---

---

Exhibit 4.(a).56

# FACILITY AGREEMENT

DATED 14TH APRIL, 2005

# US $550,000,000 
CREDIT FACILITIES

for

PARTNER COMMUNICATIONS
COMPANY LTD. 
as Borrower

provided by

# BANK HAPOALIM B.M. 
BANK LEUMI LE-ISRAEL B.M. 
ISRAEL DISCOUNT BANK LTD.

and

# UNITED MIZRAHI BANK
LIMITED

BANK HAPOALIM B.M. 
as Facility Agent

BANK LEUMI LE-ISRAEL
B.M. 
as Co-ordinating Agent
and Security Trustee

|                              |                                                    
|----------------------------- | ---------------------------------------------------
|
|
|
|
|Herzog, Fox & Neeman          | Gross, Kleinhendler, Hodak, Halevy, Greenberg & Co.
|Asia House, 4 Weizmann Street | One Azrieli Center                                 
|Tel Aviv, 64239, Israel       | Tel Aviv 67021, Israel                             
|Tel: +972-(0)3-692 2020       | Tel: +972-(0)3-607 4444                            
|Fax: +972-(0)3-696 6464       | Fax: +972-(0)3-607 4422                            



---

---



# CONTENTS

|   |                                |  
|-- | ------------------------------ | -
|
|
|
|
|1. | DEFINITIONS AND INTERPRETATION | 7

| |     |                                                |   
| | --- | ---------------------------------------------- | --
|
|
|
|
| | 1.1 | DEFINITIONS                                    | 7 
| | 1.2 | ACCOUNTS                                       | 19
| | 1.3 | INTERPRETATION                                 | 19
| | 1.4 | REPLACEMENT OF THE EXISTING FACILITY AGREEMENT | 20

|   |                |   
|-- | -------------- | --
|
|
|
|
|2. | THE FACILITIES | 21

| |     |                                           |   
| | --- | ----------------------------------------- | --
|
|
|
|
| | 2.1 | FACILITY A AND FACILITY B                 | 21
| | 2.2 | THE UMB FACILITY                          | 21
| | 2.3 | RIGHTS AND OBLIGATIONS OF FINANCE PARTIES | 21
| | 2.4 | THE OPTION                                | 22

|   |         |   
|-- | ------- | --
|
|
|
|
|3. | PURPOSE | 22

| |     |                    |   
| | --- | ------------------ | --
|
|
|
|
| | 3.1 | PURPOSE            | 22
| | 3.2 | NO DUTY TO MONITOR | 22

|   |                      |   
|-- | -------------------- | --
|
|
|
|
|4. | CONDITIONS PRECEDENT | 22

| |     |                                  |   
| | --- | -------------------------------- | --
|
|
|
|
| | 4.1 | DOCUMENTARY CONDITIONS PRECEDENT | 22
| | 4.2 | FURTHER CONDITIONS PRECEDENT     | 23
| | 4.3 | COMMENCEMENT DATE                | 23

|   |          |   
|-- | -------- | --
|
|
|
|
|5. | DRAWDOWN | 24

| |     |                                      |   
| | --- | ------------------------------------ | --
|
|
|
|
| | 5.1 | GIVING OF REQUESTS                   | 24
| | 5.2 | REQUESTS AND ADVANCES                | 24
| | 5.3 | DEEMED ADVANCES                      | 25
| | 5.4 | LENDERS OBLIGATIONS TO FUND ADVANCES | 25
| | 5.5 | RELEVANT PERCENTAGES                 | 26
| | 5.6 | PRIMACY OF THE FINANCE DOCUMENTS     | 26

|   |          |   
|-- | -------- | --
|
|
|
|
|6. | CURRENCY | 26

| |     |                                       |   
| | --- | ------------------------------------- | --
|
|
|
|
| | 6.1 | SELECTION                             | 26
| | 6.2 | REVOCATION OF DOLLAR DRAWDOWN REQUEST | 27
| | 6.3 | DRAWDOWNS                             | 27
| | 6.4 | PREPAYMENTS AND REPAYMENTS            | 27
| | 6.5 | FACILITY AMOUNT                       | 27

|   |                           |   
|-- | ------------------------- | --
|
|
|
|
|7. | REPAYMENT AND REBORROWING | 27

| |     |                               |   
| | --- | ----------------------------- | --
|
|
|
|
| | 7.1 | REPAYMENT OF FACILITY A       | 27
| | 7.2 | REPAYMENT OF FACILITY B       | 28
| | 7.3 | REPAYMENT OF THE UMB FACILITY | 28
| | 7.4 | MISCELLANEOUS                 | 28

|   |                             |   
|-- | --------------------------- | --
|
|
|
|
|8. | PREPAYMENT AND CANCELLATION | 28

| |     |                                          |   
| | --- | ---------------------------------------- | --
|
|
|
|
| | 8.1 | VOLUNTARY PREPAYMENT                     | 28
| | 8.2 | MANDATORY PREPAYMENT - DISPOSALS         | 29
| | 8.3 | MANDATORY PREPAYMENT - CHANGE OF CONTROL | 29
| | 8.4 | MISCELLANEOUS PROVISIONS                 | 29
| | 8.5 | CANCELLATION                             | 30



---

---



|   |                             |   
|-- | --------------------------- | --
|
|
|
|
|9. | INTEREST & INTEREST PERIODS | 31

| |     |                                 |   
| | --- | ------------------------------- | --
|
|
|
|
| | 9.1 | RATE OF INTEREST                | 31
| | 9.2 | DUE DATES                       | 31
| | 9.3 | BREACH INTEREST                 | 31
| | 9.4 | INTEREST PERIOD DURATION        | 32
| | 9.5 | INTEREST PERIOD COMMENCEMENT    | 32
| | 9.6 | COINCIDENCE OF INTEREST PERIODS | 32
| | 9.7 | OTHER ADJUSTMENTS               | 32

|    |         |   
|--- | ------- | --
|
|
|
|
|10. | LINKAGE | 32

| |      |                          |   
| | ---- | ------------------------ | --
|
|
|
|
| | 10.1 | LINKAGE TO INDEX         | 32
| | 10.2 | NON-PUBLICATION OF INDEX | 33

|    |          |   
|--- | -------- | --
|
|
|
|
|11. | PAYMENTS | 33

| |      |                            |   
| | ---- | -------------------------- | --
|
|
|
|
| | 11.1 | PLACE                      | 33
| | 11.2 | FUNDS                      | 33
| | 11.3 | CURRENCY                   | 33
| | 11.4 | NO SET-OFF OR COUNTERCLAIM | 33
| | 11.5 | NON-BUSINESS DAYS          | 33
| | 11.6 | PARTIAL PAYMENTS           | 34

|    |       |   
|--- | ----- | --
|
|
|
|
|12. | TAXES | 34

| |      |              |   
| | ---- | ------------ | --
|
|
|
|
| | 12.1 | GROSS-UP     | 34
| | 12.2 | TAX RECEIPTS | 34

|    |                   |   
|--- | ----------------- | --
|
|
|
|
|13. | MARKET DISRUPTION | 35

| |      |                                            |   
| | ---- | ------------------------------------------ | --
|
|
|
|
| | 13.1 | MARKET DISRUPTION                          | 35
| | 13.2 | SUSPENSION OF ADVANCES                     | 35
| | 13.3 | ALTERNATIVE BASIS FOR OUTSTANDING ADVANCES | 35
| | 13.4 | REVIEW                                     | 36

|    |                 |   
|--- | --------------- | --
|
|
|
|
|14. | INCREASED COSTS | 36

| |      |                 |   
| | ---- | --------------- | --
|
|
|
|
| | 14.1 | INCREASED COSTS | 36
| | 14.2 | EXCEPTIONS      | 37

|    |            |   
|--- | ---------- | --
|
|
|
|
|15. | ILLEGALITY | 37

|    |                         |   
|--- | ----------------------- | --
|
|
|
|
|16. | GUARANTEE AND INDEMNITY | 37

|    |                                |   
|--- | ------------------------------ | --
|
|
|
|
|17. | REPRESENTATIONS AND WARRANTIES | 37

| |       |                                     |   
| | ----- | ----------------------------------- | --
|
|
|
|
| | 17.1  | REPRESENTATIONS AND WARRANTIES      | 37
| | 17.2  | STATUS                              | 38
| | 17.3  | POWER AND AUTHORITY                 | 38
| | 17.4  | LEGAL VALIDITY                      | 38
| | 17.5  | NON-CONFLICT                        | 38
| | 17.6  | NO DEFAULT                          | 38
| | 17.7  | CONSENTS AND AUTHORISATIONS         | 39
| | 17.8  | LITIGATION                          | 39
| | 17.9  | INFORMATION                         | 39
| | 17.10 | FINANCIAL STATEMENTS                | 39
| | 17.11 | STATUS OF SECURITY                  | 39
| | 17.12 | PARI PASSU RANKING                  | 40
| | 17.13 | INDEBTEDNESS                        | 40
| | 17.14 | WINDING -UP                         | 40
| | 17.15 | FINANCE DOCUMENTS                   | 40
| | 17.16 | NO FORCE MAJEURE                    | 40
| | 17.17 | BUSINESS PLAN                       | 40
| | 17.18 | IMMUNITY                            | 40
| | 17.19 | JURISDICTION/GOVERNING LAW          | 41
| | 17.20 | ACCURACY OF REPRESENTATION          | 41
| | 17.21 | TIMES WHEN REPRESENTATIONS ARE MADE | 41

2

---

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|    |                       |   
|--- | --------------------- | --
|
|
|
|
|    |                       |   
|18. | INFORMATION COVENANTS | 41

| |      |                                     |   
| | ---- | ----------------------------------- | --
|
|
|
|
| |      |                                     |   
| | 18.1 | ACCOUNTS AND FINANCIAL INFORMATION  | 41
| | 18.2 | INDEBTEDNESS TO PARTICIPATING BANKS | 42
| | 18.3 | COMPLIANCE                          | 42
| | 18.5 | GENERAL                             | 44
| | 18.6 | FORM OF INFORMATION                 | 44
| | 18.7 | AUDIT AND ACCOUNTING DATES          | 44

|    |                     |   
|--- | ------------------- | --
|
|
|
|
|    |                     |   
|19. | FINANCIAL COVENANTS | 44

| |      |                     |   
| | ---- | ------------------- | --
|
|
|
|
|
| | 19.1 | FINANCIAL COVENANTS | 44
| | 19.2 | INTERPRETATION      | 45

|    |                   |   
|--- | ----------------- | --
|
|
|
|
|    |                   |   
|20. | GENERAL COVENANTS | 45

| |       |                                           |   
| | ----- | ----------------------------------------- | --
|
|
|
|
|
| | 20.1  | COVENANTS AND UNDERTAKINGS                | 45
| | 20.2  | MATERIAL LICENCES                         | 45
| | 20.3  | PARI PASSU RANKING                        | 46
| | 20.4  | SECURITY AND NEGATIVE PLEDGE              | 46
| | 20.5  | FINANCIAL INDEBTEDNESS                    | 47
| | 20.6  | MERGERS AND ACQUISITIONS                  | 48
| | 20.7  | COMPLIANCE WITH LAWS AND PAYMENT OF TAXES | 49
| | 20.8  | ACCESS                                    | 49
| | 20.9  | DISTRIBUTIONS                             | 49
| | 20.10 | SHAREHOLDINGS                             | 50
| | 20.11 | INSURANCES                                | 50
| | 20.12 | CONDUCT OF BUSINESS                       | 52
| | 20.13 | USE OF PROCEEDS                           | 52
| | 20.14 | INVESTMENTS                               | 52
| | 20.15 | CONSENTS AND AUTHORISATIONS               | 53
| | 20.16 | CONSTITUTIONAL DOCUMENTS                  | 53
| | 20.17 | MAALOT RATING                             | 53
| | 20.18 | HEDGING TRANSACTIONS                      | 53
| | 20.19 | SALE AND LEASEBACK                        | 54
| | 20.20 | LOANS AND GUARANTEES                      | 54
| | 20.21 | OPERATING LEASES                          | 54
| | 20.22 | DISCOUNTING OF RECEIVABLES                | 54
| | 20.23 | DURATION                                  | 55

3

---

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|    |         |   
|--- | ------- | --
|
|
|
|
|    |         |   
|21. | DEFAULT | 55

| |       |                                                                  |   
| | ----- | ---------------------------------------------------------------- | --
|
|
|
|
| |       |                                                                  |   
| | 21.1  | EVENTS OF DEFAULT                                                | 55
| | 21.2  | NON-PAYMENT                                                      | 55
| | 21.3  | BREACH OF OTHER OBLIGATIONS                                      | 55
| | 21.4  | MISREPRESENTATION                                                | 55
| | 21.5  | CROSS DEFAULT                                                    | 55
| | 21.6  | INSOLVENCY                                                       | 56
| | 21.7  | INSOLVENCY PROCEEDINGS AND APPOINTMENT OF RECEIVERS AND MANAGERS | 56
| | 21.8  | CREDITORS' PROCESS                                               | 56
| | 21.9  | ILLEGALITY                                                       | 56
| | 21.10 | EFFECTIVENESS OF SECURITY                                        | 57
| | 21.11 | OWNERSHIP OF THE BORROWER                                        | 57
| | 21.12 | BREACH OF A MATERIAL LICENCE OR ANY AUTHORISATION                | 57
| | 21.13 | REPUDIATION                                                      | 57
| | 21.14 | NO TRADING IN SECURITIES                                         | 57
| | 21.15 | NON-COMPLIANCE WITH ANY SECURITIES AUTHORITY                     | 57
| | 21.16 | GOVERNMENTAL INTERVENTION                                        | 58
| | 21.17 | CESSATION                                                        | 58
| | 21.18 | MATERIAL ADVERSE EFFECT                                          | 58
| | 21.19 | ACCELERATION; OTHER REMEDIES                                     | 58
| | 21.20 | DUTY TO MONITOR                                                  | 59

|    |      |   
|--- | ---- | --
|
|
|
|
|    |      |   
|22. | FEES | 59

| |      |                           |   
| | ---- | ------------------------- | --
|
|
|
|
| |      |                           |   
| | 22.1 | UP-FRONT FEE              | 59
| | 22.2 | COMMITMENT FEE            | 59
| | 22.3 | ONGOING FEES              | 59
| | 22.4 | FACILITY AGENT'S FEE      | 59
| | 22.5 | CO-ORDINATING AGENT'S FEE | 59
| | 22.6 | SECURITY TRUSTEE'S FEE    | 60
| | 22.7 | VAT                       | 60

|    |                    |   
|--- | ------------------ | --
|
|
|
|
|    |                    |   
|23. | COSTS AND EXPENSES | 60

| |      |                                                                      |   
| | ---- | -------------------------------------------------------------------- | --
| |      |                                                                      |   
|
|
|
|
| | 23.1 | INITIAL COSTS                                                        | 60
| | 23.2 | SUBSEQUENT COSTS                                                     | 60
| | 23.3 | INTERPRETATION, IMPLEMENTATION, ADMINISTRATION AND ENFORCEMENT COSTS | 60

|    |              |   
|--- | ------------ | --
|
|
|
|
|    |              |   
|24. | STAMP DUTIES | 61

|    |             |   
|--- | ----------- | --
|
|
|
|
|    |             |   
|25. | INDEMNITIES | 61

| |      |                          |   
| | ---- | ------------------------ | --
|
|
|
|
| |      |                          |   
| | 25.1 | CURRENCY INDEMNITY       | 61
| | 25.2 | BROKEN FUNDING INDEMNITY | 61
| | 25.3 | OTHER INDEMNITIES        | 62

|    |                           |   
|--- | ------------------------- | --
|
|
|
|
|    |                           |   
|26. | EVIDENCE AND CALCULATIONS | 62

| |      |                         |   
| | ---- | ----------------------- | --
|
|
|
|
| |      |                         |   
| | 26.1 | STATEMENTS AND ACCOUNTS | 62
| | 26.2 | CALCULATIONS            | 63

|    |                        |   
|--- | ---------------------- | --
|
|
|
|
|    |                        |   
|27. | ADMINISTRATIVE PARTIES | 63

| |       |                                              |   
| | ----- | -------------------------------------------- | --
|
|
|
|
| |       |                                              |   
| | 27.1  | APPOINTMENT AND DUTIES OF THE FACILITY AGENT | 63
| | 27.2  | RELATIONSHIP                                 | 64
| | 27.3  | INSTRUCTIONS TO THE FACILITY AGENT           | 64
| | 27.4  | DELEGATION                                   | 64
| | 27.5  | RESPONSIBILITY FOR DOCUMENTATION             | 64
| | 27.6  | EXONERATION                                  | 64
| | 27.7  | INFORMATION                                  | 65
| | 27.8  | THE ADMINISTRATIVE PARTIES INDIVIDUALLY      | 65
| | 27.9  | INDEMNITIES                                  | 66
| | 27.10 | COMPLIANCE                                   | 66
| | 27.11 | RESIGNATION OF AN ADMINISTRATIVE PARTY       | 66

4

---

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|    |                        |   
|--- | ---------------------- | --
|
|
|
|
|    |                        |   
|28. | AMENDMENTS AND WAIVERS | 67

| |      |                                 |   
| | ---- | ------------------------------- | --
|
|
|
|
| |      |                                 |   
| | 28.1 | PROCEDURE                       | 67
| | 28.2 | EXCEPTIONS                      | 67
| | 28.3 | WAIVERS AND REMEDIES CUMULATIVE | 68

|    |                        |   
|--- | ---------------------- | --
|
|
|
|
|    |                        |   
|29. | CHANGES TO THE PARTIES | 68

| |      |                                      |   
| | ---- | ------------------------------------ | --
|
|
|
|
| |      |                                      |   
| | 29.1 | TRANSFERS BY THE BORROWER            | 68
| | 29.2 | GUARANTORS                           | 68
| | 29.3 | REPETITION OF REPRESENTATIONS        | 69
| | 29.4 | TRANSFERS BY THE PARTICIPATING BANKS | 69

|    |         |   
|--- | ------- | --
|
|
|
|
|    |         |   
|30. | SET-OFF | 70

|    |              |   
|--- | ------------ | --
|
|
|
|
|    |              |   
|31. | SEVERABILITY | 70

|    |              |   
|--- | ------------ | --
|
|
|
|
|    |              |   
|32. | COUNTERPARTS | 71

|    |         |   
|--- | ------- | --
|
|
|
|
|    |         |   
|33. | NOTICES | 71

| |      |                       |   
| | ---- | --------------------- | --
|
|
|
|
| |      |                       |   
| | 33.1 | GIVING OF NOTICES     | 71
| | 33.2 | ADDRESSES FOR NOTICES | 71

|    |             |   
|--- | ----------- | --
|
|
|
|
|    |             |   
|34. | INFORMATION | 73

|    |                                |   
|--- | ------------------------------ | --
|
|
|
|
|    |                                |   
|35. | LANGUAGE                       | 73
|   
|36. | GOVERNING LAW AND JURISDICTION | 73
|   
|37. | WAIVER OF IMMUNITY             | 73

5

---

---



THIS FACILITY AGREEMENT is
made on the 14th day of April 2005,

# BETWEEN:

|(1) | PARTNER
COMMUNICATIONS COMPANY LTD., a limited liability company                organised and
existing under the laws of the State of Israel (the                Borrower);
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | BANK
HAPOALIM B.M., a banking corporation incorporated in the State of
               Israel(BH);
|--- | ---------------------------------------------------------------------------------------------------

|(3) | BANK
LEUMI LE-ISRAEL B.M.,a banking corporation incorporated in                the
State of Israel (BLL);
|--- | -----------------------------------------------------------------------------------------------------------

|(4) | ISRAEL
DISCOUNT BANK LTD., a banking corporation incorporated in the                State of
Israel (IDB);
|--- | ------------------------------------------------------------------------------------------------------------

|(5) | UNITED
MIZRAHI BANK LTD., a banking corporation incorporated in the State                of
Israel (UMB);
|--- | -----------------------------------------------------------------------------------------------------------

|(6) | BANK
HAPOALIM B.M., a banking corporation incorporated in the State of
               Israel, in its capacity as facility agent (the Facility
               Agent);
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(7) | BANK
LEUMI LE-ISRAEL B.M., a banking corporation incorporated in the                State
of Israel, in its capacity as co-ordinating agent (the                Co-ordinating
Agent); and
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(8) | BANK
LEUMI LE-ISRAEL B.M., a banking corporation incorporated in the                State
of Israel, in its capacity as security trustee(the                Security
Trustee).
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# WHEREAS:

|(A) | The
Lenders and UMB, together with other participating banks, have provided the
               Borrower with loan facilities pursuant to the terms of the Existing
Facility                Agreement (as defined below).
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(B) | The
Lenders, UMB and the Borrower have agreed to replace the Existing Facility
               Agreement with this Agreement, and that the Lenders and UMB continue to
make                available to the Borrower multi-currency credit facilities for the
purposes set                out in Section 3 (Purpose) below, upon and subject to the
terms and conditions                contained in this Agreement and without further
reference to the Existing                Facility Agreement.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(C) | The
Borrower wishes to accept the credit facilities upon and subject to the
               terms and conditions contained in this Agreement.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------

|(D) | Unless
terminated earlier in accordance with its terms, the Existing Facility
               Agreement shall be terminated on the Commencement Date (as defined below),
and                the Security Interests granted thereunder shall be released or amended
(as the                case may be), as agreed by the Parties.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

6

---

---



IT IS AGREEDas follows:

|1. | DEFINITIONS
AND INTERPRETATION
|-- | ------------------------------

|1.1 | Definitions
|--- | -----------

| | In
this Agreement, the following terms shall have the following meanings:
| | -------------------------------------------------------------------------

| |                   |                                                                                                                                                                   
| | ----------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Accounting Period | In relation  to any person  means any period of  approximately  3 (three)  months,  6
(six) months or 1 (one) year for which Accounts of such person are prepared.
| |                   |                                                                                                                                                                   
| | Accounts          | At any time and from time to time:                                                                                                                                

| | (a) | the latest unaudited reviewed half-yearly consolidated financial statements of
          the Borrower;
| | --- | ------------------------------------------------------------------------------------------------------

| | (b) | the latest audited consolidated annual financial statements of the Borrower;
| | --- | ----------------------------------------------------------------------------

| | (c) | the latest unaudited reviewed quarterly consolidated financial statements of the
          Borrower,
| | --- | ----------------------------------------------------------------------------------------------------

| | delivered
or required to be delivered to the Participating Banks hereunder (together with all those
notes thereto and certificates required to be attached thereto), or such of those
accounts as the context requires.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                       |                                                                                                                                                                                                                                                                                                                                                                   
| | --------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Administrative  Party | The Facility Agent, the Co-ordinating Agent and the Security Trustee.                                                                                                                                                                                                                                                                                             
| |                       |                                                                                                                                                                                                                                                                                                                                                                   
| | Advance               | The principal amount of loans advanced  hereunder by the Participating  Banks, or the
principal  amount of such advances  which are from time to time  outstanding,  as the
case may be.                                                                                                                                                                          
| |                       |                                                                                                                                                                                                                                                                                                                                                                   
| | Agreement             | This Facility Agreement.                                                                                                                                                                                                                                                                                                                                          
| |                       |                                                                                                                                                                                                                                                                                                                                                                   
| | Auditors              | The  independent  auditors  of the  Borrower  from time to time,  being  Kesselman  &
Kesselman at the date of this Agreement.                                                                                                                                                                                                                                    
| |                       |                                                                                                                                                                                                                                                                                                                                                                   
| | Authorisation         | At any  time  all  consents,  approvals,  authorisations,  concessions,  permits  and
licences (excluding the Licence), and all filings,  registrations and agreements with
any government or other regulatory  authority  necessary in order to enable the Group
to install,  establish,  maintain and operate a mobile telephone network in Israel at
such time.
| |                       |                                                                                                                                                                                                                                                                                                                                                                   
| | Availability Period   | The period from and including the Commencement Date to and including:                                                                                                                                                                                                                                                                                             
| |                       |                                                                                                                                                                                                                                                                                                                                                                   
| |                       |                                                                                                                                                                                                                                                                                                                                                                   
| |                       |                                                                                                                                                                                                                                                                                                                                                                   
| |                       |                                                                                                                                                                                                                                                                                                                                                                   
| |                       |                                                                                                                                                                                                                                                                                                                                                                   
| |                       |                                                                                                                                                                                                                                                                                                                                                                   
| |                       |                                                                                                                                                                                                                                                                                                                                                                   

| | (a) | with
respect to Facility A,:
| | --- | ----------------------------

| | (i) | unless
the Option has been exercised,the date falling one day prior to the           fifth
anniversary of the Commencement Date;
| | --- | --------------------------------------------------------------------------------------------------------------------------------

