charity was registered on May 2, 1984 (register number: 580040418), whose aim is to establish, maintain.manage and develop
a religious experimental high school for girls, including residence and boarding school which is managed by Mr. Michael Hochstein.</U></FONT></P>

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

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

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 50%">&nbsp;</TD><TD STYLE="text-align: right; width: 50%"></TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.6in; text-align: left"><B>17.</B></TD><TD STYLE="text-align: justify"><B><U>The Consideration for the offered securities
and its determination</U></B></TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.3in"></TD><TD STYLE="width: 0.3in; text-align: left"><FONT STYLE="color: black">17.1.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: black">In consideration for the
assignment of Kitov's share capital in full to NewCo in a manner that Kitov will become a company fully owned (100%) by the Company,
the Company will issue to Kitov shareholders, at the date of completion of the Purchase Agreement 8,</FONT><FONT STYLE="color: red"><STRIKE>709,052</STRIKE></FONT><FONT STYLE="text-underline-style: double; color: blue"><U>686,733
</U></FONT><FONT STYLE="color: black">ordinary shares of NIS 0.1 par value each of the Company (<B>'The Shares</B>&quot;), at
a price per share of NIS 1.</FONT><FONT STYLE="text-underline-style: double; color: blue"><U>651</U></FONT><FONT STYLE="color: red"><STRIKE>641</STRIKE></FONT><FONT STYLE="color: black"><SUP>57
</SUP>(&quot;<B>the Price Per Share in the Private Placement </B>&quot;) and also will issue to Kitov's service providers </FONT><FONT STYLE="color: red"><STRIKE>218,728</STRIKE></FONT><FONT STYLE="text-underline-style: double; color: blue"><U>241,048
</U></FONT><FONT STYLE="color: black">warrants, unregistered, for the purchase of </FONT><FONT STYLE="color: red"><STRIKE>218,728</STRIKE></FONT><FONT STYLE="text-underline-style: double; color: blue"><U>241,048
</U></FONT><FONT STYLE="color: black">Company shares (&quot;<B>Services Providers Warrants</B>&quot;). In addition to the aforementioned
securities, the Company will issue to the Offerees 612,800 additional warrants for the purchase of 612,800 Company shares (hereinafter:
&quot;<B>The Additional Warrants</B>&quot;). The securities issued by the Company at the date of completion constitute jointly
approximately 3.</FONT><FONT STYLE="color: red"><STRIKE>66</STRIKE></FONT><FONT STYLE="text-underline-style: double; color: blue"><U>65</U></FONT><FONT STYLE="color: black">%
of the Company's issued and outstanding share capital and approximately 3.59% on a fully diluted basis.</FONT></TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.3in"></TD><TD STYLE="width: 0.3in; text-align: left">17.2.</TD><TD STYLE="text-align: justify">It should be noted that the price per share in the
private placement according to this report is determined through negotiations between the Company and the Offerees based, <I>inter
alia</I>, on the share's average trading price on the Tel-Aviv Stock Exchange during the 21 days prior to the date of approval
by the Company's Board of Directors, and also, in consideration of the fact that the offered securities according to this report
are &quot;restricted&quot; both by voluntary restriction according to the Purchase Agreement and also pursuant to provisions of
paragraph 15c of the Israeli Securities Law 1968, and the Israeli Securities Regulations (details pertaining paragraphs 15a and
15c of the Law), 2000. For details regarding the restrictions in accordance with the Purchase Agreement see paragraph 21 below.</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.6in; text-align: left"><B>18.</B></TD><TD STYLE="text-align: justify"><B><U>The price of the Company shares in the extraordinary
private placement and their quoted market price on the stock exchange</U></B></TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.3in"></TD><TD STYLE="width: 0.3in; text-align: left"><FONT STYLE="color: black">18.1.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: black">It should be noted that
according to the conditions of the Purchase agreement the shares issued to the Offerees, will be issued in consideration for the
Offerees' assignment of their entire holdings and rights in Kitov which reflect a total of NIS 1.</FONT><FONT STYLE="text-underline-style: double; color: blue"><U>651</U></FONT><FONT STYLE="color: red"><STRIKE>641
</STRIKE></FONT><FONT STYLE="color: black">per share.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 44.6pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.3in"></TD><TD STYLE="width: 0.3in; text-align: left"><FONT STYLE="color: black">18.2.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: black">The average price per share
over the six months prior to the date of publication of this transaction report is approximately NIS 1.307 per share, which is
20.</FONT><FONT STYLE="color: red"><STRIKE>4</STRIKE></FONT><FONT STYLE="text-underline-style: double; color: blue"><U>8</U></FONT><FONT STYLE="color: black">%
