---

---

Exhibit 4(a)(5)

TRANSLATION FROM THE ORIGINAL HEBREW(for convenience only; the binding version is the original Hebrew version)

# MEMORANDUM OF
AGREEMENTS

Drawn up and signed
in Tel-Aviv on __ February 2007

between:

| |                                                                                                                                                            | 
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------- | 
| | THE ISRAEL CORPORATION LTD.Private company no. _________________________
Address: ________________________________
(hereinafter: "The Israel Corporation") | 
| | of the first part;                                                                                                                                         | 

and:

| |    |                                                                                
| | -- | -------------------------------------------------------------------------------
| | 1. | SCAILEX CORPORATION LTD.Public company no. 52-003180-8
(hereinafter: "Scailex")

| |    |                                                                                    
| | -- | -----------------------------------------------------------------------------------
| | 2. | PETROLEUM CAPITAL HOLDINGS LTD.Private company no. 51-391980-3
(hereinafter: "PCH")

| |                                                                                                                | 
| | -------------------------------------------------------------------------------------------------------------- | 
| | Both of 3 Azrielli Center, Tel-Aviv 67023 [Israel]
(Scailex and PCH to be called hereinafter: "Scailex Group") | 
| | of the second part;                                                                                            | 

|WHEREAS |  | the
State of Israel and Oil Refineries Ltd. (hereinafter: "ORL") publicized a
prospectus, pursuant whereto the State shall offer up to 56%
of ORL's share capital to the public by the end of February,
and shall register 44% of the ORL's share capital, which
were previously offered to institutional investors, for trading on the
Tel-Aviv Stock Exchange Ltd. (hereinafter: "TASE")
(hereinafter jointly: "the Offering");
|------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|AND WHEREAS |  | the Israel  Corporation  and Scailex wish to acquire shares of ORL during
the Offering                          and subsequently,  and to regulate the relations
between them as shareholders  holding                          ORL shares:
|----------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|AND WHEREAS |  | Scailex  intends  to carry out the  investment  in ORL shares  through  PCH,
a company                          under its control;
|----------- |  | ----------------------------------------------------------------------------------------------------------------------------------

1

---

---



WHEREFORE, IT IS HEREBY AGREED, STIPULATED AND DECLARED
BETWEEN THE PARTIES AS FOLLOWS:

|1. | Acquisition
of ORL shares and the initial shareholding ratio
|-- | ------------------------------------------------------------

| | 1.1 | Acquisition during the Offering  the Israel Corporation and Scailex Group
shall submit joint bids to acquire ORL shares during the Offering pursuant to the dates
and conditions prescribed in the prospectus of the Offering, in such manner that the
Israel Corporation shall hold 80% of the shares of ORL that shall be acquired, while
Scailex Group shall hold the remaining 20% of these shares (hereinafter: the
Initial Shareholding Ratio).
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 1.2 | Quantities and prices  the quantity of ORL shares and the price per share
that shall be bid for them shall be determined by consent. In the event of a disagreement
in relation to the quantity and price as stated, each side shall be free to act at its
discretion, with the consequence being that this Memorandom of Agreements shall be
cancelled without any of the parties having any right or cause of claim whatsoever by
virtue thereof. The bid to acquire shares of ORL during the Offering shall be effected
jointly and in compliance with the conditions of the Offering, under the same conditions,
and according to the Initial Shareholding Ratio.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 1.3 | Acquisitions subsequent to the conclusion of the Offering  all additional
shares or securities of ORL that shall be acquired by the parties subsequent to the
Offering, jointly or severally, shall become part of the holding in ORL shares upon which
the provisions of this Memorandum of Agreements shall apply (the Relevant
Shareholding). Decisionmaking regarding the acquisition of ORL shares in the
secondary market after the conclusion of the Offering, whether on the TASE or
off-the-floor, including the offering of tender offers to the public, shall be reached by
consent. Notwithstanding that stated, each of the parties shall be entitled to take
advantage of opportunities and acquire shares of ORL, provided, however, that it shall
offer to the other party, within 3 (three) business days of the acquisition date, to
acquire a proportionate share of the shares that it shall acquire, as if, on that same
date, the Call Option had been exercised, as defined hereunder; i.e., 55% to the Israel
Corporation and 45% to PCH, this at cost price, plus market interest up until payment,
which shall be executed within 14 (fourteen) business days of the offer date. Acquisition
of ORL shares up to the rate of 45% of ORLs share capital shall become an integral
part of the Relevant Shareholding.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
provisions of this Memorandum of Agreements shall not apply to acquisitions of additional
shares or securities of ORL by the parties or by any of them subsequent to the date on
which the Relevant Shareholding shall reach a rate exceeding 45% of ORLs issued
share capital, and these additional shares or securities shall not constitute a part of
the Relevant Shareholding.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