7

---

---



| | (ii) | if
the Option is exercised, 31st August 2008; and
| | ---- | -------------------------------------------------

| | (b) | with
respect to Facility B, the Final Maturity Date.
| | --- | ----------------------------------------------------

| | Available Currency | US Dollars and NIS.
| | ------------------ | -------------------

| | Bank of Israel | The central bank of the State of Israel.
| | -------------- | ----------------------------------------

| | Breach | Any
event,  act or condition  which,  with the  delivery by the  Facility  Agent of a
                                   notice declaring that an Event of Default has
occurred,  would constitute an Event of                                    Default.
| | ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Breach Margin | The margin agreed between the Participating Banks and the Borrower,  for the
purposes                                    of  calculating  the breach rate of interest
in  accordance  with Section 9.3 (Breach                                    Interest), as
set out in the Margin Letter.
| | ------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Business Day | (a) | with  respect to amounts  denominated  in NIS, a day (other than a
Saturday)                                             on which banks are open for
business in Tel-Aviv; and
| | ------------ | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | with respect to amounts denominated in US Dollars, a day (other than a Saturday
          or a Sunday) on which banks are open for business in Tel-Aviv and New York.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Business Plan | The revised business plan of the Borrower (including long term management
 forecasts)                                    dated October 2004 and provided by the
Borrower to the Participating Banks.
| | ------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Capital Expenditure | Any  expenditure  which  should be  treated  as capital  expenditure  in the
 audited                                    Accounts of the Borrower in accordance with
US GAAP.
| | ------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | CommencementDate | The date on which all of the  conditions  precedent to the first  Advance (as set
out                                    in Section 4 (Conditions  Precedent) have been
fulfilled to the  satisfaction  of, or                                    waived in
 writing  by, the  Facility  Agent  (acting  upon the  instructions  of the
                                   Majority Lenders) or, as the case may be, the Security
Trustee.
| | ---------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Commitment | With
respect to each  Lender,  the  principal  amount which each Lender is obliged to
                                   commit to  Facility  A and  Facility  B,  being its
 Facility  A  Commitment  and its                                    Facility B
Commitment respectively.
| | ---------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Discharge Date | The date on which  all  amounts  owing  to the  Finance  Parties  under  the
 Finance                                    Documents and all Permitted  Financial
 Indebtedness owing to the Participating Banks                                    have
been fully and irrevocably paid or discharged.
| | -------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Dollar Amount | The  US  Dollar  equivalent  of  a  NIS  amount,  calculated  on  the  basis
 of  the                                    Representative Rate at such time.
| | ------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------

| | Drawdown Date | In relation to any Advance,  the date on which the Advance is actually made or
deemed                                    to be made in accordance with the terms of this
Agreement.
| | ------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

8

---

---



| | EBITDA | In
respect of any Ratio Period:
| | ------ | -------------------------------

| | (1) | the sum of the following, all as appearing in the Borrowers Accounts for
          such Ratio Period:
| | --- | ------------------------------------------------------------------------------------------------------

| | (a) | the
net income of the Borrower before extraordinary items; provided that, for           the
removal of doubt:
| | --- | -------------------------------------------------------------------------------------------------------------

| | (i) | all
expenses other than Capital Expenditure shall be costs for the purposes of
          determining EBITDA; and
| | --- | ----------------------------------------------------------------------------------------------------------------

| | (ii) | Capital
Expenditure as referred to above does not include SAC;
| | ---- | --------------------------------------------------------------

| | (b) | the
amount of Taxes set against the net profits of the Borrower in the Accounts           and
(without double counting) any provision by the Borrower for Taxes;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | any
amortisation and depreciation reflected in such Accounts;
| | --- | -------------------------------------------------------------

| | (d) | any
Net Financial Expenses,
| | --- | ---------------------------

| | less: | 
| | ----- | 

| | (2) | any non-cash profits included in the Borrowers Accounts in respect of such
          Ratio Period.
| | --- | ---------------------------------------------------------------------------------------------------

| | For
the purposes of the aforegoing:
| | -----------------------------------

| | Net
Financial Expenses means, for any Ratio Period, financial expenses, net for
such Ratio Period, as appearing in the Accounts; and
| | --------------------------------------------------------------------------------------------------------------------------------------

| | SACmeans,
for any Ratio Period, the Borrowers subscriber acquisition costs paid or accrued
during such Ratio Period, being principally the sum of:
| | -----------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | the costs paid or accrued during such Ratio Period of acquisition by the Borrower of
handsets and car kits, less revenues received or receivable by the Borrower during such
Ratio Period from the sale of such handsets and car kits; and
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | commissions paid or accrued to dealers, distributors and sales personnel during such Ratio
Period in respect of the sale of handsets and car kits.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------

| | Equity | In
respect of any Ratio Period,  total shareholders equity as at the end of the Ratio
                                   Period, as appearing in the Accounts.
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------

9

---

---



| | Event of Default | As defined in Section 21 (Default).
| | ---------------- | -----------------------------------

| | Existing Facility  Agreement | The  facility  agreement  dated 13th  August,  1998 and amended and
 restated on 31st                                             December, 2002 between,
amongst others, the Borrower, the Lenders, and UMB.
| | ---------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Existing Outstanding Amounts | With respect to each Lender,  the aggregate Original Dollar Amount of all
outstanding                                           amounts owed by the  Borrower to
such Lender on the  Commencement  Date,  pursuant to
                                          the Existing Facility Agreement,  as
conclusively set out in the Existing Outstanding
                                          Amount Certificate.
| | ---------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Existing OutstandingAmount Certificate | A certificate  with respect to each Lender,  substantially  in the
form of Schedule 4                                                     (Existing
 Outstanding  Amount  Certificate),  to be  provided  by each Lender to the
                                                    Borrower and confirmed by the
Borrower,  on the Commencement Date, in accordance with
                                                    Section 4.1 (Conditions Precedent).
| | -------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Facilities | Facility
A and Facility B to be made  available to the  Borrower in  accordance  with
                                   the terms of this Agreement, and the UMB Facility.
| | ---------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Facility A | The  multicurrency  facility granted to the Borrower  pursuant to Section
2.1(a) (The                                    Facilities).
| | ---------- | -------------------------------------------------------------------------------------------------------------------------------------

| | Facility A Advance | Any Advance made under Facility A.
| | ------------------ | ----------------------------------

| | Facility A Commitment | With respect to each Lender, such Lender's Commitment under Facility A,
being:
| | --------------------- | ------------------------------------------------------------------------------

| | (a) | unless the Option is exercised, its Relevant Percentage of the amounts set out
          in Schedule 2, Part I (Facility A Repayment Schedule),or
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | if the Option is exercised, its Relevant Percentage of the amounts set out in
          Schedule 2, Part II (Facility A Repayment Schedule),
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------

| | in
each case, as reduced from time to time.
| | -------------------------------------------

| | Facility A Outstandings | With respect to each Lender,  the  aggregate  of the Original  Dollar
 Amounts of all                                    outstanding Facility A Advances
provided by such Lender, from time to time.
| | ----------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Facility B | The  revolving  multicurrency  facility  granted to the Borrower  pursuant
to Section                                    2.1(b) (The Facilities).
| | ---------- | -------------------------------------------------------------------------------------------------------------------------------------------------

| | Facility B Advance | Any Advance made under Facility B.
| | ------------------ | ----------------------------------

10

---

---



| | Facility B Commitment | With respect to each Lender,  such Lender's  Commitment  under  Facility B,
being its                                    Relevant  Percentage of the total commitment
at such time, which, on the date hereof,                                    shall be
 US$100,000,000  (one hundred  million United States  Dollars) to the extent
                                   not cancelled, transferred or reduced under this
Agreement.
| | --------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Facility B Outstandings | With respect to each Lender,  the aggregate of the Dollar Amounts of all
 outstanding                                    Facility B Advances provided by such
Lender, from time to time.
| | ----------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Facility Office | The office  notified by a Lender to the Borrower  from time to time, by not less
than                                    five (5) Business  Days' notice,  as the office
 through which it will perform all or                                    any of its
obligations under this Agreement.
| | --------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Fee Letter | Each Fee Letter dated on or prior to the date of this Agreement  entered
into between                                    the Borrower and each of the
Administrative Parties and Lenders in relation hereto.
| | ---------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Final Maturity Date | (a) | Unless the Option is exercised,  the sixth  anniversary of the
Commencement                                              Date; and
| | ------------------- | --- | ----------------------------------------------------------------------------------------------------------------------------------

| | (b) | if
the Option is exercised, 1st September, 2009.
| | --- | ------------------------------------------------

| | Finance Documents | Each of:
| | ----------------- | --------

| | (a) | this Agreement;
| | --- | ---------------

| | (b) | each Security Document;
| | --- | -----------------------

| | (c) | each Fee Letter;
| | --- | ----------------

| | (d) | the Margin Letter;
| | --- | ------------------

| | (e) | the Intercreditor Agreement; and
| | --- | --------------------------------

| | (f) | any other document designated as such by the Participating Banks and the
          Borrower.
| | --- | --------------------------------------------------------------------------------------------

| | Finance Parties | Each of the Participating Banks and the Administrative Parties.
| | --------------- | ---------------------------------------------------------------

| | Financial Indebtedness | Any indebtedness in respect of:
| | ---------------------- | -------------------------------

| | (a) | moneys borrowed or debit balances at banks and other financial institutions;
| | --- | ----------------------------------------------------------------------------

| | (b) | any debenture, bond, note, loan stock or other security;
| | --- | --------------------------------------------------------

| | (c) | any acceptance or documentary credit;
| | --- | -------------------------------------

| | (d) | receivables sold or discounted (otherwise than on a non-recourse basis) to the
          extent only that any claim has been made against the Borrower with respect to
          such receivables;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

11

---

---



| | (e) | the acquisition cost of any asset to the extent payable more than 360 days after
          the time of acquisition or possession by the party liable where the deferred
          payment is arranged primarily as a method of raising finance or financing the
          acquisition of that asset;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) | any lease entered into primarily as a method of raising finance or financing the
          acquisition of the asset leased;
| | --- | ---------------------------------------------------------------------------------------------------------------------------

| | (g) | the risk component of any Forex Transactions, interest swap, cap or collar
          arrangement or any other derivative instrument as determined in accordance with
          any applicable rule of practice of the Bank of Israel or otherwise as determined
          by the Participating Banks in accordance with customary banking practice;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (h) | any guarantee, indemnity or similar assurance against financial loss of any
          person; or
| | --- | ------------------------------------------------------------------------------------------------

| | (i) | any amount raised under any transaction other than those listed in paragraphs
          (a) to (h) above, having the commercial effect of a borrowing or raising of
          money.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | provided
that in computing an amount of Financial Indebtedness:
| | ---------------------------------------------------------------

| | (I) | in respect of paragraph (f) only the liability for future payments under
          the finance lease as determined in accordance with US GAAP shall be included;
          and
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (II) | any item falling within paragraphs (h) and (i) shall be included only to
          the extent that the same is required by US GAAP to be quantified in the Accounts
          of the Group, or in any notes to those Accounts, were any then to be prepared.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Financing Costs | (a) | interest,  fees,  commissions  and costs payable by the Borrower  under
this                                             Agreement;
| | --------------- | --- | -----------------------------------------------------------------------------------------------------------------------------------

| | (b) | amounts ascertained as being payable by the Borrower under Section 12 (Taxes),
          Section 13 (Market Disruption), Section 14 (Increased Costs), Section 23 (Costs
          and Expenses), Section 24 (Stamp Duties) and Section 25 (Indemnities) of this
          Agreement; and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | any Taxes payable by the Borrower in respect of the above,
| | --- | ----------------------------------------------------------

| | but
excluding Financing Principal.
| | ----------------------------------

| | Financing Principal | Principal amounts outstanding under this Agreement from time to time.
| | ------------------- | ---------------------------------------------------------------------

12

---

---



| | Floating Charge | The unlimited amended and restated  debenture  floating charge agreement
 pursuant to                                    which all of the Borrower's debts and
obligations to the Participating  Banks and the                                    other
Finance  Parties are or shall be secured in favour of the Security  Trustee (on
                                   behalf of the Finance Parties).
| | --------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Forex Transaction | Any foreign exchange  transaction  (excluding "spot"  transactions i.e.
 transactions                                    with a settlement period not exceeding
48 (forty eight) hours),  including any future                                    or
 forward  transaction,  in a foreign  currency  or in the  basket  of  currencies,
                                   currency swap transaction,  cross-currency swap
transaction, currency option or other                                    similar
 transaction  (including any option with respect  thereto and any combination
                                   in respect thereof).
| | ----------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Founder Shareholders | (a) | Hutchison  Telecommunications  International Limited, a company incorporated
                                            in the Cayman Islands;
| | -------------------- | --- | -----------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Elbit Limited, a company incorporated in Israel with registered number
          52-002750-9;
| | --- | ---------------------------------------------------------------------------------------------

| | (c) | Eurocom Communications Limited, a company incorporated in Israel with registered
          number 51-082316-4;
| | --- | --------------------------------------------------------------------------------------------------------------

| | (d) | Matav-Cable Systems Media Limited, a company incorporated in Israel with
          registered number 52-004007-2; and
| | --- | ---------------------------------------------------------------------------------------------------------------------

| | (e) | Polar Communications Limited, a company incorporated in Israel with registered
          number 52-004442-1.
| | --- | ------------------------------------------------------------------------------------------------------------

| | Group | The
Borrower and each of its Subsidiaries.
| | ----- | ------------------------------------------

| | Guarantee | The
 guarantee to be entered  into by each  Guarantor,  substantially  in the form of
                                   Schedule 6 (Form of Guarantee), in accordance with
Section 29.2 (Guarantors).
| | --------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Guarantor | Each
Wholly-owned  Subsidiary of the Borrower which is a Guarantor in accordance with
                                   Section 29.2 (Guarantors) at the relevant time.
| | --------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Guarantor Floating Charge | (a) | Each  first-ranking  floating charge  agreement to be entered into
in favour                                              of  the  Security  Trustee  (on
 behalf  of the  Finance  Parties)  by  each
                                            Guarantor,  substantially  in the  form of
 Schedule  8 (Form  of  Guarantor                                             Floating
Charge), in accordance with Section 29.2 (Guarantors); and
| | ------------------------- | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | with respect to Partner Future Communications 2000 Ltd., the amended and
          restated debenture floating charge agreement.
| | --- | --------------------------------------------------------------------------------------------------------------------------------

| | Hedging Transactions | Any:
| | -------------------- | ----

| | (a) | interest rate swap transaction, basis swap, forward rate transaction, commodity
          swap, commodity option, equity or equity index swap, equity or equity index
          option, interest rate option, cap transaction, floor transaction, collar
          transaction; or
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

13

---

---



| | (b) | Forex
Transaction,
| | --- | ------------------

| | or
other similar transactions (including any option with respect thereto and any combination
in respect thereof).
| | -----------------------------------------------------------------------------------------------------------------

| | IDB Performance Bond | The  performance  guarantee in the maximum amount of NIS,  equal,  in accordance
with                                    the Representative  Rate known on the date of
actual payment,  to US $10,000,000 (ten                                    million
 United  States  Dollars)  issued  or to be  issued  by IDB in  favour of the
                                   Ministry, at the request of the Borrower.
| | -------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | IDB Performance Bond Counter Indemnity | An  agreement  entered  into or to be  entered  into  between
 IDB and the  Borrower,                                                 pursuant to which
the Borrower  undertakes to indemnify IDB in respect of any amounts
                                   payable by IDB, under or in connection with the IDB
Performance Bond.
| | -------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Index | The
consumer  price index (also know as the cost of living  index),  including  fruit
                                   and  vegetables,  published by the Central  Bureau of
Statistics in Israel  including                                    the same index even if
published by any other official body or institution.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Initial Availability Period | The period from the Commencement  Date to and including the first  anniversary
of the                              date of this Agreement.
| | --------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------

| | Intercreditor Agreement | The agreement dated on or about the date hereof between the Lenders and UMB.
| | ----------------------- | ----------------------------------------------------------------------------

| | Interest Due Date | The last day of any Interest Period.
| | ----------------- | ------------------------------------

| | Interest Period | As determined in accordance with Section 9 (Interest & Interest Periods).
| | --------------- | -------------------------------------------------------------------------

| | Lenders | BH,
BLL, IDB,  their  successors  and assigns and any other  transferee in accordance
                                   with Section 29.4  (Transfers by the  Participating
 Banks),  and, unless the context                                    otherwise  requires,
 with respect to IDB,  references  to Lenders shall be deemed to
                                   include  Israel  Discount Bank Ltd., in its capacity
as the  counterparty  to the IDB                                    Performance Bond
Counter Indemnity.
| | ------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Lending Rate | The rate of interest prior to the addition of a margin,  which shall be
determined by                                    each  Participating  Bank for its
 customers  for the  purpose  of  granting  credits
                                   (whether they bear interest at a fixed or variable
 rate),  in the same amount,  type                                    and with the same
duration as the Advance  requested,  on the date of determining the
                                   interest  rate for the requested  Advance (the
 "Determining  Date").  In the case of                                    Advances
 bearing  interest at a variable  rate, the rate of interest shall be stated
                                   as a fixed  percentage above or below any base rate of
interest which varies over the                                    period  of such
 Advance  (e.g.  "Prime  -" or  "Libor  +"),  the rate of such  fixed
                                   addition or deduction  being  determined on the
 Determining  Date in accordance with                                    the above
 principles  and shall  not vary  during  the  period of  suchAdvance.  For
                                   example: if the margin is 1% p.a. and on the
Determining Date a Participating  Bank's                                    Lending Rate
is LIBOR + 0.5% p.a.,  then the interest  rate for the entire  period of
                                   the Advance  shall be LIBOR (as such rate  varies from
time to time) + 1.5% p.a.,  in                                    effect from time to
time.
| | ------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

14

---

---



| | Licence | The
licence dated 7 April,  1998 (and  terminating on 1 February 2022) granted to the
                                   Borrower by the Ministry for  providing  mobile radio
 telephone  services  using the                                    cellular method, as
has been, and in the future may be, amended from time to time.
| | ------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Linkage Date | The later of the day upon which any payment on account of principal  and/or
 interest                                    or any other amount due to be paid in NIS,
is  expressed to be payable in  accordance                                    with the
terms of this Agreement or is actually paid hereunder.
| | ------------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Linkage Differentials | Any amount to be added to the  principal  of, or  interest in respect of, any Advance
                                   denominated in NIS as a result of any increase in the
Index.
| | --------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | MajorityLenders | The Facility Agent and the Co-ordinating Agent.
| | --------------- | -----------------------------------------------

| | Margin | The
margin to be added to the  Lending  Rate,  as agreed  between  the  Participating
                                   Banks and the Borrower, and set out in the Margin
Letter.
| | ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Margin Letter | The letter dated on or prior to the date of this  Agreement  entered into
between the                                    Borrower and the Participating  Banks,
 specifying the Margin and Breach Margin to be                                    added
to each  Participating  Bank's Lending Rate for the purposes of determining the
                                   interest rate applicable to the Facilities under this
Agreement.
| | ------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Material Adverse Effect | Any effect which is or is likely to be materially adverse to:
| | ----------------------- | -------------------------------------------------------------

| | (a) | the ability of any Obligor to perform its obligations in any material respect
          under any of the Finance Documents to which it is a party; or
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | the business or financial condition of the Group taken as a whole.
| | --- | ------------------------------------------------------------------

| | Material
Licence | The Licence and each other  licence  issued by the Ministry to the  Borrower
 that is                                    material to the business of the Borrower.
| | ---------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | MaterialSubsidiary | Any Subsidiary of the Borrower in which  investments made by the Borrower
 constitute                                    more than 5% of the consolidated assets of
the Borrower.
| | ------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Ministry | The
Ministry of Communications of the Israeli Government.
| | -------- | ---------------------------------------------------------

| | Net Proceeds | The aggregate value of  consideration  received by any Obligor or Obligors in
respect                                    of a sale,  transfer,  loan or other  disposal
of assets  (including  shares in other                                    Group  members)
 from an Obligor  to any third  party  which is not an Obligor  after
                                   deduction of:
| | ------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

15

---

---



| | (a) | all amounts paid or provided for or on account of Taxes applicable to, or to any
          gain resulting from, the disposal or the discharge of any liability secured on
          the relevant assets; and
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | all costs, fees and expenses properly incurred by continuing members of the
          Group in arranging and effecting that disposal.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------

| | New Index | The last known Index on the relevant Linkage Date.
| | --------- | --------------------------------------------------

| | NIS | New
 Israeli  shekels,  being  the  lawful  currency  of the  State of  Israel or any
                                   successor currency.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------

| | NIS Equivalent | The  NIS  equivalent  of  a  US  Dollar  amount,  calculated  on  the  basis
 of  the                                    Representative Rate last published at such
time.
| | -------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Obligor | The
Borrower or a Guarantor.
| | ------- | ----------------------------

| | Option | The
 Borrower's  right to request a reduction in the aggregate  Facility A Commitment
                                   as set forth in Section 2.4 (The Option) of this
Agreement.
| | ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Original Index | In respect of any  Advance  and all  interest  thereon,  the last known  Index
on the                                    Drawdown Date of such Advance.
| | -------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | Original Dollar Amount | (a) | For an Advance denominated in U.S. Dollars, its amount; or
| | ---------------------- | --- | ----------------------------------------------------------

| | (b) | For an Advance denominated in NIS, the equivalent in U.S. Dollars calculated on
          the basis of the Representative Rate published on the last business day prior to
          the Drawdown Date for that Advance.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ParticipatingBanks | The Lenders and UMB.
| | ------------------ | --------------------

| | Party | A
party to this Agreement.
| | ----- | --------------------------

| | Permitted Financial Indebtedness | As defined in Section 20.5(b) (Financial Indebtedness) below.
| | -------------------------------- | -------------------------------------------------------------

| | Permitted Security Interests | As defined in Section 20.4(c) (Security and Negative Pledge) below.
| | ---------------------------- | -------------------------------------------------------------------

| | Permitted Investments | As defined in Section 20.14(b) (Investments) below.
| | --------------------- | ---------------------------------------------------

16

---

---



| | Potential Default | Any event,  act or condition  which,  with the lapse of any time period  specified
in                                    Section  21  (Default)  with  respect to such
 event,  would  constitute  an Event of                                    Default.
| | ----------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Quarter | Each
 period  commencing  on 1st  January,  1st April,  1st July and 1st  October and
                                   ending   on  the   next   following   31st March,
  30th June,   30th September   and                                    31st December,
respectively.
| | ------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Ratio Period | Each period of 6 (six)  calendar  months  ending on June 30,  and December
31, during                                    the period of this Agreement.
| | ------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------

| | Relevant Percentage | With  respect to each  Lender,  the  percentage  of the  aggregate  of the Facility
A                                    Commitment and the Facility B Commitment  that,
 subject to Section  5.4(b)  (Lenders                                    obligations to
fund Advances) and Section 5.5(a) (Relevant Percentages),  each Lender
                                   is obliged  to commit to  Facility A and  Facility  B
 respectively,  as set forth in                                    Schedule 1 (Relevant
Percentages) against the name of each Lender.
| | ------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Repayment Date | The date  specified  by the  Borrower in each  Request,  in  accordance  with
Section                                    5.2(f)  (Requests and Advances)  below,  being
the date by which the Borrower  shall,                                    subject to the
terms of this Agreement, repay the relevant Advance in full.
| | -------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | RepresentativeRate | With  respect  to US  Dollars,  the  representative  rate of  exchange  of NIS and
US                                    Dollars,  last published by the Bank of Israel
immediately prior to the relevant date                                    of  payment  or
 calculation  (as the case may be) and,  if the Bank of Israel  shall
                                   cease to publish a  representative  rate,  then any
other rate of exchange of the NIS                                    and US Dollars,
 officially  published  which  comes in place of such  representative
                                   rate,  last  published   immediately  prior  to  the
 relevant  date  of  payment  or                                    calculation  (as the
case may be) and in the absence of any such official rate,  then
                                   the average of the selling and buying  rates of
exchange of US Dollars,  for NIS (for                                    cheques and
 remittances)  prevailing  at the  Facility  Agent at the end of the last
                                   Business Day prior to the relevant  date of payment or
 calculation  (as the case may                                    be).
| | ------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Request | A
request for the making of an Advance (other than a UMB Advance) in accordance  with
                                   Section 5.2 (Requests and Advances)  substantially in
the form of Schedule 5 (Form of                                    Request).
| | ------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Security Documents | Each of the following:
| | ------------------ | ----------------------

| | (a) | Floating Charge;
| | --- | ----------------

| | (b) | Guarantor Floating Charge
| | --- | -------------------------

| | (c) | Subsidiary Share Pledge; and
| | --- | ----------------------------

| | (d) | any other document or instrument evidencing, creating, perfecting or continuing
          the perfection of any Security Interest over any asset of the Borrower or a
          Subsidiary of the Borrower, entered into in accordance with this Agreement.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

17

---

---



| | Security Interest | Any mortgage,  pledge, lien, charge,  assignment,  hypothecation or security
interest                                    or any other agreement or arrangement having
the effect of conferring security.
| | ----------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Subsidiary | A
subsidiary of a company or corporation means any company or corporation:
| | ---------- | --------------------------------------------------------------------------

| | (a) | which is controlled, directly or indirectly, by the first-mentioned company or
          corporation;
| | --- | -----------------------------------------------------------------------------------------------------

| | (b) | at least half the issued share capital of which is beneficially owned, directly
          or indirectly, by the first-mentioned company or corporation; or
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | which is a subsidiary of another subsidiary of the first-mentioned company or
          corporation
| | --- | ---------------------------------------------------------------------------------------------------

| | and,
for these purposes, a company or corporation shall be treated as being controlled by
another if that other company or corporation is able to direct its affairs and/or to
control the composition of its board of directors or equivalent body.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Subsidiary Share Pledge | (a) | Each  first-ranking  share  pledge  agreement  substantially  in the
form of                                             Schedule 7 (Form of  Subsidiary
 Share  Pledge),  in favour of the  Security
                                            Trustee (on behalf of the  Finance  Parties),
 in  accordance  with  Section                                             20.14
(Investments) or Section 29.2 (Guarantors); and
| | ----------------------- | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | with respect to the Borrowers shares held in Partner Future Communications
          2000 Ltd., the amended and restated first ranking share pledge agreement.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Tax | All
 present  and  future  income,  value  added and other  taxes,  levies,  imposts,
                                   deductions,  charges and withholdings in the nature of
taxes whatsoever together with                                    interest  thereon and
penalties with respect  thereto,  if any, and any payments made
                                   on or in respect thereof.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Total Assets | The total assets of the Borrower from time to time, as appearing in the
Accounts.
| | ------------ | ---------------------------------------------------------------------------------

| | Total Commitment | With respect to each Lender,  the aggregate  amount of its Facility A Commitment
 and                                    its Facility B Commitment.
| | ---------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------

| | Total Debt | The aggregate of the amounts  referred to in paragraphs (a), (b), (d), (e)
and (i) of                                    the definition of Financial Indebtedness,
from time to time.
| | ---------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Total Outstandings | The aggregate of:
| | ------------------ | -----------------

| | (i) | the
Facility A Outstandings;
| | --- | ----------------------------

| | (i) | the
Facility B Outstandings; and
| | --- | --------------------------------