lower than the price per share in the extraordinary private placement. The share price on the stock exchange close and prior to
the Board of Director's resolution is NIS 1.381 and the price of Company share on the day before the date of this report is NIS
1.296.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 44.6pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: justify; text-indent: 0"><SUP>57
</SUP>It should be noted that the price of the share in the private placement according to this report is determined through negotiations
between the Company and the Offerees based, <I>inter alia</I>, on the share's average trading price on the Tel-Aviv Stock Exchange
during the 21 days prior to the date of approval by the Company's Board of Directors and also, in consideration of the fact that
the securities offered according to this report are &quot;restricted&quot; both by voluntary restriction and according to the
Purchase Agreement and also pursuant to provisions of paragraph 15c of the Israeli Securities Law 1968, and the Israeli Securities
Regulations (details pertaining paragraphs 15a and 15c of the Law), 2000. The price per share in the private placement according
to the Tel Aviv Stock Exchange was calculated by way of dividing the relative part in Kitov's valuation (out of a total valuation
of Kitov (approximately USD 40.2 million) USD 36 million, which are related to future consideration upon milestone payments<FONT STYLE="text-underline-style: double; color: blue"><U>
(based on a NIS-USD exchange rate of 3.83, which is the exchange rate as of October 23, 2012)</U></FONT><FONT STYLE="color: black">
were discounted of the total valuation of Kitov according to the valuation for this calculation) according to the valuation in
a total of issued securities that are issued in the Completion Date.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></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%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 50%">&nbsp;</TD><TD STYLE="text-align: right; width: 50%"></TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.3in"></TD><TD STYLE="width: 0.3in; text-align: left"><FONT STYLE="color: black">18.3.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: black">The price per share in
the Private Placement is higher than the share price on the stock exchange on the day before the date of this report by approximately
</FONT><FONT STYLE="color: red"><STRIKE>26.6</STRIKE></FONT><FONT STYLE="text-underline-style: double; color: blue"><U>27.4</U></FONT><FONT STYLE="color: black">%.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 44.6pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.25pt; text-align: justify; text-indent: -16.25pt">19.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Names of the controlling shareholders in the Company, major shareholders, directors and/or officers in the Company with personal
interest in the private allocation and substance of their personal interest.</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.25pt; text-align: justify; text-indent: -16.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">To the best of the Company's
knowledge as at the date of this report the Company has no controlling shareholder. Additionally, to the best of the Company's
knowledge, none of the officers or interested parties in the Company has personal interest in the private issuance object of this
report.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.6in; text-align: left">20.</TD><TD STYLE="text-align: justify"><B><U>Required approvals and prerequisites</U></B>:</TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">The Purchase Agreement stipulates
that its implementation is contingent, among other things, to the fulfillment of the prerequisites detailed below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.3in"></TD><TD STYLE="width: 0.3in; text-align: left">a.</TD><TD STYLE="text-align: justify">Publication of an extraordinary private placement
report with regard to the issuance of securities that will be issued on the date of completion of the agreement and also the shares
that may be issued, at the Company's discretion, subject to fulfilling the milestones stipulated in the Purchase Agreement;</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.3in"></TD><TD STYLE="width: 0.3in; text-align: left">b.</TD><TD STYLE="text-align: justify">Approval of the Purchase Agreement by the general
meeting of the Company and the resolutions in respect thereof including approval to consolidate the Company's capital at a ratio
of 10:1, the appointment of Messers Dr. Paul Waymack and Mr. Simcha Rock as directors in the Company, the appointment of Dr. Paul
Waymack as Chairman of the Company's Board of Directors, and also approval of the Company&rsquo;s engagement in a service agreement
with Dr. Paul Waymack with regard to his position as Chairman of the Company's Board of Directors and as executive in charge of
the clinical and regulatory development of all the Company's products in return for a monthly management fee of USD 9,166 plus