2

---

---



|2. | Judicial
force
|-- | --------------

| | This
Memorandum of Agreements has binding judicial force, subject to the approval of the boards
of directors of each of the parties by 10:30 a.m. on Sunday, 18 February 2007. The parties
shall conduct negotiations with bona fides with the aim of arriving at a detailed
agreement on the basis of the principles specified in this Memorandum of Agreements by 15
March 2007. This Memorandum of Agreements shall be in effect: (1) as long as the
percentage of ORL shares acquired by the parties exceeds 20% of ORLs issued share
capital, and the shareholding ratio of Scailex Group shall not drop below 8% of ORLs
share capital; or (2) 24 months have elapsed since the signing date of this Memorandum of
Agreements  whichever of the two is later.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | Call
option to Scailex
|-- | ----------------------

| | 3.1 | With the objective of enabling Scailex Group to effect preparations in relation to the
Groups debt structure in order to conform to the rules of the Bank of Israel
regarding a Single Borrower and Group of Borrowers, PCH shall be
granted a right of option to increase the ratio of its holdings in the Relative
Shareholding above the Initial Shareholding Ratio to a ratio of 45% (forty-five percent)
of the shares to be acquired by the parties within the framework of the Offering, within
120 days of the date that the ministers approval is received pursuant to the
Government Companies Order (the State of Israels Vital Interests in Oil Refineries
Ltd.), 5767  2007, or 9 (nine) months after the signing date of this
Memorandum of Agreements, whichever is earlier (hereinafter: Call
Option). To dispel any doubts, Scailex Group shall not be entitled to exercise
the Call Option in relation to that portion of the shares that are the subject of the Call
Option.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.2 | The purchase price per share that is the subject of the Call Option shall be the average
shekel cost price of ORL shares in the Relevant Shareholding, being linked to the Consumer
Price Index, plus interest at the rate of 5% per annum, and subject to the customary
adjustments.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | The
rights of the parties
|-- | -------------------------

| | 4.1 | Appointment of directors  the parties shall exercise their voting power and
shall act, to the extent possible, in order to appoint directors on ORLs board and
committees, as well as on the boards and committees of ORLs subsidiaries and held
companies, pro rata to their articulation of holdings in the Relevant Shareholding,
provided, however, that Scailex Group shall be entitled to at least one director on every
board of directors or committee as stated, as long as the parties can cause the
appointment of two or more directors.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3

---

---



| | 4.2 | Voting during ORLs general assemblies  prior to every general assembly
of ORL, the parties shall convene a preliminary meeting during which it shall be resolved
by a vote (pro rata to their articulation of holdings in the Relevant Shareholding)
how they shall vote and act during the general assembly, and the parties shall conduct
themselves in conformance with this resolution.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.3 | Dividend policy  the parties shall take action, in compliance with all
applicable statutes and regulations, so that ORL and its subsidiaries shall adopt a
dividend policy whereby at least 75% of the annual profit that is appropriate for
distribution each year shall be distributed.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.4 | Right of First Refusal  should Scailex Group desire to sell its shares in ORL
to a third party, the Israel Corporation shall be entitled to a Right of First Refusal and
shall be entitled to purchase all shares being offered for sale, according to the
following conditions:
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (1) | During the first year  commencing as of the signing date of this
                    Memorandum of Agreements  according to the average cost price of ORL
                    shares acquired by Scailex Group, in values linked to the CPI, plus interest at
                    the rate of 5% per annum, subject to the customary adjustments. This subclause
                    (1) shall not apply if the third party holds more than 45% of ORLs issued
                    share capital prior to the sale; as well as 
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | After the end of the first year  commencing as of the signing date of this
                    Memorandum of Agreements, or, in the instance whereby the restriction stipulated
                    in subclause (1) applies  according to the price to be offered by the
                    third party.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.5 | Tag-along right  Should the Israel Corporation desire to sell all or a
portion of its shares in ORL to a third party, Scailex Group shall have the right to join
in such a sale, according to their articulation of holdings in the Relevant Shareholding.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | The
parties rights in the event of exercise of the Call Option
|-- | ---------------------------------------------------------------

| | Should
Scailex Group exercise the Call Option and acquire the shares deriving from the exercise
thereof, then, in addition to the rights specified above in clauses 3 and 4, the following
provisions shall apply:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4