18

---

---



| | (ii) | the
UMB Outstandings,
| | ---- | ---------------------

| | from
time to time.
| | ------------------

| | UMB Advance | The Advance  deemed to have been made by UMB on the  Commencement  Date in
accordance                                    with  Section 5.3 (Deemed  Advances)  in
the amount of the UMB  Outstandings  on that                                    date.
| | ----------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | UMB Discharge Date | The date on which all amounts  outstanding under the UMB Facility have been
fully and                                    irrevocably paid or discharged.
| | ------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------

| | UMB Facility | The loan  facility  granted to the Borrower by UMB pursuant to the Existing
 Facility                                    Agreement.
| | ------------ | -----------------------------------------------------------------------------------------------------------------------------------

| | UMBOutstandings | The amount outstanding of the UMB Advance, from time to time.
| | --------------- | -------------------------------------------------------------

| | UMB Repayment Schedule | The repayment  schedule for all UMB Outstandings,  as set out in Schedule 2,
Part III                                    (UMB Repayment Schedule) of this Agreement.
| | ---------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | US GAAP | Generally accepted accounting principles in the United States of America.
| | ------- | -------------------------------------------------------------------------

| | Wholly-owned Subsidiary | A (directly or indirectly) wholly-owned Subsidiary of the Borrower.
| | ----------------------- | -------------------------------------------------------------------

|1.2 | Accounts
|--- | --------

|(a) | All
accounting expressions which are not otherwise defined herein shall be
          construed in accordance with US GAAP.
|--- | --------------------------------------------------------------------------------------------------------------------------

|(b) | Each
of the accounting terms used in this Agreement for any Ratio Period, shall           be
determined from the Accounts of the Borrower for the period of 6 (six) months
          ending on the last day of such Ratio Period and delivered pursuant to this
          Agreement (adjusted to the extent necessary to determine compliance with
Section           19 (Financial Covenants)), or if not included in the Accounts, shall be
          determined from a certificate signed by the Auditors delivered to the Facility
          Agent together with the Accounts.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | All
of the accounting terms herein shall be expressed in NIS (and if stated in
          another currency, the NIS Equivalent) unless the context otherwise requires.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.3 | Interpretation
|--- | --------------

| | In
this Agreement, unless the contrary intention appears, a reference to:
| | -------------------------------------------------------------------------

| | (a) | amendment includes
a supplement, notation or re-enactment and                amended is
to be construed accordingly;
| | --- | ------------------------------------------------------------------------------------------------------------------------

| | assetsincludes
every kind of property, asset, interest, revenue or right of every description, including
any present, future or contingent right to any revenues;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

19

---

---



| | controlmeans
the power to direct the management and policies of an entity, whether through the
ownership of voting capital, by contract or otherwise;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | a
month is a reference to a period starting on one day in a calendar
month and ending on the day before the numerically corresponding day in the next calendar
month, provided that:
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | if
such period started on the last Business Day in a calendar month, or if           there
is no such numerically corresponding day, such period shall end on the           last
Business Day in the relevant calendar month; and
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | if
such numerically corresponding day is not a Business Day, such period shall           end
on the next following Business Day in the same calendar month or if there is           no
such Business Day, such period shall end on the preceding Business Day;
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (and
monthly shall be construed accordingly);
| | -----------------------------------------------

| | a
person includes any person, firm, company, corporation, partnership,
association, government, state, Agency or other entity or one or more of them;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | a
regulation includes any regulation, rule, requirement, official
directive, request or guideline (whether general or specific) and whether or not having
the force of law of or issued by any authority of any kind; and
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | a
provision of law is a reference to that provision as amended or re-enacted;
| | --- | -----------------------------------------------------------------------------

| | (c) | the
Table of Contents to and the headings in this Agreement shall not affect the
               interpretation of this Agreement and all references to Sections,
sub-clauses, or                Schedules are to Sections and sub-clauses of, and
Schedules to, this Agreement;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | words
and defined terms denoting the singular number include the plural and vice
               versa;
| | --- | ------------------------------------------------------------------------------------------------------

| | (e) | references
to, or to a provision of, a document are references to it as amended                or
supplemented before or after the date of this Agreement but where this
               Agreement requires the prior consent of the Lender or the Borrower in
connection                with any such amendment or supplement, this sub-clause shall
not affect such                requirement;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) | subjectto
the terms of this Agreement, any reference in this Agreement                to the Lender
or the Borrower shall include their respective successors and                assigns;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g) | a
time of day is a reference to Tel-Aviv time; and
| | --- | --------------------------------------------------

| | (h) | the
Schedules form an integral part of this Agreement.
| | --- | ------------------------------------------------------

|1.4 | Replacement
of the Existing Facility Agreement
|--- | ----------------------------------------------

| | With
effect from the Commencement Date:
| | ---------------------------------------

20

---

---



| | (a) | the
Existing Facility Agreement will be replaced in its entirety by the terms
               and conditions set out in this Agreement, and, accordingly, the rights and
               obligations of the Parties under the Existing Facility Agreement will be
               governed by, and construed solely in accordance with this Agreement.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | the
Parties acknowledge that certain amounts borrowed under the Existing
               Facility Agreement are to be deemed repaid and simultaneously reborrowed
out of                Advances made pursuant to this Agreement without the incurrence by
the Borrower                of any fees or indemnities.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | THE
FACILITIES
|-- | --------------

|2.1 | Facility
A and Facility B
|--- | -------------------------

| | Subject
to the terms of this Agreement, the Lenders agree to make available to the Borrower, with
effect from the Commencement Date:
| | ------------------------------------------------------------------------------------------------------------------------------------

| | (a) | a
multicurrency credit facility in an aggregate amount equal to the aggregate of
               the Facility A Commitments (Facility A); and
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | a
multicurrency revolving credit facility in an aggregate amount equal to the
               aggregate of the Facility B Commitments (Facility B).
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------

|2.2 | The
UMB Facility
|--- | ----------------

| | The
Parties acknowledge that UMB provided the UMB Facility to the Borrower in accordance with
the terms of the Existing Facility Agreement. With effect from the Commencement Date, the
UMB Facility shall be governed solely by the relevant terms and conditions set forth in
this Agreement. As at the date of this Agreement, the UMB Outstandings are in the amount
of 109,974,008.40 NIS.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2.3 | Rights
and obligations of Finance Parties
|--- | -----------------------------------------

| | Unless
otherwise agreed by all the Finance Parties:
| | ---------------------------------------------------

| | (a) | the
obligations of a Finance Party under the Finance Documents are several;
| | --- | ---------------------------------------------------------------------------

| | (b) | failure
by a Finance Party to perform its obligations does not affect the
               obligations of any other Party under the Finance Documents;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | no
Finance Party is responsible for the obligations of any other Finance Party
               under the Finance Documents;
| | --- | --------------------------------------------------------------------------------------------------------------------------

| | (d) | the
rights of a Finance Party under the Finance Documents are separate and
               independent rights;
| | --- | -------------------------------------------------------------------------------------------------------------

| | (e) | a
debt arising under the Finance Documents to a Finance Party is a separate and
               independent debt; and
| | --- | --------------------------------------------------------------------------------------------------------------------

| | (f) | a
Finance Party may, except as otherwise stated in the Finance Documents,
               separately enforce its rights under the Finance Documents.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------

21

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|2.4 | The
Option
|--- | ----------

| | (a) | Notwithstanding
Section 28 (Amendments and Waivers) of this Agreement, the                Borrower may,
at any time prior to 1st September, 2005, by delivery of                written
notice to the Facility Agent (the Option Notice)
               request a reduction in the aggregate Facility A Commitment from
$425,000,000                (four hundred and twenty-five million U.S. Dollars) to
$150,000,000 (one hundred                and fifty million U.S. Dollars).
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Upon
receipt by the Facility Agent of the Option Notice, the Facility Agent
               shall notify the Lenders that the Borrower has exercised the Option and,
subject                to the payment by the Borrower to the Lenders of all accrued
commitment fees on                the unutilised amount of the Facility A Commitment that
is being cancelled, the                Facility A Commitment shall automatically be
reduced and all other definitions                and provisions of this Agreement that
are expressed to be amended upon the                exercise of the Option, shall
automatically be amended at such time.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | PURPOSE
|-- | -------

|3.1 | Purpose
|--- | -------

| | The
Borrower shall use all amounts borrowed under the Facilities wholly and exclusively:
| | ----------------------------------------------------------------------------------------

| | (a) | first,
to refinance all amounts outstanding under the Existing Facility                Agreement
(other than the Existing Outstanding Amounts and the UMB                Outstandings);
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | second,
for any one or more of the following purposes:
| | --- | ------------------------------------------------------

| | (i) | to
repurchase outstanding ordinary shares of the Borrower;
| | --- | ----------------------------------------------------------

| | (ii) | to
finance the distribution of dividends (subject to terms and conditions set           out
in Section 20.9 (Distributions) below);
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------

| | (iii) | working
capital purposes; and
| | ----- | -----------------------------

| | (iv) | in
the case of Facility A only, to refinance the outstanding debentures of the
          Borrower.
| | ---- | --------------------------------------------------------------------------------------------------

|3.2 | No
Duty to Monitor
|--- | ------------------

| | Without
affecting the obligations of the Borrower in any way, no Finance Party owes a duty to any
person to verify or monitor the purpose for which, or the person to whom, sums so
advanced are actually paid.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | CONDITIONS
PRECEDENT
|-- | --------------------

|4.1 | Documentary
conditions precedent
|--- | --------------------------------

| | The
first Request may not be given until the Facility Agent (acting upon the instructions of
the Majority Lenders) has notified the Borrower that it or, as the case may be, the
Security Trustee, has received all of the documents and evidence set out in Schedule 3,
Part I (Condition Precedent Documents) in form and substance satisfactory to it.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

22

---

---



|4.2 | Further
Conditions Precedent
|--- | ----------------------------

| | The
obligation of any Lender to make any Advance to the Borrower is subject to the further
conditions precedent that both on the date of the Request and on the Drawdown Date for
such Advance:
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | no
Potential Default, Breach or Event of Default shall have occurred and be
               continuing or may result from the making of the requested Advance;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | those
representations and warranties of the Borrower hereunder which are to be
               repeated on the date of delivery of each Request, in accordance with
Section                17.21 (Times when Representations are made) below, shall be true
and correct as                if each such representation and warranty was made as of the
date of the                requested Advance;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | the
requested Advance would not cause such Lenders Facility A Commitment
               or Facility B Commitment, as the case may be, to be exceeded;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | the
requested Advance would not cause such Lenders Total Commitment to be
               exceeded;
| | --- | ---------------------------------------------------------------------------------------------------

| | (e) | in
connection with the requested Advance, such Lender shall have received a
               Request from the Borrower in the form of Schedule 5 (Form of Request)
(together                with all certificates and attachments thereto) by:
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | with
respect to an Advance for an amount greater than US$ 20,000,000
          (twenty-million US Dollars) or its NIS Equivalent, which is linked to the Index
          or for which the interest rate is a fixed rate, no later than three Business
          Days prior to the Drawdown Date for the requested Advance; and
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | with
respect to all other Advances, no later than one Business Day prior to the
          Drawdown Date for the requested Advance.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------

| | (f) | no
event, condition or circumstance set forth in Section 13.1 (Market
               Disruption) of this Agreement shall have occurred and be continuing; and
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g) | the
Borrower shall have executed all standard forms, agreements or other
               documents required by such Lender and consistent with such Lenders
general                practice in order to provide the Advance.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.3 | Commencement
Date
|--- | -----------------

| | In
the event that, due to the failure of the Borrower to satisfy the conditions and
obligations set out in Sections 4.1 (Documentary conditions precedent) and 4.2 (Further
conditions precedent) above, the Commencement Date does not occur on or prior to 30th June,
2005, or such other date as the Parties shall agree, then this Agreement shall
automatically terminate and become null and void and of no further effect other than this
Section 4.3, Section 1.1 (Definitions), Section 22.1 (Up-front Fees), Section 23.1
(Initial Costs), Section 33 (Notices) and 36 (Governing Law and Jurisdiction) which shall
remain in full force and effect, and save in respect of claims for costs, damages,
compensation or otherwise arising out of any breach of the terms of this Agreement.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

23

---

---



|5. | DRAWDOWN
|-- | --------

|5.1 | Giving
of Requests
|--- | ------------------

|(a) | The
Borrower may borrow amounts under Facility A and Facility B by submitting a
          duly completed Request to one or more of the Lenders.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Unless
such Lender otherwise agreed, the latest time for receipt by a Lender of           a duly
completed Request is 12:00 noon on the relevant day on which the Request           is
submitted.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Each
Request is irrevocable.
|--- | ----------------------------

|(d) | No
Request may be made with respect to the UMB Facility.
|--- | --------------------------------------------------------

|(e) | No
Request shall be made to a Lender with respect to Existing Outstanding           Amounts,
which shall be deemed Advances in according with Section 5.3 (Deemed           Advances).
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5.2 | Requests
and Advances
|--- | ---------------------

| | A
Request will not be regarded as having been duly completed unless:
| | --------------------------------------------------------------------

| | (a) | it
identifies whether the Advance is under Facility A or Facility B;
| | --- | --------------------------------------------------------------------

| | (b) | it
identifies the Lender from whom the Borrower wishes to receive the Advance;
| | --- | ------------------------------------------------------------------------------

| | (c) | the
Drawdown Date is a Business Day falling within the Availability Period, and
               with respect only to the first Facility A Advance to be provided by each
Lender                for which a Request is required, the Drawdown Date is a Business
Day falling                within the Initial Availability Period;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | the
amount of the requested Advance is:
| | --- | ---------------------------------------

| | (i) | a
minimum of US$ 1,000,000 (one million US Dollars or its NIS Equivalent in
          accordance with Section 6 (Currency) and an integral multiple of 500,000 units
          of that currency, unless the amount requested is for the maximum undrawn amount
          available under the relevant Facility on the proposed Drawdown Date or is for
an           amount otherwise agreed in advance by the relevant Lender;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | in
the case of a Facility A Advance, when aggregated with the Facility A
          Outstandings at such time, and all other requested amounts for Facility A
          Advances made on or about the same date, no greater than the aggregate of the
          Facility A Commitments;
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | in
the case of a Facility B Advance, when aggregated with the Facility B
          Outstandings at such time, no greater than the aggregate of the Facility B
          Commitments; and
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

24

---

---



| | (iv) | for
a currency in accordance with Section 6.1 (Selection).
| | ---- | ----------------------------------------------------------

| | (e) | the
Facility A Outstandings for each Lender do not, subject to Section 5.5
               (Relevant Percentages) below, exceed or fall short of each Lenders
               Relevant Percentage of the aggregate of the Facility A Outstandings;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) | the
Repayment Date is:
| | --- | ----------------------

| | (i) | with
respect to Facility A, a date falling no earlier than twelve (12) months           after
the Drawdown Date; and
| | --- | --------------------------------------------------------------------------------------------------------------------

| | (ii) | with
respect to Facility B, a date falling no later than one day prior to           twelve
(12) months after the Drawdown Date.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------

| | (g) | it
specifies the length of each Interest Period with respect to such Advance,
               which, for an advance under Facility A, shall be either one (1) month or
(3)                months;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (h) | all
conditions precedent to the making of the Advance, as set out in Sections
               4.1 (Initial Conditions Precedent) and/or 4.2 (Further Conditions
Precedent), as                applicable, shall be fully satisfied or waived, as of the
relevant Drawdown                Date; and
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | it
is a request for only one Advance.
| | --- | -------------------------------------

|5.3 | Deemed
Advances
|--- | ---------------

|(a) | The
Existing Outstanding Amount with respect to each Lender shall be deemed to           be
an Advance made under Facility A on the Commencement Date, without any
          liability on the part of the Borrower for any breakage costs or other fees or
          commissions, and shall be included within the calculation of each Lenders
          Facility A Commitment and Facility A Outstandings as at the date of this
          Agreement.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The
UMB Outstandings shall be deemed to be an Advance made under the UMB           Facility
on the Commencement Date, without any liability on the part of the           Borrower for
any breakage costs or other fees or commissions.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5.4 | Lenders
obligations to fund Advances
|--- | ------------------------------------

|(a) | Each
Lender agrees to lend an amount equal to its Relevant Percentage. Subject           to
paragraph (b) below, no Lender will be obliged to lend more than its Relevant
          Percentage and each Lender shall only be obliged to lend if the conditions
          precedent under Section 4.2 (Conditions Precedent) have been fulfilled to
          the satisfaction of the relevant Lender.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Notwithstanding
Section 14 (Increased Costs) and Section 15 (Illegality) below,           prior to the
repurchase by the Borrower of its shares as referred to in Section           20.9(b)
(Distributions) below, in the event that IDB is unable to lend the full           amount
of its Relevant Percentage of Facility A due to guidelines or           recommendations
of the Bank of Israel, the amount of Facility A that cannot be           provided by IDB
shall be made available by BH and BLL in equal shares. In such           event, the
amounts of the Relevant Percentage and Total Commitment shall be           amended with
respect to the relevant Facility A Advances only, to reflect the
          above-mentioned adjustment.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

25

---

---



|5.5 | Relevant
Percentages
|--- | --------------------

|(a) | The
Borrower shall ensure at all times starting 1st September, 2005, the           Facility A
Outstandings for each Lender do not exceed or fall short of such           Lenders
Relevant Percentage of the aggregate of the Facility A           Outstandings, provided
that, in the event that the Facility A Outstandings for a           Lender does exceed or
fall short of its Relevant Percentage of the aggregate           Facility A Outstandings,
this shall not be deemed an Event of Default under this           Agreement if the
differential between the Lenders Facility A Outstandings           and its Relevant
Percentage of the aggregate of Facility A Outstandings is:
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | not
greater than US$5,000,000 (five million US Dollars) or
| | --- | ----------------------------------------------------------

| | (ii) | results
from the application of Section 5.4(b).
| | ---- | -----------------------------------------------

|(b) | Without
affecting the obligations of the Borrower in any way, no Lender, nor any
          Administrative Party, owes a duty to any person to verify or monitor the degree
          to which the Facility A Outstandings for each Lender exceed or fall short of
          such Lenders Relevant Percentage of the aggregate of Facility A
          Outstandings.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5.6 | Primacy
of the Finance Documents
|--- | --------------------------------

|(a) | Any
forms, agreements or documents with respect to the Facilities entered into           by
the Borrower in favour of a Participating Bank prior to the date of this
          Agreement, that are stated to be subject to the terms of the Existing Facility
          Agreement, shall be deemed to be subject to the terms of the Finance Documents.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | In
the event of any contradiction between the provisions of (i) any of the           Finance
Documents to which the Borrower is a party, and the provisions of (ii)           any
other forms, agreements or documents required by any of the Participating           Banks
to be signed by the Borrower with respect to the Facilities, the           provisions of
such Finance Documents shall prevail.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. | CURRENCY
|-- | --------

|6.1 | Selection
|--- | ---------

|(a) | The
Borrower may select the currency of an Advance in the relevant Request,           which
shall be
|--- | ----------------------------------------------------------------------------------------------------

| | (i) | NIS;
or
| | --- | -------

| | (ii) | US
Dollars provided that the amount of principal outstanding in U.S. Dollars
               under the Facilities at any time shall not exceed 10% (ten percent) of the
Total                Commitments, unless the Lender to which the relevant Request has
been submitted                has agreed in advance to provide the requested amounts in
US Dollars in excess                of the 10% threshold.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Each
part of an Advance which is to be denominated in a different currency from           any
other part of that Advance will be treated as a separate Advance.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

26

---

---



|6.2 | Revocation
of Dollar Drawdown Request
|--- | -------------------------------------

| | If
before 9.30 a.m. on any Drawdown Date:
| | -----------------------------------------

| | (a) | it
is impracticable for a Lender to fund the Advance in U.S. Dollars during that
               Interest Period in the ordinary course of business; and/or
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | the
use of the proposed currency might contravene any law or regulation,
| | --- | ------------------------------------------------------------------------

| | the
Lender shall give notice to the Borrower to that effect before 11.00 a.m. on that day. In
this event the Borrower may elect that:
| | -------------------------------------------------------------------------------------------------------------------------------------

| | (i) | the
drawdown will not be made; or
| | --- | ---------------------------------

| | (ii) | the
Advance shall be treated as a separate Advance denominated in NIS during the
               relevant Interest Period.
| | ---- | -------------------------------------------------------------------------------------------------------------------------

|6.3 | Drawdowns
|--- | ---------

| | If
an Advance is to be drawn down in NIS, the Original Dollar Amount of that Advance will be
determined by converting the NIS amount into US Dollars at the Representative Rate
published on the last Business Day prior to the Drawdown Date.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.4 | Prepayments
and repayments
|--- | --------------------------

| | Any
Advance, as well as any interest payable thereon, shall be repaid or prepaid in the same
currency as such Advance was made.
| | -------------------------------------------------------------------------------------------------------------------------------

|6.5 | Facility
Amount
|--- | ---------------

| | For
the purposes of calculating the amounts of Facility A Outstandings on any given date in
accordance with Section 7.1(c) (Repayment of Facility A), the aggregate amount of all
outstanding Advances shall be calculated on the basis of the Original Dollar Amount of
each Advance.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. | REPAYMENT
AND REBORROWING
|-- | -------------------------

|7.1 | Repayment
of Facility A
|--- | -----------------------

|(a) | The
Borrower shall repay each Facility A Advance in full on the Repayment Date           set
out for such Advance in the relevant Request.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Notwithstanding
Section 5.3 (Deemed Advances) and paragraph (a) above, the           Borrower shall repay
the Existing Outstanding Amounts in accordance with the           existing schedule of
repayment agreed with each relevant Lender with respect to           such outstanding
amounts, as set out in the Existing Outstanding Amount           Certificate.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Notwithstanding
paragraphs (a) and (b) above, if on any of the dates set out in           Schedule 2,
Part I (if the Option has not been exercised) or, as the case may           be, Part II
(if the Option has been exercised) (Facility A Repayment Schedule)           the
aggregate amount of the Facility A Outstandings for all Lenders exceed the
          aggregate Facility A Commitment set out in such Schedule with respect to such
          date, the Borrower shall:
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

27

---

---



| | (i) | repay,
within 5 (five) Business Days, outstanding Facility A Advances in the
               amount necessary such that the aggregate amount of the Facility A
Outstandings                for all Lenders no longer exceed the aggregate Facility A
Commitment at such                time; and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | provide
details to each Lender as to which Facility A Advance such repayment           relates.
| | ---- | -----------------------------------------------------------------------------------------------

|(d) | Subject
to the other terms of this Agreement, any amounts repaid under           paragraphs (a)
and (b) above may be re-borrowed.
|--- | ---------------------------------------------------------------------------------------------------------------------------------

|(e) | Any
mandatory prepayment of Facility A Advances may not be re-borrowed.
|--- | -----------------------------------------------------------------------

|(f) | All
Facility A Outstandings shall be repaid in full by the Borrower on the Final
          Maturity Date.
|--- | ---------------------------------------------------------------------------------------------------------

|7.2 | Repayment
of Facility B
|--- | -----------------------

|(a) | The
Borrower shall repay each Facility B Advance in full by the Repayment Date           set
out for such Advance in the relevant Request.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Subject
to the other terms of this Agreement, any amounts repaid under paragraph           (a)
above may be re-borrowed.
|--- | ------------------------------------------------------------------------------------------------------------------------

|(c) | Any
mandatory prepayment of Facility B Advances may not be re-borrowed.
|--- | -----------------------------------------------------------------------

|(d) | Notwithstanding
paragraph (a) above, all Facility B Outstandings shall be repaid           in full by the
Borrower on the Final Maturity Date.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------

|7.3 | Repayment
of the UMB Facility
|--- | -----------------------------

|(a) | The
Borrower shall repay the UMB Outstandings to UMB in accordance with the UMB
          Repayment Schedule.
|--- | -------------------------------------------------------------------------------------------------------------

|(b) | No
amounts repaid or prepaid by the Borrower to UMB with respect to the UMB
          Facility, may be re-borrowed.
|--- | -------------------------------------------------------------------------------------------------------------------

|7.4 | Miscellaneous
|--- | -------------

| | Subject
to Section 5.5 (Relevant Percentages) above, all repayments and prepayments made by the
Borrower to the Lenders hereunder shall be carried out in such a manner as to preserve
the Relevant Percentages of each Lender.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8. | PREPAYMENT
AND CANCELLATION
|-- | ---------------------------

|8.1 | Voluntary
Prepayment
|--- | --------------------

|(a) | The
Borrower may, by giving not less than 10 (ten) Business Days prior           notice
to a Participating Bank, prepay Advances granted by such Participating           Bank in
part or in full, subject to:
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