VAT, as applicable;</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.3in"></TD><TD STYLE="width: 0.3in; text-align: left">c.</TD><TD STYLE="text-align: justify">The Pre-Ruling approval by the Israeli Tax Authority
in accordance with paragraph 104h of the Israeli Income Tax Ordinance that the sale of Kitov shares and the issuance of the Company's
securities to holders of Kitov securities will not constitute a tax event on the day of completion of the transaction;</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.3in"></TD><TD STYLE="width: 0.3in; text-align: left">d.</TD><TD STYLE="text-align: justify">Receipt of a valuation report from an independent
third party that will support the consideration determined in the aforesaid agreement;</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.3in"></TD><TD STYLE="width: 0.3in; text-align: left">e.</TD><TD STYLE="text-align: justify">Approval of TASE to list the issued shares to the
Offerees;</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.3in"></TD><TD STYLE="width: 0.3in; text-align: left">f.</TD><TD STYLE="text-align: justify">Any other approval required to execute the exchange
of shares according to the law;</TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.6in; text-align: justify">(hereinafter jointly: &quot;<B>the
Prerequisites </B>&quot;)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.6pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.6pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.6pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">21.</TD><TD STYLE="text-align: justify; text-indent: 0.35in"><U>Limitations or restrictions in implementing transactions
in securities issued to the Offerees</U></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.25pt; text-align: justify; text-indent: -16.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">In accordance with the provisions of the
Purchase agreement, the Offerees have undertaken a voluntary restriction<SUP>58</SUP> as detailed below:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.3in"></TD><TD STYLE="width: 0.3in; text-align: left">21.1.</TD><TD STYLE="text-align: justify">During the voluntary lock-up period applicable to
the shares of JPW PCH LLC, owner of 80% of Kitov's issued and outstanding share capital (hereinafter: &quot;<B>JPW</B>&quot;),
prior to the Purchase Agreement:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.5pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">a.</TD><TD STYLE="text-align: justify"><B>The first restricted shares</B> &ndash; Holders
of JPW will be prevented from selling the said shares for a period of 15 months from the Closing Date and followed by a 9 months
period in which each month these shareholders may sell 1% of the Company shares they own, and after the passing of 24 months from
the Closing Date these aforesaid shares will be freely tradable.</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">b.</TD><TD STYLE="text-align: justify"><B>The second restricted shares</B> - Holders of JPW
will be prevented from selling the said shares for a period of 15 months from the date of fulfillment of the milestone according
to the Purchase agreement followed by a 9 months period in which each month these shareholders may sell 1% of the Company shares
they own, and after the passing of 24 months from the Closing Date these aforesaid shares will be free.</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">c.</TD><TD STYLE="text-align: justify"><B>The balance shares</B> &ndash; The balance shares
issued to JPW according to the Purchase Agreement will be freely tradable and transferrable only subject and in accordance with
the restriction provisions determined in paragraph 15c of the Israeli Securities Law 1968, and the Israeli Securities Regulations
(details pertaining to paragraphs 15a and 15 to the Law) 2000.</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">21.1.1.</TD><TD STYLE="text-align: justify">The table below presents the restriction provisions
applicable to the shares issued to JPW:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 66.75pt; text-align: justify; text-indent: -38.15pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24%; border: black 1pt solid">The Milestone</TD>
    <TD STYLE="width: 28%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid">The first restricted shares</TD>
    <TD STYLE="width: 24%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid">The second restricted shares</TD>
    <TD STYLE="width: 24%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid">The balance shares</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Completion shares</TD>
    <TD STYLE="vertical-align: bottom; border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold"><FONT STYLE="color: red"><B><STRIKE>6,945,469</STRIKE></B></FONT><B><FONT STYLE="text-underline-style: double; color: blue"><U>7,119,907 </U></FONT></B></TD>
    <TD STYLE="vertical-align: bottom; border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">0</TD>
    <TD STYLE="vertical-align: bottom; border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">0</TD></TR>