---

---



| | 5.1 | Right of First Refusal and Tag-along Right  the parties shall grant each
other a right of first refusal in relation to the ORL shares held by each of them;
furthermore, each of the parties shall have a tag-along right in the event of a sale of
all or a portion of the holdings of one party, provided, however, that the right of first
refusal was not exercised, pro rata to their articulation of holdings in the
Relevant Shareholding. In the event of a transfer of ORL shares to a third party, such
party shall be added as a party to this Memorandum of Agreements or to the subsequent
detailed agreement, and all provisions thereof shall also apply to such third party
(rights and obligations). Arrangements determined by consent shall be stipulated in the
detailed agreement for the instance of a transfer of control in the parent corporations of
the parties to this Memorandum of Agreements, which shall give expression to the
principles that are the subject of this Memorandum of Agreements.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.2 | The appointment, discharge from office and employment conditions of the C.E.O., other
executive officeholders, auditors and lawyers in ORL and its subsidiaries shall be
determined by consent in the detailed agreement, subject to all applicable statutes and
regulations.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.3 | The Israel Corporation shall recommend one external director in ORL, and Scailex Group
shall recommend the second external director.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------

| | 5.4 | Minority interests  Scailex Group shall be vested with customary minority
interests, such as the need for its consent in relation to the following decisions
pertaining to ORL or its subsidiaries and held companies: amendment to the Articles of
Association, structural changes (merger, split, reorganization, material purchase/sale,
etc.), liquidation/stay of proceedings, registration of securities or debt for trading,
interested-party transactions.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.5 | The Israel Corporation is aware of Scailex Groups undertakings vis-à-vis
Linura Holding AG, a shareholder in PCH, which is attached as Appendix A to this
Memorandum of Agreements, and if, and as long as the parties shall control ORL, the Israel
Corporation shall act so that this undertaking shall be upheld, subject to the provisions
of all applicable statutes and regulations.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.6 | BMBY  commencing after 12 months have elapsed since the exercise date of the
Call Option, one party to this agreement shall be entitled to offer to purchase all shares
of the other party constituting part of the Relevant Shareholding, at a price per ORL
share that shall be quoted in the offer, and the other party shall be obligated, in such
case, to accept the offer, or, alternatively, to purchase all the shares of the first
party constituting part of the Relevant Shareholding, at the price per share that was
quoted in the offer as stated, and all at the discretion of the second party.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5

---

---



|6. | Confidentiality
and reporting
|-- | -----------------------------

| | Subject
to all applicable statutes and regulations, the parties shall maintain the confidentiality
of this Memorandum of Agreements and their decisions pursuant thereto. Reporting to the
public shall be coordinated between the parties and carried out in compliance with all
applicable statutes and regulations.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. | Law
and jurisdiction
|-- | --------------------

| | In
any instance of a dispute between the parties, the parties shall first refer to Advocate
Ram Caspi and Advocate David Hodak in order that they might attempt to reach a compromise
between the parties positions and bring them to agreement to the extent possible,
before referring to the competent courts. Israeli law shall apply to this Memorandum of
Agreements, and the courts in Israel shall have jurisdiction.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

And in witness hereto,
the parties have hereunto signed:

|                                              |                                                
|--------------------------------------------- | -----------------------------------------------
|
|
|
|
|/s/ The Israel Corporation Ltd. | /s/ Scailex Corporation Ltd.     
|The Israel Corporation Ltd.                   | Scailex Corporation Ltd.                       
|                                             
|By:                                           | By:                                            
|Name: Gilad Nir                               | Name: Eran Schwartz, Yahel Shachar             
|Title: Deputy C.E.O.                          | Title: Chairman; C.E.O.                        
|Signature: /s/ Gilad Nir                      | Signature: /s/ Eran Schwartz, /s/ Yahel Shachar
|                                             
|By:                                           | By:                                            
|Name: Yossi Rosen                             | Name: Petroleum Capital Holdings Ltd.          
|Title: C.E.O.                                 | Title: Directors                               
|Signature: /s/ Yossi Rosen                    | Signature: /s/ Eran Schwartz, /s/ Yahel Shachar

6

---

---



APPENDIX A

Linura Supplier Undertaking.
The Parties acknowledge that a company nominated by Linura, an international supplier and
off-taker in the crude oil and petroleum products market, will use its best efforts to
provide preferred competitive terms for the benefit of ORL. For as long as Linura holds at
least 19.9% of the shares of PCH, and subject to any applicable legal and regulatory
restrictions, the Parties agree to use their best efforts to significantly increase the
nominated companys share in the supply of crude oil and/or petroleum products sold
to ORL and/or any purchase of petroleum products designated by ORL for export, provided,
however, that the nominated company extends the most competitive offers to ORL and that
ORLs competitive status as a purchaser or supplier, as the case may be, will not be
adversely affected.