28

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| | (i) | such
prepayment being made on an Interest Due Date; and
| | --- | -------------------------------------------------------

| | (ii) | the
payment of any broken funding indemnity in accordance with Section 25.2
               (Broken Funding Indemnity).
| | ---- | ----------------------------------------------------------------------------------------------------------------------

|(b) | A
prepayment of part of a Facility A Advance must be in a minimum amount of US$
          1,000,000 (one million US Dollars) or its NIS Equivalent.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------

|8.2 | Mandatory
Prepayment  Disposals
|--- | --------------------------------

|(a) | Upon
the disposal by the Borrower of any fixed assets:
|--- | ------------------------------------------------------

| | (i) | which
are not exchanged for, or the Net Proceeds therefrom not used for the
               acquisition or improvement of, other fixed assets of similar function or
               character; and
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | the
Net Proceeds of which are:
| | ---- | ------------------------------

| | (A) | in
excess of US$10,000,000 (ten million US Dollars); or
| | --- | -------------------------------------------------------

| | (B) | when
aggregated with the sale of other such fixed assets, are in excess of
          US$25,000,000 (twenty-five million US Dollars) per calendar year,
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------

| | the
Borrower shall, in accordance with Section 8.4(b) below apply such excess amount towards
the prepayment of outstanding Advances (other than UMB Advances) under Facility A.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | For
the avoidance of doubt, the Borrower shall not dispose of fixed assets in           any
year in an aggregate amount in excess of US$50,000,000 (fifty million US
          Dollars) without the prior written consent of the Lenders.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.3 | Mandatory
Prepayment  Change of control
|--- | ----------------------------------------

| | Upon
a change of control of the Borrower, the Borrower shall, in accordance with Section
8.4(b) below, prepay all or any part of the Total Outstandings in such amount as
necessary in order to ensure that all of the Participating Banks comply with all
applicable guidelines of the Bank of Israel.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.4 | Miscellaneous
provisions
|--- | ------------------------

|(a) | The
Borrower shall ensure that all prepayments made hereunder are carried out in
          such a manner as to preserve the Relevant Percentage of each Lender.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Upon
the occurrence of an event as described in Sections 8.2 or 8.3 above, the
          Borrower shall deposit all amounts required to be prepaid to each Participating
          Bank into a deposit account secured in favour of each Participating Bank. All
          such deposited amounts shall be applied by the relevant Participating Bank
          towards the Advance(s) to be prepaid, on the next Interest Due Date.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

29

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---



|(c) | Any
prepayments under this Agreement shall be made together with accrued but           unpaid
interest up to the date of prepayment and all other amounts accrued and           payable
hereunder (including, without limitation, pursuant to Section 25
          (Indemnities) and, with regards to prepayments in NIS, Section 10 (Linkage)).
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | Any
notice of prepayment provided by the Borrower shall be irrevocable and shall
          specify the date fixed for prepayment, which Advance is being prepaid, the
          aggregate principal amount of the Advances being prepaid and the interest
          thereon and the Borrowers calculation of accrued interest and, with
          regards to prepayments in NIS, linkage pursuant to Section 10 (Linkage) to be
          paid on the prepayment date.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | The
provisions of this Section 8.4 (Miscellaneous Provisions) shall apply to all
          prepayments under this Agreement, including pursuant to Sections 14 (Increased
          Costs) and 15 (Illegality).
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | Neither
the Borrower nor any third party having a right liable to be affected by           the
Security Interests created by the Security Documents or the realisation           thereof
shall have any right under Section 13(b) of the Pledges Law, 5727-1967           or any
other statutory provisions in substitution therefore.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.5 | Cancellation
|--- | ------------

|(a) | Any
amount of the Facility A Commitment undrawn for twelve (12) consecutive           months
after the end of the Initial Availability Period shall automatically be
          cancelled.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Any
amount of the Facility A Commitment undrawn at the end of the Availability
          Period shall automatically be cancelled at close of business in Tel-Aviv on the
          last day of the Availability Period.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | The
Borrower may, during the Initial Availability Period, by giving not less           than
ten (10) days prior notice to the Facility Agent, cancel the undrawn
          amount of the Facility A Commitment in full or in part, provided that the
          Borrower shall pay the fees set out in Section 22.2(a) (Commitment Fee), on all
          undrawn amounts and cancelled amounts of the Total Commitment until 1st
          September, 2005 on a Total Commitment of no less than US$250,000,000 (two
          hundred and fifty million US Dollars).
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | The
Borrower may, after the Initial Availability Period, by giving not less than
          thirty (30) days prior notice to the Facility Agent, cancel the undrawn
          amount of the Facility A Commitment in full or in part.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | Any
amount of the Facility B Commitment may be cancelled by the Borrower, at any
          time, in accordance with this Section 8.5 provided that the Facility A
          Commitment has been reduced to zero at such time.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | The
conditions for any cancellation under this Agreement are:
|--- | -------------------------------------------------------------

| | (i) | that
any cancellation of part only of the Total Commitment shall be in an
               integral multiple of US$5,000,000 (five million US Dollars);
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | that
the Borrower ensures that all cancellations made hereunder (other than
               under Section 14 (Increased Costs) or Section 15 (Illegality)) are,
subject to                Section 5.5 (Relevant Percentages), carried out in such a
manner as to preserve                the Relevant Percentage of each Lender.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

30

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|(g) | No
amount of undrawn Commitment cancelled under this Agreement may subsequently           be
reinstated.
|--- | --------------------------------------------------------------------------------------------------------

|(h) | The
provisions of this Section 8.5 (Cancellation) shall apply to all           cancellations
of undrawn Commitment under this Agreement, including pursuant to           Sections 14
(Increased Costs) and 15 (Illegality).
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9. | INTEREST
&INTEREST PERIODS
|-- | --------------------------

|9.1 | Rate
of Interest
|--- | ----------------

|(a) | The
rate of interest on each Advance for each Interest Period shall be:
|--- | -----------------------------------------------------------------------

| | (i) | the
Lending Rate for such Participating Bank in effect at the Drawdown Date for
               such Advance, plus
| | --- | -----------------------------------------------------------------------------------------------------------------

| | (ii) | the
Margin.
| | ---- | -----------

|(b) | Interest
shall accrue from day to day and shall be calculated on the basis of           the actual
number of days elapsed and:
|--- | ------------------------------------------------------------------------------------------------------------------------------

| | (i) | with
respect to Advances drawn down in NIS, a year of three hundred and
               sixty-five (365) days; and
| | --- | -----------------------------------------------------------------------------------------------------------------

| | (ii) | with
respect to Advances drawn down in US Dollars, a year of three hundred and
               sixty (360) days.
| | ---- | ---------------------------------------------------------------------------------------------------------------

|9.2 | Due
dates
|--- | ---------

| | The
Borrower shall pay interest on each Advance in arrears on each Interest Due Date in
respect of such Advance.
| | ----------------------------------------------------------------------------------------------------------------

|9.3 | Breach
Interest
|--- | ---------------

| | The
Borrower shall forthwith on demand by each Participating Bank, upon or following the
occurrence of a Breach, pay interest on all amounts outstanding under the Facilities at
the rate determined by each Participating Bank to be its Lending Rate plus the Breach
Margin, from:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | with
respect to a Breach relating to the covenants set out in Section 19
               (Financial Covenants), the first date of the Ratio Period immediately
following                the one in which the Breach occurred;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | with
respect to all other Breaches, the date of the occurrence which results in
               a Breach,
| | --- | --------------------------------------------------------------------------------------------------------

| | until
such Breach is no longer subsisting, after as well as before judgment, provided that, if
the Breach relates to an event or occurrence other than non-payment of any principal or
interest by the Borrower, then during the first ninety (90) days of such default, the
Breach Margin shall be reduced by 2% (two percent) per annum.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

31

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---



|9.4 | Interest
Period Duration
|--- | ------------------------

|(a) | Subject
to the express provisions of this Agreement, the duration of each           Interest
Period of each Facility A Advance shall be either one (1) month or           three (3)
months, as specified in the relevant Request.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Each
Advance has successive Interest Periods.
|--- | ---------------------------------------------

|(c) | If
an Interest Period would otherwise end on a day which is not a Business Day,
          that Interest Period shall instead end on the next Business Day in that
calendar           month (if there is one) or the preceding Business Day (if there is
not).
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9.5 | Interest
Period Commencement
|--- | ----------------------------

| | The
first Interest Period for each Advance shall commence on its Drawdown Date and each
subsequent Interest Period relating to such Advance shall commence on the expiry of the
preceding Interest Period for such Advance.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9.6 | Coincidence
of Interest Periods
|--- | -------------------------------

|(a) | If
an Interest Period would otherwise overrun the Repayment Date for such           Advance,
it shall be shortened so that it ends on the Repayment Date.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | If
an Interest Period would otherwise overrun the Final Maturity Date, it shall           be
shortened so that it ends on the Final Maturity Date.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------

|9.7 | Other
adjustments
|--- | -----------------

| | The
Lenders, with the agreement of the Borrower, may make such other adjustments to the
duration of Interest Periods, either to accord with current market practice or to
facilitate the administration of Facility A and Facility B.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10. | LINKAGE
|--- | -------

|10.1 | Linkage
to Index
|---- | ----------------

| | Each
Advance denominated in NIS and all interest thereon and any other amount required to paid
by the Borrower in NIS hereunder shall be linked to the Index in accordance with the
following:
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | If
on any Linkage Date the New Index shall have risen in comparison to the
               Original Index, the Borrower shall make all payments to the relevant
               Participating Bank on such Linkage Date (whether in respect of the
principal of                the Advance, interest, or any other amount payable
hereunder), duly multiplied                by the New Index and divided by the Original
Index.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | If
on any such Linkage Date, the New Index shall not have risen or shall have
               fallen in relation to the Original Index, the Borrower shall effect
payment in                full of all such amounts payable hereunder at their stated
values, without any                reduction.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

32

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|10.2 | Non-Publication
of Index
|---- | ------------------------

|(a) | If
the monthly Index due to be published preceding any Linkage Date, shall not           be
published for any reason then, notwithstanding any other provision contained           in
this Section 10 (Linkage), the New Index with respect to any
          payment made on such Linkage Date, shall mean, the last Index published prior
          thereto, provided that such New Index shall serve as a provisional
          index until the publication of the official New Index.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | If
it transpires that the New Index which shall have been published late and           after
the aforesaid Linkage Date, shall have risen in comparison to the Index           which
served as a provisional basis for making the aforesaid payments, then the
          Borrower shall pay to each Lender, the resulting differentials within two (2)
          Business Days from the date of publication of the New Index, provided that if
          the New Index shall have fallen in relation to the Original Index, then the
          Original Index shall serve as the New Index for the purpose of calculating any
          such differentials.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11. | PAYMENTS
|--- | --------

|11.1 | Place
|---- | -----

| | All
payments by the Borrower under this Agreement shall be made to each Finance Party at the
account or office from which such Advance is made or such other account or office as each
Finance Party may notify the Borrower for this purpose.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.2 | Funds
|---- | -----

| | Payments
under this Agreement to a Finance Party shall be made for value by no later than 12:00
noon on the due date or at such times as each Finance Party may otherwise specify to the
Borrower as being customary at the time for the settlement of transactions in NIS or US
Dollars, as the case may be.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.3 | Currency
|---- | --------

| | All
amounts payable under this Agreement shall be paid in NIS or U.S. Dollars, as indicated.
| | --------------------------------------------------------------------------------------------

|11.4 | No
Set-off or Counterclaim
|---- | --------------------------

| | All
payments made by the Borrower under this Agreement shall be calculated without reference
to any set-off or counterclaim and shall be made free and clear of and without any
deduction for or on account of any set-off or counterclaim.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.5 | Non-Business
Days
|---- | -----------------

|(a) | If
a payment under this Agreement is due on a day which is not a Business Day,           the
due date for that payment shall instead be the next Business Day in the same
          calendar month (if there is one) or the preceding Business Day (if there is
          not).
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

33

---

---



|(b) | During
any extension of the due date for payment of any principal under this           Section
11.5 (Non-Business Days) interest is payable on that principal at the           rate
payable on the original due date.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.6 | Partial
payments
|---- | ----------------

|(a) | If
a Participating Bank receives a payment insufficient to discharge all the
          amounts then due and payable by the Borrower to such Participating Bank under
          this Agreement, the Participating Bank shall apply that payment towards the
          obligations of the Borrower under this Agreement in the following order:
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | first,
in or towards payment pro rata of any unpaid fees, costs and                expenses of
such Participating Bank (or any receiver appointed pursuant to the
               Security Documents on the application of the Participating Bank);
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | secondly,
in or towards payment pro rata of any Financing Costs due but                unpaid under
this Agreement;
| | ---- | -------------------------------------------------------------------------------------------------------------------

| | (iii) | thirdly,
in or towards payment of any Financing Principal due but unpaid                under this
Agreement; and
| | ----- | -----------------------------------------------------------------------------------------------------------------

| | (iv) | fourthly,
in or towards payment pro rata of any other sum due but unpaid                hereunder.
| | ---- | --------------------------------------------------------------------------------------------------

|(b) | Paragraph
(a) above shall override any appropriation made by the Borrower.
|--- | --------------------------------------------------------------------------

|12. | TAXES
|--- | -----

|12.1 | Gross-up
|---- | --------

| | All
payments by the Borrower hereunder shall be made without any deduction and free and clear
of and without any deduction for or on account of any Taxes, except to the extent that
the Borrower is required by law to make payment subject to any deduction or withholding
of any Taxes. If any Tax or amounts in respect of Tax must be deducted, or any other
deductions must be made, from any amounts payable or paid by the Borrower under the
Finance Documents to which it is a party, the Borrower shall pay such additional amounts
as may be necessary to ensure that the relevant Finance Party receives a net amount equal
to the full amount which it would have received had payment not been made subject to Tax
or other deduction.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12.2 | Tax
receipts
|---- | ------------

| | All
Taxes required by law to be deducted by the Borrower from any amounts paid or payable
under the Finance Documents to which it is a party shall be paid by the Borrower when due
and the Borrower shall, within fifteen (15) days of the payment being made, deliver to
the relevant Finance Party evidence (including all relevant tax receipts) that the
payment has been duly remitted to the appropriate authority.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

34

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|13. | MARKET
DISRUPTION
|--- | -----------------

|13.1 | Market
Disruption
|---- | -----------------

| | If:
| | ---

| | (a) | there
shall be no objective possibility for a Lender to finance itself in NIS or
               US Dollars in respect of any Advance about to be made; or
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | in
the opinion of any Lender:
| | --- | -----------------------------

| | (i) | matching
sources of funding for the relevant period will not be available to it           in the
ordinary course of business to fund an Advance; or
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | the
cost to it of obtaining matching sources of funding for the relevant period           of
such Advance would be in excess of the rate of interest for such Advance as
          determined in accordance with Section 9.1 (Rate of Interest);
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | then
such Lender shall promptly notify the Borrower and each of the other Lenders that this
Section 13 (Market Disruption) is in operation.
| | -------------------------------------------------------------------------------------------------------------------------------------------

|13.2 | Suspension
of Advances
|---- | ----------------------

|(a) | If
a notification under Section 13.1 (Market Disruption) applies to an Advance
          which has not been made, that Advance shall not be made. However, within 5
          (five) Business Days of receipt of the notification, the Borrower and the
          relevant Lender shall enter into negotiations for a period of not more than
          thirty (30) days with a view to agreeing an alternative basis for the borrowing
          of that Advance. Any alternative basis agreed shall be binding on the Borrower
          and the relevant Lender.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | In
the event that only one of the Lenders shall be unable to fund any Advance,
          such Lender shall promptly notify the Borrower and the remaining Lenders. The
          remaining Lenders shall be entitled (but not obliged) to fund such Advance
          notwithstanding the provisions of Section 5.5(a) (Relevant Percentages) above,
          provided that no Lender shall be required to lend an amount in excess of its
          Relevant Percentage of the Total Commitment at such time.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13.3 | Alternative
basis for outstanding Advances
|---- | ------------------------------------------

|(a) | If
a notification under Section 13.1 (Market Disruption) applies to an Advance
          which is outstanding, then on receipt of the notification, the Borrower and the
          relevant Lender or Lenders shall enter into negotiations for a period of not
          more than thirty (30) days with a view to agreeing an alternative basis for
          determining the rate of interest or funding or both applicable to that Advance.
          Any alternative basis agreed shall be, with the prior consent of all the
          Lenders, binding on all the Parties.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | If
no alternative basis is agreed (and the relevant circumstances are continuing
          at the end of the thirty day negotiation period), the relevant Lender shall, on
          or before the last day of the Interest Period to which the notification
relates,           certify an alternative interest rate and interest period for its
Advance           representing its costs of funds for the Advance plus an appropriate
margin as           determined by it. Each alternative rate or period so certified shall
be binding           on the Borrower and the relevant Lender and treated as part of this
Agreement.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

35

---

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|13.4 | Review
|---- | ------

| | So
long as any alternative basis for the ascertaining of the interest rate or funding is in
force, the Borrower and the Lenders shall from time to time, but not less than monthly,
review whether or not the circumstances referred to in Section 13.1 (Market Disruption)
still prevail with a view to returning to the original provisions of this Agreement. Upon
any return to the normal provisions of this Agreement, the Advances shall be continued
for an Interest Period expiring on the next Interest Due Date that would have applied
pursuant to Section 9 (Interest & Interest Periods) if the provisions of this Section
13 (Market Disruption) had not been operating.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|14. | INCREASED
COSTS
|--- | ---------------

|14.1 | Increased
costs
|---- | ---------------

|(a) | Subject
to Section 14.2 (Exceptions), the Borrower shall forthwith on demand by           a
Participating Bank, pay to such Participating Bank the amount of any increased
          cost incurred by it as a result of:
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | the
introduction of, or any change in, or any change in the interpretation or
               application of, any law or banking regulation; or
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | compliance
with any law or banking regulation adopted or promulgated after the                date
of this Agreement,
| | ---- | ---------------------------------------------------------------------------------------------------------------------

| | (including
any law or regulation relating to taxation, monetary union, or reserve asset, special
deposit, cash ratio, liquidity or capital adequacy requirements or any other form of
banking or monetary control). The relevant Participating Bank shall notify the other
Participating Banks in the event that it receives payment by the Borrower pursuant to
this Section 14.1.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Any
demand made by a Participating Bank under this Section 14.1 (Increased           Costs)
shall be:
|--- | -----------------------------------------------------------------------------------------------------

| | (i) | made
on the Borrower promptly upon its becoming aware of the same; and
| | --- | ----------------------------------------------------------------------

| | (ii) | contained
in a certificate which shall include a computation of the relevant                amount
in reasonable detail.
| | ---- | ------------------------------------------------------------------------------------------------------------------------

|(c) | In
this Agreement increased cost means:
|--- | -----------------------------------------

| | (i) | an
additional cost incurred by a Participating Bank as a result of its having
               entered into, or performing, maintaining or funding its obligations under,
any                Finance Document;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | that
portion of an additional cost incurred by a Participating Bank in making,
               funding or maintaining all or any Advances made or to be made by it under
this                Agreement; or
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | the
amount of any payment made by a Participating Bank, or the amount of any
               interest or other return foregone by such Participating Bank, calculated
by                reference to any amount received or receivable by such Participating
Bank from                any other Party under this Agreement.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

36

---

---



|14.2 | Exceptions
|---- | ----------

| | Section
14.1 (Increased costs) does not apply to any increased cost:
| | --------------------------------------------------------------------

| | (a) | compensated
for by the operation of Section 12 (Taxes) above; or
| | --- | ----------------------------------------------------------------

| | (b) | attributable
to any change in the rate of, or change in the basis of                calculating, Tax
on the overall net income of a Participating Bank (or the                overall net
income of a division or branch of the Participating Bank) imposed in                the
jurisdiction in which its principal office or Facility Office is situated.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|15. | ILLEGALITY
|--- | ----------

| | If,
as a result of any change in law or regulation after the date of this Agreement,:
| | -------------------------------------------------------------------------------------

| | (a) | it
is or becomes unlawful or impossible for a Participating Bank to give effect
               to any of its obligations as contemplated by this Agreement or to fund or
               maintain an Advance or to exercise its rights under this Agreement; or
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | a
Participating Bank fails to comply with Bank of Israel guidelines, directives
               or interpretations,
| | --- | ------------------------------------------------------------------------------------------------------------------

| | then
that Participating Bank, after taking commercially reasonable steps to mitigate the
impact of any of the foregoing, may notify the Borrower and the other Participating Banks
accordingly; and
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | the
Borrower shall forthwith prepay the Advances of that Participating Bank
               together with all accrued interest and other amounts payable by it to that
               Participating Bank under this Agreement; and
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | in
the case of a Lender, the undrawn portion of such Lenders Facility A
               Commitment and Facility B Commitment will forthwith be cancelled.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

|16. | GUARANTEE
AND INDEMNITY
|--- | -----------------------

| | The
Borrower shall procure that each Guarantee provided pursuant to this Agreement is at all
times valid and enforceable in accordance with its terms.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------

|17. | REPRESENTATIONS
AND WARRANTIES
|--- | ------------------------------

|17.1 | Representations
and warranties
|---- | ------------------------------

| | The
Borrower, in respect of itself and each other Obligor, makes the representations and
warranties set out in this Section 17 to each of the Finance Parties.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------

37

---

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|17.2 | Status
|---- | ------

| | It
is a company limited by shares, duly incorporated and validly existing under the laws of
the jurisdiction of its incorporation, with the power and authority to own its property
and assets and to carry on its business as it is now being and will be conducted.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17.3 | Power
and authority
|---- | -------------------

| | It
has all requisite corporate power and authority to execute and deliver the Finance
Documents to which it is a party and to carry out and perform its obligations under such
Finance Documents and to consummate the transactions contemplated thereby.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17.4 | Legal
validity
|---- | --------------

| | Each
Finance Document to which it is party, constitutes, or when executed in accordance with
its terms will constitute, its legal, valid and binding obligation enforceable in
accordance with its terms, subject to the following reservations:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | equitable
remedies are remedies which may be granted or refused at the                discretion of
the court;
| | --- | --------------------------------------------------------------------------------------------------------------

| | (b) | the
limitation on enforcement as a result of laws relating to bankruptcy,
               insolvency, liquidation, reorganisation, court schemes, moratoria,
               administration and other laws generally affecting the rights of creditors
               generally; and
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | rules
against penalties and similar principles.
| | --- | -----------------------------------------------

|17.5 | Non-conflict
|---- | ------------

| | The
entry into and the performance by it of, and the transactions contemplated by, the
Finance Documents to which it is a party do not and will not conflict with:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | any
law or regulation or judicial or official order applicable to it, in any
               respect; or
| | --- | -------------------------------------------------------------------------------------------------------

| | (b) | its
constitutional documents or any of its resolutions (having current effect);
               or
| | --- | -------------------------------------------------------------------------------------------------

| | (c) | any
document which is binding upon it in such a manner that would be reasonably
               likely to have a Material Adverse Effect,
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------

| | nor
will it result in the creation or imposition of any Security Interest on any of its
assets or those of any of its Subsidiaries (other than any Security Interest created
pursuant to the Security Documents).
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17.6 | No
Default
|---- | ----------

|(a) | No
Potential Default, Breach or Event of Default is outstanding or will result
          from the execution of, or the performance of any transaction contemplated by,
          any Finance Document, including, but not limited to the making of any Advance.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

38

---

---



|(b) | No
other event or circumstance is outstanding which constitutes (or with the
          giving of notice, lapse of time, determination of materiality or the fulfilment
          of any other applicable condition or any combination of the foregoing, will
          constitute) a default under any document which is binding on it in such a
manner           that would be reasonably likely to have a Material Adverse Effect.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17.7 | Consents
and Authorisations
|---- | ---------------------------

|(a) | All
authorisation, exemptions and other matters required by it in connection           with
the entry into, performance, validity and enforceability of, and the
          transactions contemplated by, the Finance Documents have been obtained or
          effected or will be obtained or effected prior to the date required by law,
save           for registration of charges and pledges with the Registrar of Companies
and/or           Registrar of Pledges which will be made promptly following the
Commencement           Date.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The
Licence is in full force and effect.
|--- | ----------------------------------------

|17.8 | Litigation
|---- | ----------

| | No
litigation, arbitration or administrative proceedings are current or pending or, to its
knowledge threatened, which is reasonably likely to have a Material Adverse Effect.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17.9 | Information
|---- | -----------

| | All
information provided or delivered by it to the Facility Agent or the Lenders in
accordance with this Agreement, was true, correct and complete in all material respects
and not misleading in any material respect as of the date that it was delivered.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17.10 | Financial
Statements
|----- | --------------------

| | Its
Accounts most recently delivered to the Facility Agent:
| | -----------------------------------------------------------

| | (a) | have
been prepared in accordance with US GAAP, consistently applied;
| | --- | --------------------------------------------------------------------

| | (b) | have
been audited by the Auditors; and
| | --- | --------------------------------------

| | (c) | fully
and fairly represent in all material respects its financial condition and
               state of affairs as at the date to which they were drawn up and for the
periods                specified therein and the results of their respective financial
operations                during such period, subject, in the case of half yearly and
quarterly Accounts,                to normal year-end adjustments,
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | and
there has been no material change in its financial condition since the date to which
those financial statements were drawn up.
| | ----------------------------------------------------------------------------------------------------------------------------------

|17.11 | Status
of security
|----- | ------------------

| | Each
Security Document to which it is party, confers the Security Interests it purports to
confer over all of the assets referred to in it and those Security Interests:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | are
not subject to any prior or higher ranking or pari passu Security Interests
               (other than any Permitted Security Interests);
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------

39

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| | (ii) | are
not void or liable to avoidance, due to the insolvency of the Borrower on
               the date of execution of the relevant Security Document, on liquidation or
               bankruptcy, composition or any other similar insolvency proceedings; and
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | have
been duly filed, recorded and/or registered in each office where required
               to create, perfect and maintain in full force and effect all Security
Interests                under the Security Documents.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17.12 | Pari
passu ranking
|----- | ------------------

| | Its
obligations under the Finance Documents to which it is a party rank and will rank at
least pari passu with all its other unsecured obligations, except for obligations
mandatorily preferred by law applying to companies generally.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17.13 | Indebtedness
|----- | ------------

| | It
does not have any outstanding indebtedness to any Person other than Permitted Financial
Indebtedness.
| | --------------------------------------------------------------------------------------------------------

|17.14 | Winding
-up
|----- | -----------

| | No
proceedings for its bankruptcy, winding up, insolvency, or reorganisation of or for any
moratorium or scheme of arrangement or any other similar proceedings are threatened,
contemplated or outstanding.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17.15 | Finance
Documents
|----- | -----------------

| | The
copies of the Finance Documents which it has delivered to the Facility Agent are true,
correct and complete copies of those documents.
| | ------------------------------------------------------------------------------------------------------------------------------------------

|17.16 | No
Force Majeure
|----- | ----------------

| | It
is not aware of any continuing event of force majeure as defined in or contemplated by
any of the Finance Documents to which it is a party.
| | ----------------------------------------------------------------------------------------------------------------------------------------------

|17.17 | Business
Plan
|----- | -------------

| | Any
factual information provided by an Obligor for the purposes of the Business Plan was true
and accurate in all material respects as at the date it was provided or as at the date
(if any) at which it is stated. All forecasts and projections contained in the Business
Plan are fair and were prepared on the basis of recent historical information and on the
basis of reasonable assumptions. Nothing has occurred or been omitted from the Business
Plan and no information has been given or withheld that results in the information
contained in the Business Plan being untrue or misleading in any material respect.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17.18 | Immunity
|----- | --------

|(a) | The
execution by it of each Finance Document to which it is a party constitutes,
          and its exercise of its rights and performance of its obligations under each
          Finance Document will constitute, private and commercial acts done and
performed           for private and commercial purposes; and
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