<TR>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Milestone 1</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">8,559,692</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">0</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">0</TD></TR>
<TR>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Milestone 1A</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">3,804,307</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">1,902,154</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">5,706,461</TD></TR>
<TR>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Milestone 1B</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">0</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">2,853,231</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">2,853,230</TD></TR>
<TR>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Milestone 2A*</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">3,614,092</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">8,654,800</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">8,654,799</TD></TR>
<TR>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Milestone 2B*</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">5,706,461</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">4,755,385</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">4,755,384</TD></TR>
<TR>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Milestone 3</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">7,418,400</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">4,850,492</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">4,850,492</TD></TR>
<TR>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Milestone 4A</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">0</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">2,853,231</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">2,853,230</TD></TR>
<TR>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Milestone 4B</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">0</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">1,902,154</TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; font-weight: bold">1,902,153</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 32.35pt">* Milestone 2A and 2B are alternate, and the
fulfillment of one of these milestones cancels the possibility that the other of the two milestones will be fulfilled. It
should be noted that is is possible that any of these milestones will be fulfilled.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 32.35pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>58 </SUP>It should be noted that in certain circumstances,
JPW will be permitted to sell Company Shares out of the total first or second restricted shares, and up to a total amount of USD
2 million in a period of 9 months since their issuance (&quot;<B>the Free Shares</B>&quot;)</P>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">21.2.</TD><TD STYLE="text-align: justify">The voluntary lock-up period applied to the shares
issued to the Offerees, except for JPW (hereinafter: &quot;<B>The Balance Offerees</B>&quot;), are as detailed below:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in; text-align: left">a.</TD><TD STYLE="text-align: justify">The Balance Offerees will be limited to sell their
Company shares during 12 months from the Closing Date after which they may sell 50% of their holding, and at the passing of 24
months from the Closing Date these shareholders will be entitled to sell all of their shares in the Company.</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in; text-align: left">b.</TD><TD STYLE="text-align: justify">Should the Company choose, at its sole discretion,
to pay the milestone payments by means of shares the aforesaid lock-up period will apply, by virtue of the milestones, also to
the 50% of the shares issued to the Balance Offerees. 50% of the shares issued to the Balance Offerees for payment of the milestones
will be locked-up for a period of 15 months from the date of closing followed by a 9 months period in which each month these shareholders
may sell 1% of the Company shares they own, and after the passing of 24 months from the Closing Date these aforesaid shares will
be freely tradable, all of these subject to the provisions of the law.</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">21.3.</TD><TD STYLE="text-align: justify">The lock-up provisions stipulated in paragraph 15c
to the Israeli Securities Law 1968, and the Israeli Securities Regulations (details with regard to paragraphs 15a and 15c to the
Law) 2000.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">According to the Israeli Securities
Law 1968 and the Israeli Securities Regulations (details with regard to paragraphs 15a and 15c to the Law) 2000, the issued shares
(issued to the Offerees according to the Purchase Agreement) will be subject to the restrictions detailed below (hereinafter: &quot;Lock-up
Provisions&quot;)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in; text-align: left">21.3.1.</TD><TD STYLE="text-align: justify">During a period of 6 months from the date on which