7

---

---



[TRANSLATED FROM THE
HEBREW]

# Addendum of 19th
February 2007

To
A Memorandum Of Understanding Made in Tel Aviv on 18th February 2007

|BETWEEN: | The Israel Corporation Ltdpublic company no. 52-002801
of 23 Arnia Street, Tel Aviv
(hereinafter referred to as "the Israel Corporation")
|-------- | -----------------------------------------------------------------------------------------------------------------------------------------

| | of
the one part
| | ---------------

|     |    |                                       
|---- | -- | --------------------------------------
|AND: | 1. | Scailex Corporation Ltd               
|    
|     |    | public company no. 52-0031808         
|     |    | (hereinafter referred to as "Scailex")
|    
|     | 2. | Petroleum Capital Holdings Ltd        
|    
|     |    | private company no. 51-3919803        
|     |    | (hereinafter referred to as "PCH")    

| | both
of 3 Azrieli Centre, Tel Aviv 67023                            (Scailex  and PCH are
 hereinafter  together  referred  to as "the  Scailex                            Group")
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | of
the other part
| | -----------------

|WHEREAS | on
18th  February 2007 the parties made a memorandum  of  understanding  with regard
                           to a joint  offer to purchase  shares of Oil  Refineries  Ltd
 (hereinafter                            referred to as "Oil  Refineries") on issue and
with regard to holding those                            shares;
|------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|AND WHEREAS | the parties wish to augment the  memorandum of  understanding  as provided  below
in                            this addendum (hereinafter referred to as "addendum").
|----------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

---



# NOW THEREFORE IT IS
WARRANTED, PROVIDED AND AGREED BETWEEN THE PARTIES AS FOLLOWS:

|1. | The provisions of the memorandum of understanding and any addendum or amendment
          thereto, including this addendum (hereinafter referred to as the
          memorandum of understanding), shall be inferior to any financing
          arrangement of either of the parties with a banking institution or insurance
          company (hereinafter referred to as the pledgor), which is intended
          for financing the purchase of the Oil Refineries shares, whether in advance or
          after the purchase, to secure which Oil Refineries shares have been charged to
          the pledgor by the recipient of the financing as part of the said arrangement
          (hereinafter referred to as financing arrangement).
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | The provisions of the memorandum shall not limit any right of the pledgor,
          including pursuant to the charge documents made with the pledgor and including
          in the event of realising Oil Refineries shares in accordance with the
          provisions of the financing arrangement.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | In the event of a breach of the financing arrangement by one party and the
          pledgors notice of its intention to realise the charge of all or any of
          the Oil Refineries shares that are charged in its favour, in the pledgors
          discretion, the pledgor may permit the other party to discharge all the first
          partys debts to the pledgor that have been called in by the pledgor for
          immediate payment, and to take an irrevocable assignment of all the
          pledgors rights in those shares.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | Realising the charge of the shares by the other party by virtue of the charge
          assigned to it as aforesaid shall be subject to the provisions of the memorandum
          of understanding.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | Expressions not expressly defined in this addendum shall have the meanings
          assigned to them in the memorandum of understanding.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------

|6. | The provisions of this addendum, together with the necessary mechanisms and
          documents, shall be set out in the detailed agreement.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------

|7. | Any agreement or document that is made between a party to this addendum and the
          pledgor shall supersede any document or understanding between the parties
          pursuant to this agreement.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

2

---

---



# AS WITNESS THE HANDS
OF THE PARTIES

|                                          |                                           
|----------------------------------------- | ------------------------------------------
|/s/ Israel Corporation Ltd. | /s/ Scailex Corporation Ltd.
|The Israel Corporation Ltd                | Scailex Corporation Ltd                   

|           |                   |            |                  
|---------- | ----------------- | ---------- | -----------------
|By:        |                   | By:        |                  
|Name:      | Gilad Nir         | Name:      | Eran Schwartz    
|Position:  | Deputy to the CEO | Position:  | Chairman         
|Signature: | /s/ Gilad Nir     | Signature: | /s/ Eran Schwartz
|          
|By:        |                   | By:        |                  
|Name:      | Yossi Rosen       | Name:      | Yahel Shachar    
|Position:  | CEO               | Position:  | CEO              
|Signature: | /s/ Yossi Rosen   | Signature: | /s/ Yahel Shachar

| |                                |                  
| | ------------------------------ | -----------------
| | /s/ Petroleum Capital Holdings
| | Petroleum Capital Holdings Ltd
| |                               
| | By:                            |                  
| | Name:                          | Eran Schwatrz    
| | Position:                      | Chairman         
| | Signature:                     | /s/ Eran Schwartz
| |                               
| | By:                            |                  
| | Name:                          | Yahel Shachar    
| | Position:                      | CEO              
| | Signature:                     | /s/ Yahel Shachar

3

---

---