40

---

---



|(b) | It
will not be entitled to claim immunity from suit, execution, attachment or
          other legal process in any proceedings taken in the State of Israel or any
other           jurisdiction in relation to any Finance Document.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17.19 | Jurisdiction/governing
law
|----- | --------------------------

| | Its:
| | ----

| | (a) | irrevocable
submission under Section 36 (Governing Law and Jurisdiction) to the
               jurisdiction of the courts of Israel;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------

| | (b) | agreement
that this Agreement is governed by Israeli law; and
| | --- | -------------------------------------------------------------

| | (c) | agreement
not to claim any immunity to which it or its assets may be entitled,
| | --- | ------------------------------------------------------------------------------

| | are
legal, valid and binding under the laws of Israel.
| | ------------------------------------------------------

|17.20 | Accuracy
of Representation
|----- | --------------------------

| | The
rights and remedies of the Finance Parties in relation to any misrepresentations or
breach of warranty on its part shall not be prejudiced by any investigation by or on
behalf of the Finance Parties into its affairs, by the execution, delivery or performance
of any other Finance Document or by any other act or thing which may be done by or on
behalf of the Finance Parties or any of them in connection with any Finance Document.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17.21 | Times
when representations are made
|----- | -----------------------------------

| | (a) | All
the representations and warranties set out in this Section 17 are made by
               the Borrower on behalf of itself and each other Obligor, on the date of
this                Agreement. The representations and warranties set out in this section
17 shall                be deemed to be repeated on the Commencement Date and shall be
deemed to be                repeated on the date of delivery of each Request hereunder
and on each date on                which Advance is made.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | All
the representations and warranties in this Section 17 are deemed to be made
               by the Borrower on behalf of itself and each Guarantor on the day on which
such                Guarantor becomes (or it is proposed that it becomes) a Guarantor.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Each
representation or warranty deemed to be made after the date of this
               Agreement shall be deemed to be made by reference to the facts and
circumstances                existing at the date the representation or warranty is
deemed to be made, except                where any such representation or warranty is
expressed to be made as of an                earlier date, it shall be deemed to be
repeated with reference to the facts and                circumstances existing at such
earlier date.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|18. | INFORMATION
COVENANTS
|--- | ---------------------

|18.1 | Accounts
and Financial Information
|---- | ----------------------------------

| | The
Borrower shall provide, or procure that there shall be provided to the Participating
Banks:
| | -----------------------------------------------------------------------------------------------

41

---

---



| | (a) | as
soon as practicable but, in any event, by no later than 120 days from the end
               of the relevant financial year, the audited consolidated Accounts of the
               Borrower for each of its financial years, including, in each case, a
balance                sheet, profit and loss statement, in each case setting forth
comparative figures                for the preceding year;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | as
soon as practicable but, in any event, by no later than 45 days from the end
               of the first half-year of each financial year, the unaudited consolidated
               reviewed Accounts of the Borrower for that half year;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | as
soon as practicable but, in any event, by no later than 45 days from the end
               of each of the first three Quarters, the unaudited consolidated reviewed
               Accounts of the Borrower, for such Quarter; and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | not
more than 90 (ninety) days after its preparation, a revised business plan
               and revised cash flow projections to the extent approved by the Board of
               Directors of the Borrower.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|18.2 | Indebtedness
to Participating Banks
|---- | -----------------------------------

| | The
Borrower shall provide to the Facility Agent, in sufficient copies for all the
Participating Banks, a quarterly report detailing the indebtedness of the Borrower to
each of the Participating Banks.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|18.3 | Compliance
|---- | ----------

| | The
Borrower shall provide the Facility Agent, in sufficient copies for all the Participating
Banks:
| | ----------------------------------------------------------------------------------------------------

| | (a) | together
with the accounts specified in Section 18.1(a) above, a compliance
               certificate certified by the Auditors:
| | --- | ---------------------------------------------------------------------------------------------------------------------------------

| | (i) | setting
out in reasonable detail its calculation of and establishing its           compliance
with the Financial Covenants set out in Section 19 (Financial           Covenants) for
the previous quarter or the end of the last Ratio Period, as           applicable;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | confirming
that the accounts have been prepared in accordance with US GAAP and           Securities
Law regulations; and
| | ---- | ------------------------------------------------------------------------------------------------------------------------

| | (iii) | stating
that the Auditors did not, in the course of their audit or review,           discover any
breach of the Financial Covenants set out in Section 19 (Financial           Covenants).
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | together
with the accounts specified in Section 18.1 above, a certificate of the
               Chief Financial Officer of the Borrower setting out:
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | the
details and total value of the Permitted Investments;
| | --- | ---------------------------------------------------------

| | (ii) | details
of all outstanding amounts owed by the Borrower to each Participating           Bank
under each of the Facilities (to include amounts in Requests that have been
          delivered to a Participating Bank but have not yet been drawn); and
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

42

---

---



| | (iii) | no
Potential Default, Breach or Event of Default is outstanding or, if a           Potential
Default, Breach or Event of Default is outstanding, specifying such           Potential
Default, Breach or Event of Default and the steps, if any, being taken           to
remedy it.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|18.4 | Notices
|---- | -------

| | The
Borrower shall provide, or shall procure that there shall be provided, to the Facility
Agent, in sufficient copies for all the Participating Banks:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | promptly
after sending such notice or report, copies of all notices, documents                or
reports sent by the Borrower to its shareholders generally;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | promptly,
all filings, documents, forms, reports and notices filed by or on                behalf
of the Borrower, or by any of its Shareholders with respect to the
               Borrower (to the extent the Borrower is aware of such Shareholders               filing),
with the US Securities and Exchange Commission, the London Stock                Exchange,
NASDAQ, any other stock exchange or any securities regulatory                authority,
from time to time;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | a
list of the shareholders of the Borrower holding at least 5% (five percent) of
               the issued share capital of the Borrower at the date of this Agreement,
and an                update of such list to reflect any changes to the holdings of such
shareholders                of which the Borrower becomes aware;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | promptly
upon becoming aware of them, details of any litigation, arbitration or
               administrative proceedings which are current, threatened or pending
against the                Borrower which the Borrower believes is reasonably likely to
have a Material                Adverse Effect;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | promptly
upon becoming aware of its occurrence, notice of any Potential Default,
               Breach or Event of Default (and the steps, if any, being taken to remedy
it);
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) | promptly
after the Borrowers receipt thereof, a copy of any                management
letter or other similar communication received by the                Borrower from
the Auditors in relation to the Borrowers financial,                accounting or
other systems, management or accounts;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g) | promptly
after the Borrowers receipt thereof, a copy of any notice or
               communication referred to in Section 20.2(a) (Material Licences) together
with                copies of all other material notices between it and the Ministry;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (h) | promptly,
upon being notified of the same, details of the occurrence of a change                of
control or details of any proposed change of control of which it is aware;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | promptly,
upon becoming aware, details of any change to the aggregate                shareholding
in the Borrower required by the Ministry to be held by the Founding
               Shareholders; and
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

43

---

---



| | (j) | promptly
on request by any of the Participating Banks, a copy of any agreements                and
arrangements between the Shareholders (or any affiliates of the
               Shareholders) which may replace or amend the Shareholders Agreement, to
the                extent available to the Borrower.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|18.5 | General
|---- | -------

| | The
Borrower shall, promptly, on request by the Facility Agent, provide to the Facility
Agent, in sufficient copies for all the Participating Banks:
| | ----------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | a
certificate, signed by two of its authorised signatories on its behalf,
               certifying that no Potential Default, Breach or Event of Default is
outstanding                or, if a Potential Default, Breach or Event of Default is
outstanding,                specifying the Potential Default, Breach or Event of Default
and the steps, if                any, being taken to remedy it; and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | such
other information or documents (financial or otherwise) as the Facility
               Agent may request.
| | --- | --------------------------------------------------------------------------------------------------------------

|18.6 | Form
of Information
|---- | -------------------

| | All
financial statements, reports and projections required shall be prepared in accordance
with US GAAP, to the extent applicable, and shall fairly and accurately represent in all
material respects the financial condition of the Borrower.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|18.7 | Audit
and Accounting Dates
|---- | --------------------------

| | The
Borrower will ensure that:
| | ------------------------------

| | (a) | the
annual Accounts to be delivered to the Facility Agent and the Participating
               Banks pursuant to Section 18.1 above are audited by the Auditors;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | each
Obligor shall at all times have duly appointed auditors; and
| | --- | -----------------------------------------------------------------

| | (c) | it
will not, and no Obligor will, change its financial year end without the
               prior written consent of the Facility Agent other than (in the case of any
other                Obligor) to conform its financial year end to that of the Borrower.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|19. | FINANCIAL
COVENANTS
|--- | -------------------

|19.1 | Financial
Covenants
|---- | -------------------

|(a) | The
Borrower shall comply with the following financial ratios:
|--- | --------------------------------------------------------------

| | (i) | (A)       
until 31st December, 2006, Equity to Total Assets shall at all times be no           less
than 5% (five percent);
| | --- | ----------------------------------------------------------------------------------------------------------------------------

| | (B) | thereafter,
Equity to Total Assets shall be at all times no less than 10% (ten           percent);
| | --- | --------------------------------------------------------------------------------------------------

| | (ii) | Total
Debt to EBITDA less Capital Expenditure shall not exceed 4.25:1; and
| | ---- | --------------------------------------------------------------------------

44

---

---



| | (iii) | Total
Debt to EBITDA shall not exceed 2.5:1.
| | ----- | --------------------------------------------

|(b) | With
respect to paragraphs (a)(ii) and (a)(iii) above, EBITDA and Capital
          Expenditure shall be examined on an annualised basis, at the end of each Ratio
          Period.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|19.2 | Interpretation
|---- | --------------

|(a) | Except
as provided to the contrary in this Agreement, a calculation made or an
          accounting term used in this Section is to be made or construed in accordance
          with the principles applied in connection with the financial statements
prepared           in accordance with Section 18 (Information Covenants) above.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | No
item must be credited or deducted more than once in any calculation under           this
Section 19.
|--- | -------------------------------------------------------------------------------------------------------

|20. | GENERAL
COVENANTS
|--- | -----------------

|20.1 | Covenants
and Undertakings
|---- | --------------------------

| | Unless
indicated otherwise, the Borrower hereby makes the covenants and undertakings set out in
this Section 20 to each Finance Party.
| | --------------------------------------------------------------------------------------------------------------------------------------

|20.2 | Material
Licences
|---- | -----------------

|(a) | It
will notify each of the Participating Banks promptly upon the occurrence of           any
material breach of a Material Licence or upon the receipt of any notice or
          communication between the Ministry and it or any other member of the Group in
          connection with a Material Licence which either:
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | claims
a material breach of a Material Licence;
| | --- | -----------------------------------------------

| | (ii) | could
reasonably be expected to give rise to a revocation, termination, materially adverse
amendment, suspension or withdrawal of a Material Licence; or
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | otherwise
may be likely to have a Material Adverse Effect.
| | ----- | ----------------------------------------------------------

|(b) | It
will do all such things (at its own expense) as reasonably requested by the
          Facility Agent if the Facility Agent reasonably believes a Material Licence to
          be in danger of revocation, termination, materially adverse amendment,
          suspension or withdrawal, to mitigate the revocation, termination, materially
          adverse amendment, suspension or withdrawal of such Material Licence.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | It
will do all such things and take such steps as are necessary to ensure each
          Material Licence remains in full force and effect; and
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------

|(d) | It
will deliver to the Facility Agent in sufficient copies for each Finance           Party
any notice or communications referred to in paragraph (a) above           together
with copies of all other material notices between it and the Ministry.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

45

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|20.3 | Pari
passu ranking
|---- | ------------------

| | Each
Obligor undertakes that its obligations under the Finance Documents to which it is a
party do and will rank at least pari passu with all its other present and future
unsecured obligations, except for obligations mandatorily preferred by law applying to
companies generally.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20.4 | Security
and Negative pledge
|---- | ----------------------------

|(a) | It
shall ensure that:
|--- | ---------------------

| | (i) | on
or prior to the Commencement Date, the Floating Charge entered into by the
               Borrower is in effect and enforceable and has been duly registered at the
               Israeli Registrar of Companies; and
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | promptly
after any other Security Document is required, such Security Document                is
in effect and enforceable and has been duly registered at the Israeli
               Registrar of Companies and/or Registrar of Pledges, as the case may be.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | No
Obligor will, without the prior consent of Majority Lenders or, if required           in
accordance with Section 28.2(a), all of the Participating Banks, create or
          permit to subsist any Security Interest on any of its present or future assets
          other than as set out in paragraph (c) below.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | The
following Security Interests (the PermittedSecurityInterests)
may be created or permitted to subsist by the Borrower:
|--- | ---------------------------------------------------------------------------------------------------------------------------

| | (i) | any
Security Interest arising under the Security Documents, which for the
               avoidance of doubt, shall include security over the IDB Performance
Guarantee                Bond;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | any
Security Interest over assets of the Borrower arising solely by operation of
               law;
| | ---- | ----------------------------------------------------------------------------------------------------

| | (iii) | any
Security Interest over goods and documents of title to goods arising in the
               ordinary course of letter of credit transactions entered into in the
ordinary                course of trade and not prohibited under the Finance Documents;
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iv) | any
Security Interest existing at the time of acquisition on or over any asset
               acquired by it in the ordinary course of business on arms length
terms,                where such Security Interest was not created in contemplation of,
or in                connection with, the acquisition;
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (v) | any
Security Interest constituting operating leases or hire purchase
               arrangements affecting assets of any Obligor as permitted by the Finance
               Documents;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (vi) | any
Security Interest arising in relation to the netting of bank account
               balances;
| | ---- | -------------------------------------------------------------------------------------------------

| | (vii) | any
Security Interest arising by way of any retention of title of goods supplied
               where such retention is agreed in the ordinary course of its business; and
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

46

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| | (viii) | any
Security Interest created (other than by way of floating charge) in favour
               of a third party, over specific assets or rights of the Borrower other
than                pursuant to paragraphs (i) to (vii) above, securing obligations of no
greater                than US$10,000,000 (ten million US Dollars) in aggregate (or its
NIS Equivalent                or equivalent in other currencies).
| | ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|20.5 | Financial
Indebtedness
|---- | ----------------------

|(a) | The
Borrower shall not, and shall procure that no Obligor shall incur any           Financial
Indebtedness other than as set out in paragraph (b) below.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The
following Financial Indebtedness (the Permitted Financial           Indebtedness)
may be incurred by the Borrower:
|--- | ------------------------------------------------------------------------------------------------------------------------

| | (i) | any
Financial Indebtedness incurred under the Finance Documents;
| | --- | ----------------------------------------------------------------

| | (ii) | any
Financial Indebtedness incurred in the ordinary course of business to
               suppliers, consultants or employees of the Borrower;
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | the
securitisation of receivables in accordance with Section 20.22 (Discounting
               of Receivables) below;
| | ----- | ---------------------------------------------------------------------------------------------------------------------

| | (iv) | any
Financial Indebtedness arising pursuant to Hedging Transactions permitted
               under this Agreement;
| | ---- | ------------------------------------------------------------------------------------------------------------------

| | (v) | any
Financial Indebtedness arising pursuant to the IDB Performance Bond Counter
               Indemnity;
| | --- | ---------------------------------------------------------------------------------------------------------

| | (vi) | debt
issued by the Borrower(àâç) (the                Issued
Debt)that satisfies each of the following                conditions:
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------

| | (A) | unless
the Option has been exercised:
| | --- | -------------------------------------

| | (1) | the
maturity date of such Issued Debt shall not be before the earlier of the
          seventh anniversary of the issuance of the Issued Debt and the seventh
          anniversary of the Commencement Date;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | no
payments on account of principal of the Issued Debt shall be payable prior           to
the fourth anniversary of the Commencement Date; and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | to
the extent that repayments on account of the Issued Debt during the fifth           and
sixth year after the Commencement Date shall exceed US$ 60,000,000 (sixty
          million US Dollars) in either of such years (the ExcessAmount)
then the Facility A Commitment shall be reduced by one           quarter of the Excess
Amount on each of the first four anniversaries of the           Commencement Date and the
amounts set out in Schedule 2, Part I (Facility A           Repayment Schedule) shall be
adjusted accordingly;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (B) | if
the Option has been exercised:
| | --- | ---------------------------------

47

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| | (1) | the
maturity date of such Issued Debt shall not be before 1st September, 2009;           and
| | --- | --------------------------------------------------------------------------------------------

| | (2) | to
the extent that repayments of principal on account of the Issued Debt shall
          exceed NIS 250,000,000 (two hundred and fifty million New Israeli Shekels)
          (linked to the Index) at any time prior to 1st September, 2009 (the
          Excess Amount) then the Facility A Commitment shall be
          reduced by an amount equal to the Excess Amount and the amounts set out in
          Schedule 2, Part II (Facility A Repayment Schedule) shall be adjusted
          accordingly;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (C) | in
all cases, whether or not the Option has been exercised:
| | --- | -----------------------------------------------------------

| | (1) | the
issue price for the Issued Debt shall not be higher than 105% (one hundred           and
five percent) of the face value of such Issued Debt;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | the
financial covenants with respect to the Issued Debt shall be no more           burdensome
on the Borrower than the financial covenants set out in Section 19           (Financial
Covenants); and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | no
Potential Default, Breach or Event of Default is outstanding or might result
          from the issuance of the Issued Debt;
| | --- | -------------------------------------------------------------------------------------------------------------------------------

| | (vii) | Financial
Indebtedness permitted under Section 20.26 (Operating Leases);
| | ----- | ------------------------------------------------------------------------

| | (viii) | amounts
of up to an aggregate of US$100,000,000 (one hundred million US Dollars)
               owed to the Participating Banks, to be secured by the Floating Charge. For
the                avoidance of doubt, all outstanding liabilities of the Borrower
towards the                Participating Banks in respect of guarantees and Hedging
Transactions as at the                date of this Agreement, shall be deemed amounts
owed to the Participating Banks                on account of the aggregate US$
100,000,000 referred to in this paragraph; and
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ix) | Financial
Indebtedness incurred pursuant to any loans or guarantees given to, or                for
the benefit of the Borrower by another Obligor.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------

|20.6 | Mergers
and acquisitions
|---- | ------------------------

| | No
Obligor will, without the prior consent of Majority Lenders, enter into any amalgamation,
demerger, merger or reconstruction, unless:
| | ----------------------------------------------------------------------------------------------------------------------------------------

| | (a) | prior
to such amalgamation, demerger, merger or reconstruction, the Chief
               Financial Officer of the Borrower has certified in writing to the Facility
Agent                that the financial ratios set out in Section 20.9(a) (Distributions)
will be                satisfied immediately following the relevant amalgamation,
demerger, merger or                reconstruction; and
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | no
floating charge exists in favour of a third party over the assets of the
               entity with which such Obligor intends to merge.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------

48

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|20.7 | Compliance
with laws and payment of taxes
|---- | -----------------------------------------

|(a) | The
Borrower shall, and shall procure that each Obligor shall, comply in all
          material respects, with all laws and regulations applicable to it.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The
Borrower shall, and shall procure that each Obligor shall:
|--- | --------------------------------------------------------------

| | (i) | file
all tax and informational returns that are required to be filed by it in
               any jurisdiction; and
| | --- | ------------------------------------------------------------------------------------------------------------------

| | (ii) | pay
all its taxes when due, except to the extent the taxes are contested in good
               faith and by appropriate means, and a reserve reasonably regarded as
adequate                has been set aside for payment of those taxes.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20.8 | Access
|---- | ------

| | At
any time whilst a Potential Default, Breach or Event of Default is continuing, or the
Facility Agent reasonably believes a Potential Default, Breach or Event of Default may be
in existence:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | the
Borrower shall ensure, as far as it is able, that at reasonable times, on reasonable
prior notice by the Facility Agent (acting upon the instructions of the Majority
Lenders), any professional adviser to the Facility Agent or representative of the
Facility Agent or any other Administrative Party be afforded access to, and be permitted
to inspect or observe, all or any part of its business subject to any reasonable
confidentiality undertaking required by it; and
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | the
Borrower shall permit any professional adviser to the Facility Agent or representative of
the Facility Agent or the Administrative Parties, at reasonable times and on reasonable
prior notice by the Facility Agent, to have access to books, records, accounts,
documents, computer programmes, data or other information in the possession of or
available to it subject to any reasonable confidentiality undertaking required by it and
to take such copies as may be considered appropriate by such representative or
professional adviser acting reasonably.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20.9 | Distributions
|---- | -------------

|(a) | The
Borrower shall not, without the prior consent of Majority Lenders,           authorise,
declare or make any distribution (Chaluka, as defined in           the
Companies Law 1999) or make any payment of capital to its shareholders (a           Distribution),
unless, in the case of the Borrower only, if           immediately after payment of such
Distribution (a Permitted           Distribution), the financial
ratios set out in Section 19.1(a) are as           follows:
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | Equity
to Total Assets shall be no less than 20% (twenty percent);
| | --- | ------------------------------------------------------------------

| | (ii) | Total
Debt to EBITDA less Capital Expenditure shall not exceed 3.25:1; and
| | ---- | --------------------------------------------------------------------------

| | (iii) | Total
Debt to EBITDA shall not exceed 2:1.
| | ----- | ------------------------------------------

49

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| | Prior
to the payment of any Permitted Distribution, the Chief Financial Officer of the Borrower
shall certify in writing that the financial ratios set out in paragraph (a) above will be
satisfied immediately following the proposed Permitted Distribution.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Notwithstanding
the foregoing, the Borrower may make a one-time dividend or           repurchase of its
shares prior to 27th June, 2005, in which case the Chief           Financial Officer of
the Borrower shall certify in writing that the financial           ratios set out in
Section 19.1(a) will be satisfied immediately following such           Distribution.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Notwithstanding
the provisions of this Section 20.9, the Borrower shall not be           entitled to make
any Distribution at a time when the Majority Lenders have           waived a Potential
Default, Breach or Event of Default by the Borrower in           connection with its
compliance with Section 19 (Financial Covenants).
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20.10 | Shareholdings
|----- | -------------

| | The
aggregate shareholdings of the Founder Shareholders shall not fall below the level
required by the Ministry from time to time.
| | ----------------------------------------------------------------------------------------------------------------------------------

|20.11 | Insurances
|----- | ----------

|(a) | The
Borrower shall, on behalf of itself and each Obligor, maintain insurance           with
financially sound and reputable insurers with respect to its assets of an
          insurable nature against such risks and in such amounts as are normally
          maintained by persons carrying on the same or a similar class of business and
as           may be required by the terms of any applicable law or any contract binding
on it           (including for the avoidance of doubt, the Licence).
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The
Borrower shall ensure that, in respect of each policy of insurance taken out           by
or on behalf of the Borrower and each Obligor pursuant to this Section 20.11:
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | a
clause is endorsed upon such policy that the policy shall not be invalidated
               as regards the respective rights and interests of the Security Trustee and
the                Finance Parties and that the insurance company will not seek to avoid
liability                under the relevant policy due to any breach of the insuring
conditions or any                other act or omission unknown to or beyond the control
of the Security Trustee                including without limitation, any inadvertent
misrepresentation, misdescription,                or non-disclosure of any material fact;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | a
clause is endorsed upon such policy by the insurer to notify the Security
          Trustee:
| | ---- | ----------------------------------------------------------------------------------------------

| | (A) | of
any material alteration to the insurance policy at least 30 days before such
          alteration is due to take effect;
| | --- | ---------------------------------------------------------------------------------------------------------------------------

| | (B) | promptly
upon its becoming aware, of any act or omission or of any event of           which the
insurer has knowledge and which he or it considers might invalidate or           render
unenforceable in whole or in part the insurance policies; and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (C) | promptly,
of any default in the payment of premium or the non renewal or expiry           of the
insurance policies and to extend or continue the insurance policies at           the
request and expense of the Security Trustee. However, the insurer shall not           be
obligated to continue the insurance for a period exceeding 90 days from the
          date on which the Security Trustee is notified of such payment default;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