the issued shares will be issued according to this report, the Offerees will not be entitled to offer the shares issued to them
as aforesaid, during trade on the stock exchange, without publishing a prospectus released for publication by the Securities Authority.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63.75pt; text-align: justify; text-indent: -38.15pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in; text-align: left">21.3.2.</TD><TD STYLE="text-align: justify">During a period of 6 consecutive quarters, which shall
be counted as of the end of the aforementioned period, the Offerees will be entitled to offer as part of the trade on the stock
exchange, without publishing a prospectus released for publication by the Israeli Securities Authority, on any trading day, not
more than the average daily turnover the issued shares on the stock exchange, during a period of 8 weeks prior to the proposal
date, providing that the quantity offered each quarter will not exceed 1% of the Company's issued and outstanding share capital
(hereinafter: the &quot;<B>Drizzling Period</B>&quot;).</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63.75pt; text-align: justify; text-indent: -38.15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.25pt; text-align: justify">&quot;<B><I>Issued and outstanding
capital</I></B>&quot; -except shares derived from exercise or conversion of convertible securities allocated until the date of
the placement and not yet realized or converted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.25pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.25pt; text-align: justify">The above mentioned will apply
also to shares purchased from the Offeree during absolute lock-up period or the Drizzling Period aforesaid, without a prospectus
and not during trade on the stock exchange.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.25pt; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.25pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.25pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">22.</TD><TD STYLE="text-align: justify; text-indent: 0.45in"><U>Discussion of the Board of Directors regarding
approval of the placement, value determined for shares and the consideration in respect thereof</U></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.25pt; text-align: justify; text-indent: -16.25pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">The Audit Committee and the
Company Board of Directors have approved the Company's engagement in the Transaction agreement and the submission of this Transaction
Report in its meeting dated September 9, 2012, according to the reasons detailed below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">a.</TD><TD STYLE="text-align: justify; text-indent: 0.15in">The Audit Committee and the Company Board of Directors
were of the opinion that Kitov is active in the same fields the Company is traditionally active in, and that its acquisition will
increase the overall products it develops, with emphasize on those products in advanced stages of development (phase 3).</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">b.</TD><TD STYLE="text-align: justify; text-indent: 0.15in">The Audit Committee and the Company Board of Directors
were of the opinion that the Company&rsquo;s engagement in the Purchase Agreement will enable the Company to enter immediately
Phase III clinical trials for a drug of significant market potential.</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">c.</TD><TD STYLE="text-align: justify; text-indent: 0.15in">The Audit Committee and the Company Board of Directors
were of the opinion that the Company&rsquo;s engagement in the Purchase Agreement and the assets that it will receive as a result
of its completion are worthy assets and based on the valuation, are transferred to the Company at a worthy and proper value with
potential to better the Company and strengthen the volume of its assets.</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">d.</TD><TD STYLE="text-align: justify; text-indent: 0.15in">The Audit Committee and the Company Board of Directors
were of the opinion that the terms of the Purchase Agreement are in the benefit of Company and its shareholders, <I>inter alia</I>,
since the transaction is executed mostly based on payments subject to the fulfillment of scientific and commercial milestones,
a fact that decreases the Company's exposure.</TD>
</TR></TABLE>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">23.</TD><TD STYLE="text-align: justify; text-indent: 0.45in"><U>Names of directors who approved the extraordinary
private placement</U></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">At the meeting of the Company's Board of Directors convened
on October 21 2012, at which submission of this report was approved, Amit Yonay (Chairman of the Board of Directors), Ben-Zion
Weiner (Director), Marc Allouche (Director), Dafna Cohen (External Director), Jaron Diament (External Director) and David Grossman
(Director and CEO), participated.<FONT STYLE="text-underline-style: double; color: blue"><U> At the meeting of the Audit Committee
of the Company's Board on October 21, 2012, at which submission of this report was approved, Marc Allouche (Director), Dafna Cohen