50

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| | (iii) | a
clause is endorsed upon such policy to the effect that the relevant insurance
               company waives all rights of contribution arising against any other
insurance                effected by the Facility Agent, Finance Parties or the Security
Trustee (or any                of them) and the insurance company agrees to waive any
rights of subrogation                arising in respect of the rights of the Facility
Agent, Finance Parties or the                Security Trustee (or any of them) under the
Agreement; and
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iv) | a
clause is endorsed upon such policy to the effect that no reduction in sums
          insured, limits or cover or increase in excess or deductible under such policy
          shall take effect unless at least 30 days prior written notice has been
          given to the Security Trustee,
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | subject
to each of such clauses, undertakings and provisions being viable commercially in the
Israeli and international insurance market.
| | -----------------------------------------------------------------------------------------------------------------------------------------

|(c) | The
Borrower shall ensure that all of the property insurance policies required           to
be taken out and maintained by it pursuant to this Section 20.11 shall           contain
loss payee provisions, such that in respect of any claim, the payment           thereof
shall be made to the Borrower, unless the insurance company has received           prior
instructions from the Security Trustee that such payment shall be made           directly
to the Security Trustee or as it may direct following the occurrence of           a
Breach.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | Save
in the circumstances referred to in paragraph (e) below, all moneys           received or
receivable under any insurances in respect of property or assets           damaged or
destroyed shall promptly (subject to the rights and claims of any           person having
prior rights thereto) be applied, at the option of the Borrower           (or as the case
may be, on and after the occurrence of any Breach and for so           long as such event
is continuing, at the option of the Security Trustee) either           in repairing,
replacing, restoring or rebuilding the property or assets damaged           or destroyed
or in payment of amounts due under the Finance Documents.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | All
moneys received or receivable under any insurances in respect of property or
          assets damaged or destroyed whilst a Potential Default (but not an Event of
          Default) has occurred and is continuing shall be placed to the credit of a
          blocked account subject to an encumbrance in favour of the Security Trustee
          until the Potential Default ceases to exist or is waived or the relevant
          Potential Default becomes an Event of Default.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | The
Borrower shall:
|--- | -------------------

| | (i) | promptly
notify the Facility Agent of any insurance claim where the amount of                such
claim exceeds US $10,000,000 (ten million United States Dollars), or when
               aggregated with all other insurance claims in the same calendar year,
               US $25,000,000 (twenty-five million five hundred thousand United
States                Dollars) (or its equivalent, on the date on which the claim is
made, in the                currency in which such claim is made);
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | take
all action reasonably within its power to procure that nothing is done or
               offered to be done whereby any of the insurances taken out hereunder may
be                rendered void, voidable, unenforceable, suspended or impaired in whole
or in                part or to otherwise render any sum paid out under any such policy
repayable in                whole or in part.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

51

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|20.12 | Conduct
of business
|----- | -------------------

| | The
Borrower shall, and shall procure that each Obligor shall:
| | --------------------------------------------------------------

| | (a) | in
all material respects conduct its business in a reasonable and prudent manner
               in accordance with all applicable laws and regulations and the terms of
the                Finance Documents; and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | meet
all of its material obligations as they fall due; and
| | --- | ----------------------------------------------------------

| | (c) | promptly
perform its material obligations, and enforce its material rights under
               each agreement to which it is a party, to the extent that failure to do so
would                have a Material Adverse Effect.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20.13 | Use
of Proceeds
|----- | ---------------

| | The
Borrower shall apply the proceeds of the Advances wholly and exclusively for the purposes
set out in Section 3 (Purpose).
| | -----------------------------------------------------------------------------------------------------------------------------

|20.14 | Investments
|----- | -----------

|(a) | No
Obligor will, without the prior consent of the Majority Lenders, invest in           the
share capital of any corporate body or other entity or purchase or acquire           any
shares, obligations or securities of, or any interest in or make any capital
          contribution to any Person or make any other investments, other than as set out
          in paragraph (b) below.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The
following investments (the Permitted Investments) may be
          made by the Borrower:
|--- | ----------------------------------------------------------------------------------------------

| | (i) | investments
in the field of installation, construction, maintenance and                operation of
wireless networks in Israel and any other related business                activities
which may assist or contribute to the activities of the Borrower, or                cause
the operations of the Borrower to be more efficient; and/or
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | investments
in Israel (including investments in, or guarantees on behalf of,
               Subsidiaries of the Borrower) in an amount of up to US$ 40,000,000 (forty
               million US Dollars) per annum, unless at such time the financial ratio set
out                in Section 19.1(a)(ii) (Financial Covenants) is no greater than
3.75:1, in which                case such Permitted Investment may be up to US$
60,000,000 (sixty million US                Dollars) per annum, provided that:
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (A) | if
any such investment is in a Wholly-owned Subsidiary, such Subsidiary has           become
a Guarantor in accordance with Section 29.2 (Guarantors) below; and
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (B) | if
any such investment is in a Subsidiary that as a result of such investment
          becomes a Material Subsidiary, the Borrower has created a Subsidiary Share
          Pledge over all of its shares in such Material Subsidiary in favour of the
          Security Trustee (on behalf of the Finance Parties) and registered such
Security           Document at the Israeli Register of Companies and/or Register of
Pledges, as           required.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

52

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|(c) | For
the purpose of the Financial Covenants set out in Section 19 (Financial
          Covenants), the Permitted Investments described in paragraph (b)(ii) above
shall           be treated as Capital Expenditure.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20.15 | Consents
and Authorisations
|----- | ---------------------------

|(a) | Each
Obligor will obtain or cause to be obtained:
|--- | -------------------------------------------------

| | (i) | every
consent, authorisation, licence or approval of, or registration with or
               declaration to, governmental or public bodies or authorities or courts;
and
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | every
notarisation, filing, recording, registration or enrolment in any court or
               public office in Israel,
| | ---- | ------------------------------------------------------------------------------------------------------------------------

| | in
each case required by any Obligor to authorise, or required by any Obligor in connection
with, the execution, delivery, validity, enforceability or admissibility in evidence of
the Finance Documents or the performance by any Obligor of its respective obligations
under the Finance Documents to which it is a party.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Each
Obligor will obtain or cause to be obtained every Authorisation relevant to           it
and ensure that:
|--- | --------------------------------------------------------------------------------------------------------------

| | (i) | none
of the Authorisations is revoked, cancelled, suspended, withdrawn, terminated, expires
and is not renewed or otherwise ceases to be in full force and effect; and
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | no
 Authorisation  is  modified  and no member of the Group  commits  any  breach of the
terms or                      conditions of any Authorisation,
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | which
would or is reasonably likely to have a Material Adverse Effect.
| | ----------------------------------------------------------------------

|20.16 | Constitutional
Documents
|----- | ------------------------

| | The
Borrower shall not, and shall procure that no Obligor shall, amend its constitutional
documents in any respect materially adverse to the interests of the Participating Banks
without the prior written consent of the Facility Agent (acting on the instructions of
the Majority Lenders).
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20.17 | Maalot
Rating
|----- | -------------

| | The
Borrower shall apply for a rating at Maalot rating agency or another comparable rating
agency in Israel no less frequently than once per calendar year.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------

|20.18 | Hedging
Transactions
|----- | --------------------

|(a) | The
Borrower shall ensure it manages its interest rate and currency exchange
          exposure in a prudent manner.
|--- | --------------------------------------------------------------------------------------------------------------------

|(b) | The
Borrower shall not enter into any Hedging Transaction other than:
|--- | ---------------------------------------------------------------------

53

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| | (i) | those
defined in paragraph (a) of the definition of Hedging Transaction, entered
               into for the purposes set out in paragraph (a) above;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | spot
foreign exchange contracts entered into in the ordinary course of business;
               and
| | ---- | ---------------------------------------------------------------------------------------------------

| | (iii) | Forex
Transactions, currency swaps or currency options entered into for the
               purposes of hedging actual or projected foreign exchange exposures arising
in                the ordinary course of business carried on in compliance with the terms
of this                Agreement.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | The
Borrower shall not enter into any Hedging Transactions for any speculative
          purpose.
|--- | -------------------------------------------------------------------------------------------------

|20.19 | Sale
and Leaseback
|----- | ------------------

| | No
Obligor will sell, transfer or otherwise dispose of any of its assets or any interest
therein on terms whereby such asset is or may be leased to or re-acquired or acquired by
any member of the Group in circumstances where the transaction is entered into primarily
as a method of raising finance or of financing the acquisition of an asset.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20.20 | Loans
and Guarantees
|----- | --------------------

| | No
Obligor will make any loans or give any guarantee to or for the benefit of any person,
other than loans or guarantees:
| | -------------------------------------------------------------------------------------------------------------------------

| | (i) | arising
under the Finance Documents;
| | --- | ------------------------------------

| | (ii) | arising
in the ordinary course of its business;
| | ---- | -----------------------------------------------

| | (iii) | to,
or in respect of the obligations of, another Obligor; or
| | ----- | ------------------------------------------------------------

| | (iv) | qualifying
as a Permitted Investment under Section 20.14 (Investments).
| | ---- | -----------------------------------------------------------------------

|20.21 | Operating
Leases
|----- | ----------------

| | No
Obligor will enter into any operating lease of or in respect of equipment, machinery or
plant (other than any private circuits, leased lines and motor vehicles and other than
any computer or information technology systems used in the ordinary course of business of
any member of the Group) if the equipment, machinery or plant concerned is of such
importance in the business of the Group taken as a whole that such business would be
materially and adversely affected were the leases for such equipment, machinery or plant
to be terminated early and the right to possession of the equipment, machinery or plant
lost to the Group.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20.22 | Discounting
of Receivables
|----- | --------------------------

| | No
Obligor will sell or otherwise dispose of any of its receivables other than the sale or
securitization on arms length terms, of debts owing to the Group incurred in
connection with the sales of handsets and other terminal equipment, provided the
aggregate amount of outstanding receivables permitted to be sold or securitized shall not
at any time exceed an aggregate amount equal to US $150,000,000 (one hundred and
fifty million US Dollars) or its equivalent.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

54

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|20.23 | Duration
|----- | --------

| | The
undertakings in this Section 20 shall remain in force for as long as any amount is or may
be outstanding under this Agreement or any Commitment is in force.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

|21. | DEFAULT
|--- | -------

|21.1 | Events
of Default
|---- | -----------------

| | Each
of the events set out in this Section 21 is an Event of Default (whether or not caused by
any reason whatsoever outside the control of any or all of the Obligors or any other
person), provided that the Facility Agent has delivered to the Borrower written notice
that such Event of Default is declared.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21.2 | Non-payment
|---- | -----------

| | Any
Obligor does not pay, for whatever reason, on the due date, any amount payable by it
under this Agreement or any other Finance Document at the place at and in the currency in
which it is expressed to be payable, provided that this Section 21.2 (Non-Payment)
shall not apply to any unpaid amounts which are paid in full within two Business Days of
the due date for payment.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21.3 | Breach
of other obligations
|---- | ---------------------------

|(a) | Any
Obligor does not comply with any of Sections 19 (Financial Covenants), 20.3
          (Pari Passu Ranking), 20.4 (Security and Negative Pledge), 20.5 (Financial
          Indebtedness), 20.6 (Mergers and acquisitions), 20.9 (Distributions) or 20.14
          (Investments).
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The
Borrower does not comply with any provision of any Finance Document (other           than
those referred to in Section 21.2 (Non-payment) and paragraph (a) above)           and,
if capable of remedy in the opinion of the Majority Lenders, such breach is           not
remedied within 30 days after written notice from the Facility Agent.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21.4 | Misrepresentation
|---- | -----------------

| | A
representation or warranty made or repeated by any Obligor under any Finance Document to
which it is a party is incorrect in any material respect when made or deemed to be made
or repeated.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21.5 | Cross
Default
|---- | -------------

|(a) | Any
Financial Indebtedness of the Borrower in excess of US$ 15,000,000 (fifteen
          million US Dollars) is not paid when due after giving effect to any grace
period           applicable thereto.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Any
Financial Indebtedness of the Borrower in excess of US$ 15,000,000 (fifteen
          million US Dollars) becomes prematurely due and payable or is placed on demand
          as a result of an event of default (howsoever described) under the document
          relating to that Financial Indebtedness.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

55

---

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|(c) | Any
Security Interest securing Financial Indebtedness in excess of US$           15,000,000
(fifteen million US Dollars) over any asset of the Borrower or any           Obligor
becomes enforceable.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21.6 | Insolvency
|---- | ----------

| | The
Borrower:
| | -------------

| | (a) | commits
an act of bankruptcy, is, or is deemed for the purposes of any law to                be,
unable to pay its debts as they fall due or to be insolvent, or admits
               inability to pay its debts as they fall due; or
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | suspends
making payments on all or any class of its debts or announces an                intention
to do so, or a moratorium is declared in respect of any of its
               indebtedness.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21.7 | Insolvency
proceedings and appointment of receivers and managers
|---- | ----------------------------------------------------------------

|(a) | A
resolution for the winding-up, entry into receivership or administration of           the
Borrower is passed at a meeting of the Borrower.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Any
person presents a petition which is not withdrawn or set aside within sixty
          (60) days for the winding-up, bankruptcy, receivership, reorganisation or for
          the administration of the Borrower.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Any
liquidator, trustee in bankruptcy, judicial custodian, compulsory manager,
          permanent or interim receiver, administrator or the like is appointed in
respect           of the Borrower or any material part of its assets, or an order
(provisional or           otherwise) for the winding-up or administration of the Borrower
is made,           provided that in the case of an appointment of an interim receiver or
the making           of a provisional order only, such appointment or order is not
dismissed within           sixty (60) days.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | The
directors of the Borrower request the appointment of a permanent or interim
          liquidator, trustee in bankruptcy, judicial custodian, compulsory manager,
          interim or permanent receiver, administrator or the like.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21.8 | Creditorsprocess
|---- | -----------------

| | Any
distress, execution, attachment, sequestration, or other process affecting any material
asset of the Borrower, provided that in the event such process is being contested in good
faith by appropriate proceedings such process shall constitute an Event of Default only
sixty (60) days after its initiation if it has yet to be discharged.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21.9 | Illegality
|---- | ----------

|(a) | Any
Finance Document is not or ceases to be a valid, binding and enforceable
          obligation of, or is repudiated by, the Borrower or becomes void or
          unenforceable.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Any
authorisation required in relation to the performance, validity or
          enforceability of any Finance Document is revoked or amended in a manner or to
          an extent that has a Material Adverse Effect.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

56

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|21.10 | Effectiveness
of security
|----- | -------------------------

| | Any
Security Document entered into by an Obligor is not effective or is alleged by such
Obligor to be ineffective for any reason.
| | ---------------------------------------------------------------------------------------------------------------------------------

|21.11 | Ownership
of the Borrower
|----- | -------------------------

| | The
aggregate shareholding of the Founder Shareholders is less than the level required by the
Ministry from time to time.
| | -------------------------------------------------------------------------------------------------------------------------

|21.12 | Breach
of a Material Licence or any Authorisation
|----- | -------------------------------------------------

|(a) | A
Material Licence or any Authorisation necessary for any Obligor to comply with
          its obligations under the Finance Documents to which they are a party is in
          whole or in any material part:
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | surrendered,
terminated, withdrawn, suspended, cancelled or revoked or does not                remain
in full force and effect or otherwise expires and is not renewed prior to
               its expiry (in each case, without replacement by a Material Licence(s) or
               Authorisation, as applicable having substantially equivalent effect); or
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | modified
in any material respect or breached (unless such modification or breach                is
reasonably likely not to have a Material Adverse Effect).
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Any
event occurs which is reasonably likely to give rise to the revocation,
          termination, cancellation or suspension of a Material Licence (without
          replacement) in such circumstance where the Borrower is unable to demonstrate
to           the reasonable satisfaction of the Majority Lenders within 30 (thirty) days
of           such event occurring that such termination, suspension or revocation will
not           occur.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | For
the avoidance of doubt, nothing in this Agreement shall be construed as a
          waiver by the Finance Parties of their rights under this Section 21.12 arising
          from any breach of a Material Licence.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21.13 | Repudiation
|----- | -----------

| | Any
Obligor repudiates or purports to repudiate or threatens to repudiate any of the Finance
Documents to which it is a party.
| | ------------------------------------------------------------------------------------------------------------------------------

|21.14 | No
Trading in Securities
|----- | ------------------------

| | In
the event that with respect to any shares or other securities convertible into shares of
the Borrower which are traded on a stock exchange, there is no trading in such shares or
other convertible securities for a consecutive period of 10 (ten) or more days on which
trading is conducted on such stock exchange.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21.15 | Non-Compliance
with any Securities Authority
|----- | --------------------------------------------

| | In
the event that the Borrower breaches or fails to comply with any material undertakings or
obligations entered into by it, or imposed on it, in favour of any securities authority
in any country or state in which share, securities or debentures of the Borrower are
traded or fails to comply with any material rules, regulations or other law of any such
securities authority.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

57

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|21.16 | Governmental
Intervention
|----- | -------------------------

| | By
or under the authority of the Government of Israel or any other competent Israeli
authority:
| | -----------------------------------------------------------------------------------------------

| | (a) | all
or the majority of the management of the Borrower is displaced or the
               authority of any Borrower in the conduct of its business is wholly or
materially                curtailed; or
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | all
or a majority of the issued shares of the Borrower or the whole or any part
               (the book value of which is 10% (ten percent) or more of the book value of
the                whole) of the revenues or assets of the Borrower is seized,
nationalised,                expropriated or compulsorily acquired.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21.17 | Cessation
|----- | ---------

| | The
Borrower ceases, or threatens to cease, to carry on all or a substantial part of its
business (save in consequence of any reorganisation, reconstruction or amalgamation
permitted under this Agreement and save as may result from any disposal of assets
permitted by the terms of this Agreement or where such business or part thereof is
carried on by another Obligor or for any solvent liquidation, dissolution or winding-up
of any member of the Group previously approved in writing by the Majority Lenders).
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21.18 | Material
Adverse Effect
|----- | -----------------------

| | Any
event or series of events occur which in the reasonable opinion of the Majority Lenders
after discussion with the Borrower, is likely to have a Material Adverse Effect.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21.19 | Acceleration;
Other Remedies
|----- | ----------------------------

| | On
and at any time after the occurrence of an Event of Default (which is continuing,
unremedied and unwaived) any of the Participating Banks may, subject to Section 28.2(b)
(Exceptions), by notice to the Borrower:
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | cancel
their Facility A Commitment and Facility B Commitment; and/or
| | --- | --------------------------------------------------------------------

| | (b) | demand
that all or part of the Advances, together with accrued interest and all
               other amounts accrued under the Finance Documents be immediately due and
               payable, whereupon they shall become immediately due and payable; and/or
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | demand
that all or part of the Advances together with accrued interest and all
               other amounts accrued under the Finance Documents be payable on demand,
               whereupon they shall immediately become payable on demand of the Lenders;
and/or
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | proceed
to enforce or exercise any or all of the rights, remedies and powers
               available to it under all or any of the Finance Documents and to enforce
all or                any remedies thereunder in accordance with Israeli law.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

58

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|21.20 | Duty
to monitor
|----- | ---------------

| | No
Finance Party, is obliged to monitor or enquire as to whether or not a Potential Default,
Breach or Event of Default has occurred. The Finance Parties will not be deemed to have
knowledge of the occurrence of a Potential Default, Breach or Event of Default.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|22. | FEES
|--- | ----

|22.1 | Up-front
fee
|---- | ------------

| | The
Borrower shall pay to each of the Lenders an up-front fee for arrangement of Facility A
and Facility B as set out in the relevant Fee Letter.
| | -------------------------------------------------------------------------------------------------------------------------------------------------

|22.2 | Commitment
Fee
|---- | --------------

|(a) | The
Borrower shall pay to each Lender:
|--- | --------------------------------------

| | (i) | subject
to Section 8.5(c) (Cancellation), during the Initial Availability                Period,
a commitment fee calculated at the rate of 0.25% per annum on the                undrawn
portion of the Lenders Facility A Commitment;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | thereafter
until the end of the Availability Period, a commitment fee calculated                at
the rate of 0.5% per annum on the undrawn portion of the Lenders
               Facility A Commitment, to the extent that such commitment has not been
               cancelled; and
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | during
the Availability Period, a commitment fee calculated at the rate of 0.5%
               per annum on the undrawn portion of the Lenders Facility B
Commitment.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The
commitment fee shall accrue and be calculated in accordance with Section           26.2
(Calculations), and is payable quarterly in arrears until and on the last           day
of the Availability Period.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|22.3 | Ongoing
fees
|---- | ------------

| | Notwithstanding
Section 22.2 (Commitment Fee) above, the Borrower shall pay to each Participating Bank
all commissions, fees and expenses customarily payable to such Participating Bank in
connection with the regular, day-to-day, management and administration of banking
transactions performed by such Participating Bank in connection with Facility A and
Facility B (including, but not limited to, commissions and fees for bank transfers and
cheques).
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|22.4 | Facility
Agents fee
|---- | --------------------

| | The
Borrower shall pay to the Facility Agent for its own account an annual agency fee as
specified in the Fee Letter entered into between the Facility Agent and the Borrower on
or about the date hereof, at the times and in the amounts specified in such letter.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|22.5 | Co-ordinating
Agents fee
|---- | -------------------------

| | The
Borrower shall pay to the Co-ordinating Agent for its own account an annual fee as
specified in the Fee Letter entered into between the Co-ordinating Agent and the Borrower
on or about the date hereof, at the times and in the amounts specified in such letter.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

59

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|22.6 | Security
Trustees fee
|---- | ----------------------

| | The
Borrower shall pay to the Security Trustee for its own account the fees specified in the
Fee Letter entered into between the Security Trustee and the Borrower on or about the
date hereof, at the times and in the amounts specified in such letter.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|22.7 | VAT
|---- | ---

| | Any
fee referred to in this Section 22 (Fees) is exclusive of any value added tax or any
other Tax which might be chargeable in connection with that fee. If any value added tax
or other Tax is so chargeable, it shall be paid by the Borrower at the same time as it
pays the relevant fee.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|23. | COSTS
AND EXPENSES
|--- | ------------------

|23.1 | Initial
costs
|---- | -------------

| | The
Borrower shall forthwith on demand pay the Lenders the amount of all third-party costs
and expenses (including legal fees) incurred by it in connection with the review,
negotiation, preparation, printing and execution of the Finance Documents and any other
agreements to which the Borrower is a party in connection with the Finance Documents at
the date of this Agreement, up to a maximum of US $75,000, plus value added tax and
out-of-pocket disbursements.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|23.2 | Subsequent
costs
|---- | ----------------

| | The
Borrower shall forthwith on demand pay the Lenders the amount of all third-party costs
and expenses (including legal fees) incurred by them in connection with:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | the
review, negotiation, preparation, printing and execution of all documents in
               connection with the Finance Documents to which an Obligor becomes a party,
other                than those Finance Documents completed prior to the making of the
first Advance                hereunder;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | any
amendment, waiver, consent or suspension of rights (or any proposal for any
               of the foregoing) requested by or on behalf of an Obligor and relating to
a                Finance Document or a document referred to in any Finance Document; and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | any
refinancing which the Borrower may seek to enter into.
| | --- | ----------------------------------------------------------

|23.3 | Interpretation,
Implementation, Administration and Enforcement costs
|---- | --------------------------------------------------------------------

| | The
Borrower shall forthwith on demand pay to the Participating Banks the amount of all costs
and reasonable out-of-pocket expenses (including legal fees) incurred by it, and
evidenced by relevant invoices, in connection with:
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | the
interpretation, implementation, administration and enforcement of, or the
               preservation of any rights under, any Finance Document; or
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | investigating
any possible Potential Default, Breach or Event of Default.
| | --- | -------------------------------------------------------------------------

60

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|24. | STAMP
DUTIES
|--- | ------------

| | The
Borrower shall pay, and forthwith on demand indemnify the Lenders against any liability
it incurs in respect of, any stamp, registration and similar tax which is or becomes
payable in connection with the entry into, registration, recording performance or
enforcement of any Finance Document.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|25. | INDEMNITIES
|--- | -----------

|25.1 | Currency
indemnity
|---- | ------------------

|(a) | If
the Participating Banks receive an amount in respect of the Borrowers
          liability under the Finance Documents or if that liability is converted into a
          claim, proof, judgment or order in a currency other than the currency (the
          contractual currency) in which the amount is expressed to be
          payable under the relevant Finance Document:
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | the
Borrower shall indemnify the Participating Banks as an independent
               obligation against any loss or liability arising out of or as a result of
the                conversion;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | if
the amount received by the Participating Banks, when converted into the
               contractual currency at a market rate in the usual course of its business
is                less than the amount owed in the contractual currency, the Borrower
shall                forthwith on demand pay to the Lenders an amount in the contractual
currency                equal to the deficit; and
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | the
Borrower shall forthwith on demand pay to the Participating Banks concerned
               any exchange costs and taxes payable in connection with any such
conversion.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The
Borrower waives any right it may have in any jurisdiction to pay any amount
          under the Finance Documents in a currency other than that in which it is
          expressed to be payable.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|25.2 | Broken
Funding Indemnity
|---- | ------------------------

|(a) | If
any Participating Bank receives or recovers all or any part of any Advance           made
by such Participating Bank otherwise than on the scheduled date of           repayment of
such amount, the Borrower shall pay, on demand, to such           Participating Bank:
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | all
accrued but unpaid interest up to the date of the relevant receipt or           recovery;
and
| | --- | -------------------------------------------------------------------------------------------------

| | (ii) | the
Make-Whole Amount.
| | ---- | ----------------------

|(b) | For
the purposes of paragraph (a) above, the Make-Whole           Amount shall
be calculated as follows:
|--- | ----------------------------------------------------------------------------------------------------------

| | (i) | the
amount of such Advance or part thereof that is being recovered or received
               by a Participating Bank (including accrued interest and linkage thereon),
               multiplied by the original Lending Rate for that Advance, less
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

61

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| | (ii) | the
amount of such Advance or part thereof that is being recovered or received
               by such Participating Bank (including accrued interest and linkage
thereon),                multiplied by the Lending Rate of the relevant Participating
Bank that would                apply for a new Advance of such amount and kind and with
the same duration as                that remaining for the Advance or part thereof that
is being recovered or                received (the Duration),
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | in
each case multiplied by the Duration.
| | ----------------------------------------

|(c) | For
the avoidance of doubt,:
|--- | ----------------------------

| | (i) | the
Duration is to be calculated in accordance with the principal repayment
          schedule; and
| | --- | ---------------------------------------------------------------------------------------------------

| | (ii) | the
Make-Whole Amount cannot be less than zero.
| | ---- | -----------------------------------------------

|25.3 | Other
Indemnities
|---- | -----------------

|(a) | The
Borrower shall forthwith on demand (which shall include details of the loss           or
liability incurred) indemnify each Participating Bank against any loss or
          liability properly incurred that the Participating Bank incurs as a consequence
          of:
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | the
occurrence of any Potential Default, Breach or Event of Default;
| | --- | --------------------------------------------------------------------

| | (ii) | the
operation of Section 21.19 (Acceleration; Other Remedies); or
| | ---- | -----------------------------------------------------------------

| | (iii) | an
Advance not being made after the Borrower has delivered a Request for the
               Advance, or any Advance (or part thereof) not being prepaid in accordance
with a                notice of prepayment.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The
Borrowers liability in each case shall be limited to the cost of funds
          borrowed, contracted for or utilised to fund or maintain the contribution of
any           Participating Bank to any amount payable under any Finance Document, any
amount           repaid or prepaid or any or all of the Advances, but shall exclude any
loss of           margin, profit or other loss or expense.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|26. | EVIDENCE
AND CALCULATIONS
|--- | -------------------------

|26.1 | Statements
and accounts
|---- | -----------------------

|(a) | Each
Finance Party shall maintain in accordance with its usual practice accounts
          evidencing the amounts from time to time lent by and owing to it hereunder,
          including:
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | the
amount of each Advance made or arising hereunder;
| | --- | -----------------------------------------------------

| | (ii) | the
amount of all principal, interest, linkage differentials and other amounts
               due from the Borrower to it hereunder; and
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | the
amount of any sum received or recovered by it hereunder.
| | ----- | ------------------------------------------------------------

|(b) | Unless
expressly provided to the contrary, any certification or determination by           a
Finance Party of a rate or amount under the Finance Documents is (as between
          such Finance Party and the Borrower), in the absence of manifest error, prima
          facie evidence of the matters to which it relates.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

62

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|(c) | In
any legal action or proceeding arising out of or in connection with the           Finance
Documents:
|--- | -------------------------------------------------------------------------------------------------------

| | (i) | the
entries made in the statements and accounts maintained pursuant to paragraph
               (a) above shall be prima facie evidence of the existence and amounts of
the                specified obligations of the Borrower; and
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | a
certificate of any Participating Bank signed by a relevant senior officer as
               to its Lending Rate for the purpose of determining the interest rate in
respect                of an Advance shall, in the absence of manifest or proven error,
constitute                conclusive evidence of such Lending Rate.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | A
certificate of a Finance Party as to: (a) the amount by which a sum
          payable to it hereunder is to be increased under Section 12 (Tax Gross-Up)
          above; or (b) the amount for the time being required to indemnify it
          against any such cost, payment or liability as is mentioned in Section 14
          (Increased Costs) above shall, in the absence of manifest or proven error, be
          prima facie evidence of the existence and amounts of the specified obligations
          of the Borrower.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|26.2 | Calculations
|---- | ------------

|(a) | The
fees payable under Section 22.2 (Commitment Fee) shall accrue from day to           day
and shall be calculated on the basis of the actual number of days elapsed           and:
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | with
respect to NIS amounts, a year of three hundred and sixty-five (365) days;           and
| | --- | ---------------------------------------------------------------------------------------------

| | (ii) | with
respect to US Dollar amounts, a year of three hundred and sixty (360) days.
| | ---- | --------------------------------------------------------------------------------

|(b) | For
the purposes of calculating the aggregate of outstanding Commitments under           each
of the Facilities:
|--- | ----------------------------------------------------------------------------------------------------------------

| | (i) | with
respect to the undrawn portion of the Facility A Commitment, the aggregate
               amount of drawn Advances shall be calculated on the basis of the Original
Dollar                Amount of each utilised Advance; and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | with
respect to the undrawn portion of the Facility B Commitment, aggregate
               amount of drawn Advances shall be calculated on the basis of the Dollar
Amount                of each utilised Advance at such time.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|27. | ADMINISTRATIVE
PARTIES
|--- | ----------------------

|27.1 | Appointment
and duties of the Facility Agent
|---- | --------------------------------------------

|(a) | Each
Participating Bank irrevocably appoints the Facility Agent to act as its           agent
under and in connection with the Finance Documents.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------

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|(b) | Each
Participating Bank irrevocably authorises the Facility Agent on its behalf           to
perform the duties and to exercise the rights, powers and discretions that           are
specifically delegated to it under or in connection with the Finance           Documents,
together with any other incidental rights, powers and discretions.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | The
Facility Agent shall not be entitled to execute (as agent for a           Participating
Bank) any Finance Document, nor to bind any Participating Bank to           any agreement
in connection with the Finance Documents.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | The
Facility Agent has only those duties which are expressly specified in the
          Finance Documents. Those duties are solely of a mechanical and administrative
          nature with respect to the provision and receipt of information and notices
from           the Borrower.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|27.2 | Relationship
|---- | ------------

| | The
relationship between the Facility Agent and each Participating Bank is that of agent and
principal only. Nothing in this Agreement constitutes the Facility Agent as trustee or
fiduciary for any other Party or any other person and the Facility Agent need not hold in
trust any moneys paid to it for a Party or be liable to account for interest on those
moneys.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|27.3 | Instructions
to the Facility Agent
|---- | ----------------------------------

| | The
Facility Agent is not authorised to act on behalf of a Participating Bank (without first
obtaining that Participating Banks consent) in any legal proceedings in relation to
any Finance Document.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|27.4 | Delegation
|---- | ----------

| | The
Facility Agent may act under the Finance Documents through its personnel and agents.
| | ----------------------------------------------------------------------------------------

|27.5 | Responsibility
for documentation
|---- | --------------------------------

| | None
of the Administrative Parties, nor any of their officers, employees or agents is
responsible to any other Party for:
| | -------------------------------------------------------------------------------------------------------------------------

| | (a) | the
execution, genuineness, validity, enforceability or sufficiency of any
               Finance Document or any other document;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------

| | (b) | the
collectability of amounts payable under any Finance Document; or
| | --- | --------------------------------------------------------------------

| | (c) | the
accuracy of any statements (whether written or oral) made in or in
               connection with any Finance Document .
| | --- | ----------------------------------------------------------------------------------------------------------------------------

|27.6 | Exoneration
|---- | -----------

|(a) | Without
limiting paragraph (b) below, the Administrative Parties will not be           liable to
any other Party for any action taken or not taken by it under or in           connection
with any Finance Document, unless directly caused by its gross           negligence or
wilful misconduct.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | No
Party may take any proceedings against any officer, employee or agent of an
          Administrative Party in respect of any claim it might have against them or any
          of them or in respect of any act or omission of any kind (including gross
          negligence or wilful misconduct) by that officer, employee or agent in relation
          to any Finance Document.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

64

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|27.7 | Information
|---- | -----------

|(a) | The
Facility Agent shall promptly forward to each of the Participating Banks the
          original or a copy of any document which is delivered to the Facility Agent by
a           Party in accordance with the terms of this Agreement.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Except
where this Agreement specifically provides otherwise, the Facility Agent           is not
obliged to review or check the accuracy or completeness of any document           it
forwards to another Party.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Except
as provided above, the Facility Agent has no duty:
|--- | ---------------------------------------------------------

| | (i) | either
initially or on a continuing basis to provide any Participating Bank with
               any credit or other information concerning the Borrower, whether coming
into its                possession before, on or after the date of this Agreement; or
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | unless
specifically requested to do so by a Participating Bank in accordance                with
a Finance Document, to request any certificates or other documents from an
               Obligor.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|27.8 | The
Administrative Parties individually
|---- | ---------------------------------------

|(a) | If
it is also a Participating Bank, each Administrative Party has the same           rights
and powers under the Finance Documents as any other Participating Bank           and may
exercise those rights and powers as though it were not also an           Administrative
Party.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Each
Administrative Party may:
|--- | ------------------------------

| | (i) | carry
on any business with an Obligor, any party to the Finance Documents or
               their respective related entities;
| | --- | ------------------------------------------------------------------------------------------------------------------------------

| | (ii) | act
as agent or trustee for, or in relation to any financing involving an
               Obligor, any party to the Finance Documents or their respective related
               entities; and
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | retain
for its own account any profits or remuneration in connection with its
               activities under this Agreement or in relation to any of the foregoing.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | If
it is also a Participating Bank, any reference in the Finance Documents to an
          Administrative Party means the administrative unit of such Administrative Party
          specifically responsible for acting in that capacity under and in connection
          with this Agreement, as referred to in Section 33 (Notices).
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | In
acting as an Administrative Party, such administrative unit shall be treated           as
a separate entity from its other divisions and departments. Any information
          acquired by an Administrative Party which, in its opinion, is acquired by it
          otherwise than in its capacity as an Administrative Party may be treated as
          confidential by such Administrative Party and will not be deemed to be
          information possessed by it in its capacity as such.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

65

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|27.9 | Indemnities
|---- | -----------

|(a) | Without
limiting the liability of the Obligors under the Finance Documents, each
          Participating Bank shall forthwith on demand indemnify each Administrative
Party           for that Participating Banks proportion of any liability or loss
incurred           by such Administrative Party in any way relating to or arising out of
its acting           as Administrative Party, except to the extent that the liability or
loss arises           directly from the Administrative Partys gross negligence or
wilful           misconduct.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | A
Participating Banks proportion of the liability set out in paragraph (a)
          above will be the proportion which its Advances bears to all the Advances on
the           date of the demand. If, however, there are no Advances outstanding on the
date           of demand, then the proportion will be the proportion which its Commitment
bears           to the aggregate of the Outstandings and the Total Commitments.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|27.10 | Compliance
|----- | ----------

|(a) | An
Administrative Party may refrain from doing anything which might, in its
          opinion, constitute a breach of Israeli law or be otherwise actionable at the
          suit of any person, and may do anything which, in its opinion, is necessary or
          desirable to comply with Israeli law.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Without
limiting paragraph (a) above, an Administrative Party need not disclose           any
information relating to the Obligors, or any of its related entities if the
          disclosure might, in its opinion, constitute a breach of Israeli law or any
duty           of secrecy or confidentiality or be otherwise actionable at the suit of
any           person.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|27.11 | Resignation
of an Administrative Party
|----- | --------------------------------------

|(a) | Notwithstanding
its irrevocable appointment, an Administrative Party may resign           by giving
notice to the Participating Banks and the Borrower, in which case it           may
forthwith appoint one of its affiliates as successor or, failing that, the
          Participating Banks may appoint a successor in such capacity.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | If
the appointment of a successor is to be made by the Participating Banks but
          they have not, within thirty (30) days after notice of resignation, appointed a
          successor Administrative Party which accepts the appointment, the resigning
          Administrative Party may appoint a successor.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | The
resignation of an Administrative Party and the appointment of any successor
          will both become effective only upon the successor Administrative Party
          notifying all the Parties that it accepts its appointment. On giving the
          notification, the successor Administrative Party will succeed to the position
of           Facility Agent, Co-ordinating Agent or Security Trustee (as the case may be)
and           the term Facility Agent, Co-ordinating
          Agent, Security Trustee will mean the successor
          Administrative Party.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | The
retiring Administrative Party shall, at its own cost, make available to its
          successor such documents and records and provide such assistance as the
          successor may reasonably request for the purposes of performing its functions
          under this Agreement.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | Upon
its resignation becoming effective, this Section 27 (Administrative           Parties)
will continue to benefit the retiring Administrative Party in respect           of any
action taken or not taken by it under or in connection with the Finance
          Documents while it was an Administrative Party, and, subject to paragraph (d)
          above, it shall have no further obligations under any Finance Document.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|(f) | No
successor Administrative Party will be appointed which is not a banking
          corporation or an affiliate thereof, in each case incorporated in the State of
          Israel.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|28. | AMENDMENTS
AND WAIVERS
|--- | ----------------------

|28.1 | Procedure
|---- | ---------

|(a) | Any
term of the Finance Documents may be amended or waived with the prior           written
consent of the Borrower and the Majority Lenders. The Facility Agent may
          effect, on behalf of the Finance Parties, an amendment or waiver to which the
          Majority Lenders have agreed.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The
Facility Agent shall promptly notify the other Parties of any amendment or
          waiver effected under paragraph (a) above, and any such amendment or waiver
          shall be binding on all the Parties.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | An
amendment which relates to the rights and/or obligations of an Administrative
          Party, or subjects an Administrative Party to any additional obligations
          hereunder may not be effected without the agreement of such Administrative
          Party.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|28.2 | Exceptions
|---- | ----------

|(a) | An
amendment or waiver which relates to one of the following may only be made           with
the consent of all the Participating Banks (other than paragraph (iii)           below
which may only be made with the consent of all the Lenders):
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | a
change in the Margin or Breach Margin;
| | --- | ----------------------------------------

| | (ii) | a
change in the commissions or fees set out in Section 22 (Fees);
| | ---- | -----------------------------------------------------------------

| | (iii) | a
change in the amount of a Lenders Relevant Percentage;
| | ----- | ---------------------------------------------------------

| | (iv) | any
change to the Total Commitments at any time or an extension of the date of
               payment of any amount to a Participating Bank under the Finance Documents;
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (v) | the
right of any Participating Bank to assign or transfer its rights or
               obligations under the Finance Documents;
| | --- | -------------------------------------------------------------------------------------------------------------------------------

| | (vi) | Section
19 (Financial Covenants), provided that the Majority Lenders shall be
               entitled to declare a waiver with respect a breach of Section 19
(Financial                Covenants) for a period of 180 days;
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (vii) | the
granting of any Security Interest by an Obligor in favour of one or more,
               but not all of, the Participating Banks;
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------

| | (viii) | a
term of a Finance Document which expressly requires the consent of each
               Participating Bank; or
| | ------ | ---------------------------------------------------------------------------------------------------------------

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| | (ix) | this
Section 28.
| | ---- | ----------------

|(b) | Notwithstanding
anything to the contrary in this Section 28, any Participating           Bank may take
action independently against the Borrower in accordance with           Section 21.19
(Acceleration; Other Remedies):
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | in
the event of non-payment of any amount due and payable by the Borrower as
               described in Section 21.2 (Non-payment), 180 days after non-payment; and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | in
the case of an Event of Default other than non-payment for which the Lenders
               have granted a waiver of 180 days, following the elapse of an additional
180-day                period.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|28.3 | Waivers
and Remedies Cumulative
|---- | -------------------------------

| | The
rights of the parties under the Finance Documents:
| | ------------------------------------------------------

| | (a) | may
be exercised as often as necessary;
| | --- | ---------------------------------------

| | (b) | are
cumulative and not exclusive of their rights under the general law; and
| | --- | ---------------------------------------------------------------------------

| | (c) | may
be waived only in writing and specifically.
| | --- | -----------------------------------------------

| | Delay
in exercising or non-exercise of any such right is not a waiver of that right.
| | ------------------------------------------------------------------------------------

|29. | CHANGES
TO THE PARTIES
|--- | ----------------------

|29.1 | Transfers
by the Borrower
|---- | -------------------------

| | The
Borrower may not assign, transfer, sell or otherwise dispose of any interest, rights or
obligations under the Finance Documents, other than with the prior written consent of
each of the Participating Banks.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|29.2 | Guarantors
|---- | ----------

|(a) | The
Borrower shall procure that each Subsidiary of the Borrower which at the
          relevant time is a Wholly-owned Subsidiary in which the Borrower has made a
          Permitted Investment, shall, as soon as possible after becoming a Wholly-owned
          Subsidiary in which the Borrower has made a Permitted Investment, become a
          Guarantor. Such Subsidiary shall become a Guarantor if:
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | the
proposed Guarantor delivers to the Facility Agent, a duly completed and
          executed Guarantee;
| | --- | ---------------------------------------------------------------------------------------------------------

| | (ii) | the
Facility Agent has received, in sufficient copies for all of the
               Participating Banks, all of the documents and other evidence listed in
Part II                of Schedule 3 (Conditions Precedent) in relation to that
Guarantor, in form and                substance satisfactory to the Participating Banks;
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | such
proposed Guarantor has executed a Guarantor Floating Charge and registered
               such Security Document at the Israeli Register of Companies and/or
Register of                Pledges; and
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (iv) | the
Borrower has created a Subsidiary Share Pledge over all of its shares in
               such proposed Guarantor in favour of the Security Trustee (on behalf of
the                Finance Parties) and registered such Security Document at the Israeli
Register                of Companies and/or the Israeli Register of Pledges.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The
Facility Agent shall promptly notify the Borrower upon being satisfied that           it
has received (in form and substance satisfactory to it) all the documents and
          other evidence listed in Part II of Schedule 3 (Conditions Precedent).
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Upon
request of the Borrower, the Facility Agent shall promptly release a           Guarantor
from its obligations and undertakings as a Guarantor as set forth           above in the
event the Guarantor ceases to be a Wholly-owned Subsidiary.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|29.3 | Repetition
of Representations
|---- | -----------------------------

| | Delivery
of a Guarantee constitutes confirmation by the relevant Subsidiary that all the
representations and warranties in Section 17 (Representations and Warranties) are true
and correct in relation to it as at the date of delivery as if made by reference to the
facts and circumstances then existing.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|29.4 | Transfers
by the Participating Banks
|---- | ------------------------------------

|(a) | A
Participating Bank (the Transferor)may, subject to
          paragraph (b) below and the terms of the Licence, at any time sell, assign,
          novate and/or transfer, in whole or in part, directly or by way of sale of
          participation, or in any other way as the Participating Bank may deem fit, any
          part of its Total Commitment (or, as the case may be, the UMB Outstandings)
          and/or any of its rights and/or obligations under this Agreement (including its
          rights as a Finance Party under the Security Document) (the TransferRights) to:
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | another
bank or financial institution or institutional investor (including
               insurance companies, pensions funds and provident funds) in Israel;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | any
overseas subsidiary or branch of any of the Participating Banks; or
| | ---- | -----------------------------------------------------------------------

| | (iii) | any
banking corporation in the United States of America,
| | ----- | --------------------------------------------------------

| | (the
Transferee).
| | -------------------

|(b) | A
transfer, sale, novation or assignment, as set out in paragraph (a) above,
          shall only be valid if:
|--- | --------------------------------------------------------------------------------------------------------------

| | (i) | the
value of the Transfer Rights is no less than US$5,000,000; and
| | --- | ------------------------------------------------------------------

| | (ii) | in
the event that the Transferee is a financial institution or institutional
               investor that either:
| | ---- | -----------------------------------------------------------------------------------------------------------------

| | (A) | holds
5% or more of the ordinary shares of any cellular operator that competes           with
the Borrower (a Competitor); or
| | --- | -------------------------------------------------------------------------------------------------------------------------------

69

---

---



| | (B) | has
the ability to appoint any member of the Board of Directors of a Competitor,
| | --- | --------------------------------------------------------------------------------

| | such
transfer, sale, novation or assignment shall be subject to the prior written consent of
the Borrower (not to be unreasonably withheld or delayed).
| | -------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | In
the event that a Transferor other than UMB sells, assigns, novates and/or
          transfers part only of its Total Commitments, the amount of the
          Transferors Relevant Percentage immediately prior to the transfer shall,
          upon the transfer, be divided pro rata between the Transferor and the
          Transferee.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | The
Borrower shall execute and do all such transfers, assignments, novations,
          assurances, acts and things as the Transferor may require for perfecting and
          completing any such assignment, transfer or novation, and releasing the
          Transferor from and imposing on the Transferee the Transferors
obligations           under this Agreement to the extent the same are transferred,
assigned or           novated. All agreements, representations and warranties made in
this agreement           shall survive any assignment made pursuant to this clause and
shall also inure           to the benefit of all Transferees.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | The
Transferor may disclose information with respect to the Borrower and the
          business activities of the Borrower, the Finance Documents and any other
          information which in the discretion of the Transferor should be disclosed to a
          potential Transferee prior to the transfer, sale, novation or assignment (the
Information), to any potential Transferee, consultants
          engaged on behalf of the Transferor or Transferee and credit rating agencies
          (the Recipient), provided that:
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | the
Transferor and the Recipient have entered into an appropriate
               confidentiality agreement with respect to the Information; and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | the
Transferor has notified the Borrower of its disclosure of Information to the
               Recipient, prior to the disclosure itself.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------

|30. | SET-OFF
|--- | -------

| | Any
Participating Bank may, without presentment, demand, protest or other notice of any kind
to the Borrower, set off any due and payable obligation of the Borrower against any
obligation (whether or not matured) owed by the Participating Bank to the Borrower
(including any moneys held by the Participating Bank for the account of the Borrower),
regardless of the place of payment, booking branch or currency of either obligation. If
the obligations are in different currencies, the Participating Bank may convert either
obligation at a market rate of exchange in its usual course of business for the purpose
of the set-off. If either obligation is unliquidated or unascertained, the Participating
Bank may set off an amount estimated by it in good faith to be the amount of that
obligation. Each Participating Bank agrees promptly to notify the Borrower after any such
set-off and application made by such Participating Bank.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|31. | SEVERABILITY
|--- | ------------

| | If
a provision of any Finance Document is or becomes illegal, invalid or unenforceable in
any jurisdiction, that shall not affect:
| | ----------------------------------------------------------------------------------------------------------------------------------

70

---

---



| | (a) | the
validity or enforceability in that jurisdiction of any other provision of
               the Finance Documents; or
| | --- | ----------------------------------------------------------------------------------------------------------------------

| | (b) | the
validity or enforceability in other jurisdictions of that or any other
               provision of the Finance Documents.
| | --- | -----------------------------------------------------------------------------------------------------------------------------

| | Where
provisions of any applicable law resulting in such illegality, invalidity or
unenforceability may be waived, they are hereby waived by Borrower and each Finance Party
to the full extent permitted by applicable law so that the Finance Documents shall be
deemed valid and binding agreements, in each case enforceable in accordance with their
respective terms.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|32. | COUNTERPARTS
|--- | ------------

| | This
Agreement may be executed in any number of counterparts, and this has the same effect as
if the signatures on the counterparts were on a single copy of this Agreement.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|33. | NOTICES
|--- | -------

|33.1 | Giving
of notices
|---- | -----------------

| | All
notices or other communications under or in connection with the Finance Documents shall
be given in writing and, unless otherwise stated may be made by letter or facsimile. Any
such notice will be deemed to be given as follows:
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | if
by letter, when delivered personally or on actual receipt;
| | --- | -------------------------------------------------------------

| | (b) | if
by facsimile, when received in legible form.
| | --- | -----------------------------------------------

| | However,
a notice given in accordance with the above but received on a non-working day or after
business hours in the place of receipt will only be deemed to be given on the next
working day in that place.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|33.2 | Addresses
for notices
|---- | ---------------------

|(a) | The
address and facsimile number of the Borrower are:
|--- | -----------------------------------------------------

| | Partner
Communications Company Ltd.            8 Amal Street            Afeq Industrial Zone
           Rosh Haayin 48103            Israel            Facsimile:  0547 815 282
           Attention: Chief Financial Officer
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | with
a copy to:
| | ---------------

| | Gross,
Kleinhendler, Hodak, Halevy, Greenberg & Co.            One Azrieli Center
           Tel-Aviv 67021            Israel            Facsimile: (03) 607 4422
           Attention: Richard J. Mann, Adv.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

71

---

---



| | or
such other as the Borrower may notify to the Facility Agent by not less than five
Business Days notice.
| | -----------------------------------------------------------------------------------------------------------

|(b) | The
address and facsimile number of the Participating Banks are:
|--- | ----------------------------------------------------------------

|Bank Hapoalim B.M.       
45 Rothschild Blvd.      
Tel-Aviv                 
ISRAEL                   
Attention:  Shay Sasson  
Facsimile: 03-567-3023   Israel Discount Bank Ltd.
27 Yehuda Halevi Street  
Tel Aviv, Israel         
Attention: Carol Shaked  
Facsimile:  03-514-5210 | Bank Leumi Le-Israel B.M.
34 Yehuda Halevi Street
Tel-Aviv
ISRAEL
Attention:  Dafna Dothan
Facsimile:  03-514-9017United Mizrahi Bank Ltd.
7 Jabotinsky Street
Ramat Gan, Israel
Attention: Ofir Morad
Fax: 03-755-9079
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | or
such other as the Borrower may notify to the Facility Agent by not less than five
Business Days notice.
| | -----------------------------------------------------------------------------------------------------------

|(c) | The
address and facsimile number of the Facility Agent are:
|--- | -----------------------------------------------------------

| | Bank
Hapoalim           45 Rothschild Blvd.           Tel-Aviv           ISRAEL
| | -------------------------------------------------------------------------------

| | Attention: | Shay Sasson
| | ---------- | -----------

| | Facsimile: | 03-567-3023
| | ---------- | -----------

| | or
such other as the Facility Agent may notify to the other Parties by not less than 5
Business Days notice.
| | -------------------------------------------------------------------------------------------------------------

|(d) | The
address and facsimile number of the Co-ordinating Agent are:
|--- | ----------------------------------------------------------------

| | Bank
Leumi Le-Israel B.M.            34 Yehuda Halevi Street            Tel-Aviv
           ISRAEL
| | --------------------------------------------------------------------------------------------------

| | Attention: | Dafna Dothan
| | ---------- | ------------

| | Facsimile: | 03-514-9017
| | ---------- | -----------

| | or
such other as the Co-ordinating Agent may notify to the other Parties by not less than 5
Business Days notice.
| | ------------------------------------------------------------------------------------------------------------------

72

---

---



|(e) | The
address and facsimile number of the Security Trustee are:
|--- | -------------------------------------------------------------

| | Bank
Leumi Le-Israel B.M.            34 Yehuda Halevi Street       
     Tel-Aviv
           ISRAEL
| | ---------------------------------------------------------------------------------------------------

| | Attention: | Dafna Dothan
| | ---------- | ------------

| | Facsimile: | 03-514-9017
| | ---------- | -----------

| | or
such other as the Security Trustee may notify to the other Parties by not less than 5
Business Days notice.
| | ---------------------------------------------------------------------------------------------------------------

|34. | INFORMATION
|--- | -----------

| | Without
derogating from Section 29.4(e) (Transfers by the Participating Banks) above, the
Borrower hereby agrees, with respect to itself and any other Obligor, that the Finance
Parties may at any time, amongst themselves, disclose to each other any information in
respect of:
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | Requests
received, Advances made and payments received from or by the Borrower,                as
the case may be, under the Facilities; and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | any
other information in respect of the business of the Borrower, the Finance
               Documents and obligations as the Participating Bank, disclosing the same,
deems                appropriate.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|35. | LANGUAGE
|--- | --------

| | All
documents to be furnished, delivered or provided and all other communications to be given
or made under or in connection with the Finance Documents shall be in Hebrew or English.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|36. | GOVERNING
LAW AND JURISDICTION
|--- | ------------------------------

| | This
Agreement is governed by and shall be construed in accordance with the laws of the State
of Israel and each Party hereby irrevocably submits to the jurisdiction of the courts of
Tel-Aviv-Jaffa in connection with any dispute arising out of or in connection with this
Agreement.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|37. | WAIVER
OF IMMUNITY
|--- | ------------------

| | Each
Obligor irrevocably and unconditionally:
| | ---------------------------------------------

| | (a) | agrees
that if a Finance Party brings proceedings against it or its assets in
               relation to a Finance Document, no immunity from those proceedings
(including,                without limitation, suit, attachment prior to judgment, other
attachment, the                obtaining or judgement, execution or other enforcement)
will be claimed by or on                behalf of itself with respect to its assets;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

73

---

---



| | (b) | waives
any such right of immunity which it or its assets now has or may
               subsequently acquire; and
| | --- | ----------------------------------------------------------------------------------------------------------------

| | (c) | consents
generally in respect of any such proceedings to the giving of any                relief
or the issue of any process in connection with those proceedings,
               including, without limitation, the making, enforcement or execution
against any                assets whatsoever (irrespective of its use or intended use) of
any order or                judgment which may be made or given in those proceedings.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# This space has been left
intentionally blank.