(External Director) and Jaron Diament (External Director), participated.</U></FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">24.</TD><TD STYLE="text-align: justify; text-indent: 0.45in"><U>Date of implementation of the extraordinary private
placement</U></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">On the Record Date and subject
to the fulfillment of the prerequisites, the Company will allocate on the Date of Completion the securities issued to the Offerees
and at the same time assign the whole of the Offerees holdings in Kitov to the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>25.</B></TD><TD STYLE="text-align: justify; text-indent: 0.45in"><B><U>Announcement regarding convening an extraordinary
general meeting of the Company shareholders</U></B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.25pt; text-align: justify; text-indent: -16.25pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt"><FONT STYLE="color: black">In accordance with
the Companies Law announcement is hereby transmitted regarding convention of an extraordinary meeting of the Company&rsquo;s
shareholders, to be held on </FONT><FONT STYLE="color: red"><STRIKE>Wednesday</STRIKE></FONT><FONT STYLE="color: blue"><U>Thursday, </U></FONT><FONT STYLE="color: red"><STRIKE>November </STRIKE></FONT><FONT STYLE="color: blue"><U>December </U></FONT><FONT STYLE="color: red"><STRIKE>28</STRIKE></FONT><FONT STYLE="color: blue"><U>6,
2012, </U></FONT><FONT STYLE="color: red"><STRIKE>2012,</STRIKE></FONT> at 09:00 at the law offices of Kantor and Co., 12
Abba Hillel Silver St., 8th floor, Ramat-Gan, Israel with on its agenda the Purchase Agreement including the extraordinary
private placement in respect thereof, as described above presented for approval, to remove any doubt, as a whole with all the
engagements and resolutions required to complete it, as detailed below:</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.3in; text-align: left">25.1.</TD><TD STYLE="text-align: justify">Approve the Company's engagement in a Purchase Agreement
with Kitov and an extraordinary private placement in respect thereof, which includes the Completion Shares, Additional Warrants,
Service Providers Warrants, and issuance of shares in accordance with the milestones stipulated in the Purchase Agreement.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 51pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.3in; text-align: left">25.2.</TD><TD STYLE="text-align: justify">Approve to consolidate the Company's capital at a
ratio of 10:1 in a manner that every 10 Company shares of NIS 0.1 par value each will be consolidated as one share of NIS 1.0
par value each.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 51pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.3in; text-align: left">25.3.</TD><TD STYLE="text-align: justify">Approve the appointment of Dr. Paul Waymack and Mr.
Simcha Rock as Directors in the Company &ndash; the proposed version of the resolution: to approve in accordance with the Company's
Articles of Association the appointments of Dr. Paul Waymack and Mr. Simcha Rock as Directors in the Company until next year's
annual general meeting. The vote regarding each of the directors as aforesaid will be done separately. Declarations of candidates
for appointment as directors are enclosed as Appendix B to the report.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 51pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.3in; text-align: left">25.4.</TD><TD STYLE="text-align: justify">Approve the Company&rsquo;s engagement in a service
agreement with Dr. Paul Waymack with regard to his position as Chairman of the Company's Board of Directors and as executive in
charge of the clinical and regulatory development of all the Company's products in return for a monthly management fee of USD
9,166 plus VAT, as applicable.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 51pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify"><B>It is hereby clarified that
all the resolutions on the meeting's agenda are <U>interconnected</U> resolutions, namely that the rejection of one of the resolutions
may be deemed as a rejection of the other resolutions even though another resolution has been accepted and approved by the extraordinary
general meeting of the Company&rsquo;s shareholders.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>26.</B></TD><TD STYLE="text-align: justify; text-indent: 0.45in"><B><U>Meeting venue and date</U></B></TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.3in; text-align: left"><FONT STYLE="color: black">26.1.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: black">The extraordinary general
meeting will convene on </FONT><FONT STYLE="color: red"><STRIKE>Wednesday</STRIKE></FONT><FONT STYLE="text-underline-style: double; color: blue"><U>Thursday</U></FONT><FONT STYLE="color: black">,
</FONT><FONT STYLE="color: red"><STRIKE>November </STRIKE></FONT><FONT STYLE="text-underline-style: double; color: blue"><U>December