74

---

---



This Agreement has been entered into
on the date stated at the beginning of this Agreement.

# SIGNATURES

# BORROWER

# PARTNER COMMUNICATIONS
COMPANY LTD.

|By: 
Name:Title:
|------------------------------

LENDERS

BANK HAPOALIM B.M.

|By: 
Name:Title:
|------------------------------

BANK LEUMI LE-ISRAEL B.M.

|By: 
Name:Title:
|------------------------------

ISRAEL DISCOUNT BANK LTD.

|By: 
Name:Title:
|------------------------------



---

---



UMBUNITED MIZRAHI BANK B.M.

|By: 
Name:Title:
|------------------------------

FACILITY AGENT

BANK HAPOALIM B.M.

|By: 
Name:Title:
|------------------------------

CO-ORDINATING AGENT

BANK LEUMI LE-ISRAEL B.M.

|By: 
Name:Title:
|------------------------------

SECURITY TRUSTEE

BANK LEUMI LE-ISRAEL B.M.

|By: 
Name:Title:
|------------------------------



---

---



# SCHEDULE 1

# LENDERS AND RELEVANT
PERCENTAGES

|Lender                    | Relevant Percentage (%)
|------------------------- | -----------------------
|Bank Hapoalim B.M         | 40.91                  
|Bank Leumi Le-Israel B.M  | 40.91                  
|Israel Discount Bank Ltd. | 18.18                  

77

---

---



# SCHEDULE 2

# FACILITY A REPAYMENT
SCHEDULE

# PART I

# FACILITY A REPAYMENT
SCHEDULE PRIOR TO EXERCISE OF OPTION

|Months after the Commencement Date | Facility A Commitment
|---------------------------------- | ---------------------
|0                                  | $425,000,000         
|12                                 | $386,750,000         
|15                                 | $370,812,500         
|18                                 | $354,875,000         
|21                                 | $338,937,500         
|24                                 | $323,000,000         
|27                                 | $302,812,500         
|30                                 | $282,625,000         
|33                                 | $262,437,500         
|36                                 | $242,250,000         
|39                                 | $222,062,500         
|42                                 | $201,875,000         
|45                                 | $181,687,500         
|48                                 | $161,500,000         
|51                                 | $141,312,500         
|54                                 | $121,125,000         
|57                                 | $100,937,500         
|60                                 | $80,750,000          
|63                                 | $60,562,500          
|66                                 | $40,375,000          
|69                                 | $20,187,500          
|72                                 | 0                    

78

---

---



# SCHEDULE 2

# FACILITY A REPAYMENT
SCHEDULE

# PART II

# FACILITY A REPAYMENT
SCHEDULE FOLLOWING EXERCISE OF OPTION

|Date               | Facility A Commitment
|------------------ | ---------------------
|1st September 2005 | $150,000,000         
|1st September 2006 | $150,000,000         
|1st September 2007 | $100,000,000         
|1st September 2008 | $50,000,000          
|1st September 2009 | $0                   

79

---

---



# SCHEDULE 2

# PART III

# UMB REPAYMENT SCHEDULE

UMB
Outstandings based on Lending Rate of 4.3%

|UMB Repayment Dates | UMB Outstandings(NIS) | Amount of principal of UMB Facility to be repaid (NIS)
|------------------- | --------------------- | ------------------------------------------------------
|31/12/2002          | 41,300,000.00         | -                                                     
|31/03/2003          | 41,300,000.00         | -                                                     
|30/06/2003          | 41,300,000.00         | -                                                     
|30/09/2003          | 41,300,000.00         | -                                                     
|31/12/2003          | 41,300,000.00         | -                                                     
|31/03/2004          | 41,300,000.00         | -                                                     
|30/06/2004          | 41,300,000.00         | -                                                     
|29/09/2004          | 40,913,457.00         | 386,543.00                                            
|31/12/2004          | 38,582,831.00         | 2,330,626.00                                          
|31/03/2005          | 36,250,580.00         | 2,332,251.00                                          
|30/06/2005          | 33,919,954.00         | 2,330,626.00                                          
|30/09/2005          | 31,371,694.00         | 2,548,260.00                                          
|30/12/2005          | 28,821,810.00         | 2,549,884.00                                          
|31/03/2006          | 26,273,550.00         | 2,548,260.00                                          
|30/06/2006          | 23,725,290.00         | 2,548,260.00                                          
|29/09/2006          | 21,151,044.00         | 2,574,246.00                                          
|31/12/2006          | 18,578,422.00         | 2,572,622.00                                          
|30/03/2007          | 15,612,761.00         | 2,965,661.00                                          
|29/06/2007          | 12,614,617.00         | 2,998,144.00                                          
|30/09/2007          | 9,681,438.00          | 2,933,179.00                                          
|31/12/2007          | 6,715,777.00          | 2,965,661.00                                          
|31/03/2008          | 3,358,700.00          | 3,357,077.00                                          
|30/06/2008          | -                     | 3,358,700.00                                          

80

---

---



UMB Outstandings
based on Lending Rate of 5.0%

|UMB Repayment Dates | UMB Outstandings
(NIS) | Amount of principal of UMB Facility to be repaid
(NIS)
|------------------- | ---------------------- | ------------------------------------------------------
|31/12/2002          | 80,900,000.00          | -                                                     
|31/03/2003          | 80,900,000.00          | -                                                     
|30/06/2003          | 80,900,000.00          | -                                                     
|30/09/2003          | 80,900,000.00          | -                                                     
|31/12/2003          | 80,900,000.00          | -                                                     
|31/03/2004          | 80,900,000.00          | -                                                     
|30/06/2004          | 80,900,000.00          | -                                                     
|29/09/2004          | 80,142,825.00          | 757,175.00                                            
|31/12/2004          | 75,577,506.00          | 4,565,319.00                                          
|31/03/2005          | 71,009,005.00          | 4,568,501.00                                          
|30/06/2005          | 66,443,686.00          | 4,565,319.00                                          
|30/09/2005          | 61,452,058.00          | 4,991,628.00                                          
|30/12/2005          | 56,457,249.00          | 4,994,809.00                                          
|31/03/2006          | 51,465,621.00          | 4,991,628.00                                          
|30/06/2006          | 46,473,993.00          | 4,991,628.00                                          
|29/09/2006          | 41,431,463.00          | 5,042,530.00                                          
|31/12/2006          | 36,392,114.00          | 5,039,349.00                                          
|30/03/2007          | 30,582,865.00          | 5,809,249.00                                          
|29/06/2007          | 24,709,988.00          | 5,872,877.00                                          
|30/09/2007          | 18,964,367.00          | 5,745,621.00                                          
|31/12/2007          | 13,155,118.00          | 5,809,249.00                                          
|31/03/2008          | 6,579,150.00           | 6,575,968.00                                          
|30/06/2008          | -                      | 6,579,150.00                                          

81

---

---



# SCHEDULE 3

# PART I

# CONDITIONS PRECEDENT
DOCUMENTS REQUIRED TO BE DELIVERED BY THE BORROWER

|1. | Constitutional
documents
|-- | ------------------------

| | A
copy of the Memorandum and Articles of Association of the Borrower.
| | ---------------------------------------------------------------------

|2. | Corporate
authorisations
|-- | ------------------------

|(a) | Copies
of resolutions of the board of directors and/or other governing body of           the
Borrower approving the terms of, and transactions contemplated by, the           Finance
Documents to which they are party;
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | a
specimen of the signature of each person authorised to sign the Finance
          Documents on behalf of the Borrower and to sign and/or despatch all documents
          and notices to be signed and/or despatched by them under or in connection with
          the Finance Documents to which it is party;
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | a
certificate of the Borrower confirming that borrowing or guaranteeing or
          securing, as appropriate, the Total Commitments in full would not cause any
          borrowing, guarantee, security or similar limit binding on it to be exceeded,
          other than any limit set out in Section 19 (Financial Covenants); and
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | a
certificate of an authorised signatory of the Borrower certifying that each
          copy document specified in this Schedule 3, Part I (Conditions Precedent
          Documents) is true and correct, complete and in full force and effect.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | Existing
Facility Agreement
|-- | ---------------------------

|(a) | Confirmation
of each Existing Outstanding Amount Certificate provided to the           Borrower by
each of the Lenders with outstanding Advances under the Existing           Facility
Agreement and confirmed by the Borrower.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Evidence
satisfactory to the Facility Agent, that all legal fees incurred by the
          Participating Banks and any other of the finance parties under the Existing
          Facility Agreement, have been paid in full.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Evidence
satisfactory to the Facility Agent, that all outstanding commitment           fees up to
the Commencement Date, owing to the finance parties under the           Existing Facility
Agreement, have been paid in full.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | Copy
of a termination agreement duly executed by each of the parties to the           Existing
Facility Agreement.
|--- | ------------------------------------------------------------------------------------------------------------------

82

---

---



|4. | Finance
Documents
|-- | -----------------

| | Originals
of each of each Finance Document to which the Borrower is a party, duly executed by all
parties to them in form and substance satisfactory to the Facility Agent.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | Business
Plan
|-- | -------------

| | Copy
of the Business Plan.
| | --------------------------

|6. | Authorisations
|-- | --------------

| | Receipt
of a copy of all authorisations, permits, approvals and consents required for the
consummation of the transactions contemplated under the Finance Documents, if any.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. | Security
matters
|-- | ----------------

|(a) | Evidence,
in form and substance satisfactory to the Security Trustee, of the           cancellation
or release of:
|--- | ------------------------------------------------------------------------------------------------------------------

| | (i) | the
Security Interests created over shares in the Borrower with respect to the
               Existing Facility,
| | --- | ----------------------------------------------------------------------------------------------------------------

| | (ii) | the
Subordination Agreement dated 13 August, 1998 made between the Founder
               Shareholders of the Borrower, the Borrower, the Security Trustee and Bank
               Hapoalim, as Coordinating Agent;
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | the
assignment by way of security of the hedging agreements entered into between
               the Borrower and the Security Trustee on 10 September 1998;
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iv) | the
Second-Ranking Debenture dated 5 September, 2001 granted by the Borrower in
               favour of, amongst others, the Participating Banks; and
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------

| | (v) | all
other Security Interests in favour of creditors of the Existing Facility
               Agreement that are not also Finance Parties hereunder.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Evidence,
in form and substance satisfactory to the Security Trustee, that all
          endorsements required to be made to the insurance policies of the Borrower are
          made within 30 days of the date of this Agreement.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Evidence,
in form and substance satisfactory to the Security Trustee, that the           Security
Interests created by the Security Documents entered into on or about           the date
of the Agreement have been duly perfected and registered at any           relevant
companies or other register.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | Evidence,
in form and substance satisfactory to the Security Trustee, that each           relevant
Person has provided the Participating Banks with consents and such           other forms
as may be necessary for the Security Trustee (without any further           action on the
part of any other person) to register and perfect each Security           Interest
created by each Security Document.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8. | General
|-- | -------

|(a) | A
copy of the most recent audited Financial Statements of the Borrower.
|--- | -----------------------------------------------------------------------

83

---

---



|(b) | A
list of the Founder Shareholders and their holdings in the Borrower at the           date
of this Agreement.
|--- | --------------------------------------------------------------------------------------------------------------

|9. | Legal
Opinions
|-- | --------------

| | Legal
opinions, in form and substance satisfactory to the Facility Agent from:
| | ------------------------------------------------------------------------------

| | (a) | Gross,
Kleinhendler, Hodak, Halevy, Greenberg & Co., Israeli legal advisers
               to the Borrower, addressed to each Finance Party; and
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Herzog,
Fox & Neeman, Israeli legal advisers to the Finance Parties,                addressed
to each Finance Party.
| | --- | --------------------------------------------------------------------------------------------------------------------

84

---

---



# PART II

# CONDITIONS PRECEDENT
DOCUMENTS REQUIRED TO BE DELIVERED BY EACH GUARANTOR

|1. | Guarantee
|-- | ---------

| | A
Guarantee duly executed by the Guarantor.
| | -------------------------------------------

|2. | Constitutional
documents
|-- | ------------------------

| | A
copy of the Memorandum and Articles of Association of the Guarantor.
| | ----------------------------------------------------------------------

|3. | Corporate
authorisations
|-- | ------------------------

|(a) | Copies
of resolutions of the board of directors and/or other governing body of           the
Guarantor approving the terms of, and transactions contemplated by, the           Finance
Documents to which it is party;
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | a
specimen of the signature of each person authorised to sign the Finance
          Documents on behalf of the Guarantor and to sign and/or despatch all documents
          and notices to be signed and/or despatched by them under or in connection with
          the Finance Documents to which it is party;
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | a
certificate of an authorised signatory of the Guarantor certifying that each
          copy document specified in this Schedule 3, Part II (Conditions Precedent
          Documents) is true and correct, complete and in full force and effect; and
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | a
certificate of the Guarantor confirming that borrowing or guaranteeing or
          securing, as appropriate, the Total Commitments in full and would not cause any
          borrowing, guarantee, security or similar limit binding on it to be exceeded,
          other than any limit set out in Section 19 (Financial Covenants).
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | Security
Documents
|-- | ------------------

|(a) | Originals
of each Security Document to which the Guarantor is party, duly           executed by all
parties to them in form and substance satisfactory to the           Security Trustee.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

85

---

---



|(b) | Evidence,
in form and substance satisfactory to the Security Trustee, that the           Security
Interests created by the Security Document to which the Guarantor is           party have
been duly perfected and registered at any relevant companies or           other
register.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Evidence,
in form and substance satisfactory to the Security Trustee, that each           relevant
Person has provided the Security Trustee with consents and such other           forms as
may be necessary for the Security Trustee (without any further action           on the
part of any other person) to register and perfect each Security Interest
          created by each Security Document.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | Legal
Opinion
|-- | -------------

| | Upon
request of the Facility Agent, a legal opinion, in form and substance satisfactory to the
Facility Agent from the Israeli legal advisers to the Borrower, addressed to each Finance
Party.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

86

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# SCHEDULE 4

# FORM OF EXISTING
OUTSTANDING AMOUNT CERTIFICATE

|To: | Partner
Communications Company Ltd.
|--- | -----------------------------------

|From: | [Lender]
|----- | --------

|Date: | [                   ]
|----- | ---------------------

US$550,000,000 Facility Agreement
between, amongst others, Partner Communications Company Ltd. (the Borrower),
Bank Hapoalim B.M., Bank Leumi Le-Israel B.M. and Israel Discount Bank Ltd. (the
Lenders) dated 14th April, 2005 (the Facility
Agreement)

|1. | Capitalised
terms used but not defined in this Existing Outstanding Amount           Certificate
shall have the meanings ascribed to such terms in the Facility           Agreement
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | This
is an Existing Outstanding Amount Certificate, issued in accordance with
          Section 4.1 (Conditions Precedent) of the Facility Agreement.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------

|3. | As
at the Commencement Date, the Existing Outstanding Amount owed to us by you           is:
|-- | --------------------------------------------------------------------------------------------

[                   ]

|4. | Such
amount is required to be repaid as follows:
|-- | ------------------------------------------------

| | [insert
repayment date or dates]
| | --------------------------------

---

[Lender]

87

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# SCHEDULE 5

# FORM OF REQUEST

|To: | [Lender]
|--- | --------

|From: | Partner
Communications Company Ltd.
|----- | -----------------------------------

|Date: | [                   ]
|----- | ---------------------

Dear Sirs,

US$550,000,000 Facility Agreement
between, amongst others, Partner Communications Company Ltd. (the Borrower),
Bank Hapoalim B.M., Bank Leumi Le-Israel B.M. and Israel Discount Bank Ltd. (the
Lenders) dated 14th April, 2005 (the Facility
Agreement)

|1. | Capitalised
terms used but not defined in this Request shall have the meanings           ascribed to
such terms in the Facility Agreement
|-- | -----------------------------------------------------------------------------------------------------------------------------------------

|2. | We
refer to the Facility Agreement. This is a Request, issued in accordance with
          Section 5.2 of the Facility Agreement.
|-- | ---------------------------------------------------------------------------------------------------------------------------------

|3. | We
wish to borrow a [Facility B Advance/Facility A Advance] on the following
          terms:
|-- | ---------------------------------------------------------------------------------------------

| | (a) | Drawdown
Date: [                   ]
| | --- | ------------------------------------

| | (b) | Amount/currency:
[                   ]
| | --- | --------------------------------------

| | (c) | Repayment
Date: [                   ]
| | --- | -------------------------------------

| | (d) | Interest
Period: [one month/three months/one week]
| | --- | --------------------------------------------------

| | (e) | Interest
Rate: [                   ].
| | --- | -------------------------------------

|4. | We
confirm that, other than as permitted pursuant to Section 5.5(a) (Relevant
          Percentages) of the Facility Agreement, the Facility A Outstandings with
respect           to each Lender do not exceed or fall short of each Lenders
Relevant           Percentage of the aggregate of the Facility A Outstandings.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | Our
payment instructions are: [                   ]
|-- | ---------------------------------------------------

|6. | We
confirm that each condition precedent under the Facility Agreement which must
          be satisfied on the date of this Request is so satisfied.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------

|7. | This
Request is irrevocable.
|-- | ----------------------------

|By: 
Name:Title:on behalf of Partner Communications Company Ltd.
|------------------------------------------------------------------------------

88

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# SCHEDULE 6

# FORM OF GUARANTEE

|To: | [Facility
Agent]; and            [Security Trustee] (as trustee for the Finance Parties).
|--- | -----------------------------------------------------------------------------------------

|From: | [Wholly-owned
Subsidiary] of [address], with company registration no. [                   ]
               (the            "Guarantor"); and            Partner Communications
Company Ltd. (the "Borrower")
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Date: | [                   ]
|----- | ---------------------

US$550,000,000 Facility Agreement
between, amongst others, the Borrower, Bank Hapoalim B.M., Bank Leumi Le-Israel B.M.,
Israel Discount Bank Ltd. and United Mizrahi Bank Ltd. dated 14th April, 2005 (the
Facility Agreement)

Capitalised terms used but not
defined in this Guarantee shall have the meanings ascribed to such terms in the Facility
Agreement.

This is a Guarantee, issued in
accordance with Section 29.2 (Guarantors) of the Facility Agreement.

|1. | Guarantee
and indemnity
|-- | -----------------------

| | The
Guarantor hereby irrevocably and unconditionally (jointly and severally with any other
Guarantors):
| | -------------------------------------------------------------------------------------------------------

| | (a) | guarantees
to each Finance Party due and punctual performance by the Borrower of                all
its obligations under the Finance Documents to which it is a party;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | undertakes
with each Finance Party that whenever the Borrower does not pay any                amount
when due under or in connection with any Finance Document, the Guarantor
               shall immediately on demand pay that amount as if it was the principal
obligor;                and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | indemnifies
each Finance Party immediately on demand against any cost, loss or
               liability suffered by that Finance Party if any obligation guaranteed by
it is                or becomes unenforceable, invalid or illegal. The amount of the
cost, loss or                liability shall be equal to the amount which that Finance
Party would otherwise                have been entitled to recover.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | Continuing
guarantee
|-- | --------------------

| | This
guarantee is a continuing guarantee and will extend to the ultimate balance of sums
payable by the Borrower under the Finance Documents, regardless of any intermediate
payment or discharge in whole or in part.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | Reinstatement
|-- | -------------

| | If
any payment by the Borrower or any discharge given by a Finance Party (whether in respect
of the obligations of the Borrower or any security for those obligations or otherwise) is
avoided or reduced as a result of insolvency or any similar event:
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

89

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| | (a) | the
liability of the Borrower shall continue as if the payment, discharge,
               avoidance or reduction had not occurred; and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------

| | (b) | each
Finance Party shall be entitled to recover the value or amount of that
               security or payment from the Borrower, as if the payment, discharge,
avoidance                or reduction had not occurred.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | Waiver
of defences
|-- | ------------------

| | The
obligations of the Guarantor under this Guarantee will not be affected by any act,
omission, matter or thing which, but for this clause, would reduce, release or prejudice
any of its obligations under this Guarantee (without limitation and whether or not known
to it or any Finance Party) including:
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | any
time, waiver, consent or other indulgence granted to, or composition with,
               the Borrower or other person;
| | --- | ---------------------------------------------------------------------------------------------------------------------------

| | (b) | the
release of the Borrower or any other person under the terms of any
               composition or arrangement with any Obligor;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------

| | (c) | the
taking, variation, compromise, exchange, renewal or release of, or refusal
               or neglect to perfect, take up or enforce, any rights against, or security
over                assets of, the Borrower or other person or any non-presentation or
               non-observance of any formality or other requirement in respect of any
               instrument or any failure to realise the full value of any security;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | any
incapacity or lack of power, authority or legal personality of or
               dissolution or change in the members or status of the Borrower or any
other                person;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | any
amendment (however fundamental) to or any variation, waiver or release of,
               any obligation of the Borrower under the Finance Documents or replacement
of a                Finance Document or any other document or security;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) | any
unenforceability, illegality or invalidity of any obligation of any person
               under any Finance Document or any other document or security; or
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g) | any
insolvency or similar proceedings.
| | --- | --------------------------------------

|5. | Immediate
recourse
|-- | ------------------

| | The
Guarantor waives any right it may have of first requiring any Finance Party (or any
trustee or agent on its behalf) to proceed against or enforce any other rights or
security or claim payment from any person (including the Borrower) before claiming from
the Guarantor under this Guarantee. This waiver applies irrespective of any law or any
provision of a Finance Document to the contrary.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. | Appropriations
|-- | --------------

| | Until
all amounts which may be or become payable by the Borrower under or in connection with
the Finance Documents have been irrevocably paid in full, each Finance Party (or any
trustee or agent on its behalf) may:
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

90

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| | (a) | refrain
from applying or enforcing any other moneys, security or rights held or
               received by that Finance Party (or any trustee or agent on its behalf) in
               respect of those amounts, or apply and enforce the same in such manner and
order                as it sees fit (whether against those amounts or otherwise) and the
Guarantor                shall not be entitled to the benefit of the same; and
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | hold
in an interest-bearing suspense account any moneys received from the
               Guarantor or on account of the Guarantors liability under this
Guarantee.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. | Deferral
of Guarantors rights
|-- | ------------------------------

| | Until
all amounts which may be or become payable by the Borrower under or in connection with
the Finance Documents have been irrevocably paid in full and unless the Security Trustee
otherwise directs (in accordance with the terms of the Intercreditor Agreement), the
Guarantor will not exercise any rights which it may have by reason of performance by it
of its obligations under this Guarantee:
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | to
be indemnified by the Borrower;
| | --- | ----------------------------------

| | (b) | to
claim any contribution from any other Guarantor; and/or
| | --- | ----------------------------------------------------------

| | (c) | to
take the benefit (in whole or in part and whether by way of subrogation or
               otherwise) of any rights of the Finance Parties under the Finance
Documents or                of any other guarantee or security taken pursuant to, or in
connection with, the                Finance Documents by any Finance Party.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8. | Additional
security
|-- | -------------------

| | This
guarantee is in addition to and is not in any way prejudiced by any other guarantee or
security now or subsequently held by or on behalf of any Finance Party.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9. | Waiver
by Guarantor
|-- | -------------------

| | Without
derogating from any other provisions of this Agreement which exclude the application of,
or constitute a waiver by the Guarantor of, certain defences or rights under the
Guarantee Law, 1967 (the Guarantee Law) (which defences or
rights would, but for such provision, have been available to the Guarantor), the
Guarantor hereby waives all rights and defences under the Guarantee Law and confirms that
the provisions of the Guarantee Law affording such rights or defences to a guarantor
shall not apply to this Guarantee.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10. | Miscellaneous
|--- | -------------

|(a) | Sections
24 (Stamp Duties), 28.3 (Waivers and Remedies Cumulative), 31
               (Severability), 32 (Counterparts), 33 (Notices), 35 (Language) and 36
(Governing                Law and Jurisdiction) of the Facility Agreement shall be
incorporated herein, mutatis mutandis.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

91

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|(b) | The
address of the Guarantor mentioned above is the address of the Guarantor for
               the purpose of this document, or any other address in Israel which the
Guarantor                notifies to the Security Trustee in writing.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | The
expression Finance Parties shall include all their
               successors, representatives and assigns.
|--- | ----------------------------------------------------------------------------------------------------------------

|[Guarantor] | Partner Communications Company Ltd.
|------------------------- | -------------------------------------------------

92

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# SCHEDULE 7

# FORM OF SUBSIDIARY
SHARE PLEDGE

93

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# SCHEDULE 8

# FORM OF GUARANTOR
FLOATING CHARGE

94

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