</U></FONT><FONT STYLE="color: red"><STRIKE>28</STRIKE></FONT><FONT STYLE="text-underline-style: double; color: blue"><U>6</U></FONT><FONT STYLE="color: black">,
2012 at 09:00 at the law offices of Kantor &amp; Co. on 12 Abba Hillel Silver, 8th floor, Ramat-Gan, Israel. A deferred meeting,
if necessary, will convene on </FONT><FONT STYLE="color: red"><STRIKE>Wednesday</STRIKE></FONT><FONT STYLE="text-underline-style: double; color: blue"><U>Thursday</U></FONT><FONT STYLE="color: black">,
December </FONT><FONT STYLE="color: red"><STRIKE>5</STRIKE></FONT><FONT STYLE="text-underline-style: double; color: blue"><U>13</U></FONT><FONT STYLE="color: black">,
2012 at the same place and time</FONT><FONT STYLE="text-underline-style: double; color: blue"><U>.</U></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 44.6pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.3in; text-align: left">26.2.</TD><TD STYLE="text-align: justify">In the extraordinary general meeting, a legal quorum
will constitute the presence of at least two (2) shareholders, represented by themselves or by their proxies, who hold or represent
together at least 33.33% of the voting rights in the Company. If at the elapse of thirty minutes from the meeting's scheduled
date, the legal quorum is not achieved, the meeting will be automatically deferred to the same day of the following week, at the
same time and place as scheduled for the original meeting; or to a different time or place as decided by the board of directors
in an announcement to the shareholders. If in such deferred meeting no legal quorum is obtained within thirty minutes from the
scheduled date, two shareholders that are present by themselves or by a proxy will form a legal quorum and the meeting will be
entitled to discuss the issues on the agenda.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 44.6pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 44.6pt; text-align: justify; text-indent: -25.5pt"></P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.3in; text-align: left">26.3.</TD><TD STYLE="text-align: justify">The date for establishing the shareholders' right
to vote in the general meeting, as stipulated in Section 182 to the Companies Law, is Monday, October 29, 2012 (&quot;<B>the meeting
participation record date</B>&quot;).</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.3in; text-align: left">26.4.</TD><TD STYLE="text-align: justify">Any existing shareholder of the Company on the record
date, whether or not the shares are registered in its name or are held by him through a member of the Stock Exchange, is entitled
to participate in the meeting by himself or via a proxy. Pursuant to the Israeli Companies Regulations (Proof of Share Ownership
for Voting in General Meetings), 2000, a Company shareholder whose shares are held by a member of the Stock Exchange will be able
to participate in said meeting by himself or via a proxy provided that an original proof of Company share ownership on the meeting
participation record date is delivered to the Company before the meeting (to be obtained by that member of the Stock Exchange).
Any documents appointing proxies (&quot;<B>the letters of appointment</B>&quot;) as well as the original authorizations under
which the letters of appointment (if any) were signed must be deposited with the Company's registered headquarters up to 48 hours
prior to the date of the meeting<U>.</U></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify; text-indent: -25.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.4in; font-size: 10pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.3in; font-size: 10pt">26.5.</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">A written format of the voting paper and statements of position, if any, can be found at the Israel Securities Authority's site at <U>www.magna.isa.gov.il </U>and at the TASE's site at <U>www.tase.co.il</U>. In addition, a shareholder may apply to the Company directly for receiving the written format of the voting paper and statements of position, if any. A member of the Stock Exchange will send, at no consideration, via e-mail, a link to the written format of the voting paper and statements of position, if any, to each shareholder that is not registered with the Company's shareholders' registrar and whose shares are listed with that member of the Stock Exchange, if the shareholder has notified the member of the Stock Exchange of its wish and provided that the notice was made with respect to a certain securities account and prior to the record date. Any shareholder whose shares are listed with a member of the Stock Exchange is entitled to receive proof of ownership from the relevant member of the Stock Exchange at the member of the Stock Exchange's branch or by mail to their address in return for payment of delivery fees only, if so requested, and this application will be granted in advance to the relevant securities account. Pursuant to the Israeli Companies Regulations (Voting Paper and Statements of Position), 2005, that shareholder will vote on the second part of the voting paper and specify the manner of voting and deliver it to the Company or mail it via registered mail whereby the proof of ownership must reach the Company's headquarters no later than 72 hours prior to the meeting date</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify; text-indent: -25.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.3in; text-align: left">26.6.</TD><TD STYLE="text-align: justify">The Company does not allow voting via the internet.</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.3in; text-align: left">26.7.</TD><TD STYLE="text-align: justify">One or more shareholders that hold at least five percent
or more of total voting rights and also hold such rate 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, are entitled to review the voting papers as detailed in Regulation
10 to the Companies Regulations (Voting Paper and Statements of Position), 2005.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify; text-indent: -25.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25.5pt; text-align: justify; text-indent: -25.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.3in; text-align: left">26.8.</TD><TD STYLE="text-align: justify">The last date for producing statements of position
is within ten days after the meeting participation record date (&quot;<B>the last statement of position date of delivery</B>&quot;),
namely: Thursday, November 8, 2012 and the last date for producing the board of directors' response to the statements of position
is five (5) days after the last statement of position date of delivery, namely Tuesday, November 13, 2012.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 44.6pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>27.</B></TD><TD STYLE="text-align: justify; text-indent: 0.45in"><B><U>Required majority for decision</U></B></TD>
</TR></TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">The required majority for approval
of the decision stated in paragraphs 25.1 &ndash; 25.4 above is a regular majority of the participants in the voting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>28.</B></TD><TD STYLE="text-align: justify; text-indent: 0.45in"><B><U>Securities Authority</U></B></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">Within 21 days from the date
of submission of this immediate report, the Israel Securities Authority (&ldquo;<B>the Authority</B>&rdquo;) is entitled to instruct
the Company to provide, by a certain date, explanation, details, information, data and documents regarding the engagement in the
transaction object of this mediate report, and to instruct the Company to amend this immediate report, in such manner and as such
time as determined.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">In the event of such instruction
for amendment, the Authority or an employee thereof is entitled to determine deferral of the date of the general meeting until
a date not earlier than three business days and not later than twenty one (21) days from the date of publication of the amendment
to the immediate report.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>29.</B></TD><TD STYLE="text-align: justify; text-indent: 0.45in"><B><U>Review of documents</U></B></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">Documents relating to this immediate
report may be reviewed at the offices of Kantor &amp; Co. Law Offices, Abba Hillel Silver Street 12, 8<SUP>th</SUP> Floor, Ramat
Gan, Israel, during regular work hours and after advance coordination by telephone: +(972)-3-6133371.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>30.</B></TD><TD STYLE="text-align: justify; text-indent: 0.45in"><B><U>Company representatives</U></B></TD>
</TR></TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify"><FONT STYLE="color: black">The
Company&rsquo;s representatives responsible for the immediate report are Advocate Ronen Kantor and/or Ron So</FONT><FONT STYLE="text-underline-style: double; color: blue"><U>u</U></FONT><FONT STYLE="color: black">l</FONT><FONT STYLE="text-underline-style: double; color: blue"><U>e</U></FONT><FONT STYLE="color: black">ma
of Kantor &amp; Co. Law Offices, 12 Abba Hillel Silver, 8<SUP>th</SUP> Floor, Ramat Gan, Israel, during regular work hours and
after advance coordination by telephone: +(972)-3-6133371.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.1pt; text-align: justify">&nbsp;</P>

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

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: justify">XTL BIOPHARMACEUTICALS LTD.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 5%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 45%; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">Date: November 28, 2012</TD>
    <TD STYLE="text-align: justify">By:</TD>
    <TD STYLE="text-align: justify; border-bottom: Black 1pt solid">/s/ David Grossman</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Name:</TD>
    <TD STYLE="text-align: justify">David Grossman</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Title:</TD>
    <TD STYLE="text-align: justify">Chief Executive Officer</TD></TR>
</TABLE>


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

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

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