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                                                                     Exhibit 4.4


UNOFFICIAL TRANSLATION

                                   TRUST DEED

         MADE AND ENTERED INTO IN TEL AVIV, THIS 29TH DAY OF MARCH, 2007

BY AND BETWEEN:   ELBIT MEDICAL IMAGING LTD.
                  2 WEIZMANN ST., TEL AVIV
                  TEL.: 03-6086000; FAX: 03-6086050
                  (HEREINAFTER: THE "COMPANY")
                                                              OF THE FIRST PART;

AND:              HERMETIC TRUST (1975) LTD.
                  113 HAYARKON ST., TEL AVIV
                  TEL.: 03-5274867; FAX: 03-5271736
                  (HEREINAFTER: THE "TRUSTEE").
                                                              OF THE OTHER PART;

WHEREAS   the Company wishes to raise funds against an issue of the Company's
          (Series D) Bonds which are rated A1 by Midrug Ltd., as of the date of
          this Deed, all as set out in, and subject to, the provisions of
          section 2 of this Trust Deed; and

WHEREAS   the Company hereby declares that there is no impediment under any law
          and/or agreement to effect a private placement of the Company's
          (Series D) Bonds; and

WHEREAS   the Trustee is a company registered in Israel, engaged in trusts; and

WHEREAS   the Trustee has declared that there is no impediment under law to its
          entering into this Trust Deed with the Company and that it complies
          with the requirements and capacity conditions laid down in the Law, as
          defined below, to serve as trustee pursuant to this Trust Deed; and

WHEREAS   the Company has applied to the Trustee to serve as trustee for the
          Bondholders and the Trustee has agreed thereto, all subject and
          pursuant to the terms of this Trust Deed;

NOW, THEREFORE, IT IS AGREED, DECLARED AND STIPULATED BY AND BETWEEN THE PARTIES
AS FOLLOWS:

1.   INTRODUCTION, INTERPRETATION AND DEFINITIONS

     1.1  The preamble to this Trust Deed and the appendixes attached hereto,
          constitute an integral part hereof.


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     1.2  The division of this Trust Deed into sections as well as the section
          headings herein are for convenience and ease of reference purposes
          only and shall not be used for the purpose of interpretation.

     1.3  Everything stated in this Trust Deed in the plural shall also mean the
          singular and vice versa; everything stated in the masculine shall also
          mean the feminine and vice versa; and the term "person" shall also
          mean a corporation, all unless there is any contrary expressed and/or
          implied provision and/or unless the context or the contents otherwise
          require.

     1.4  In this Trust Deed and in the Bonds, the following terms shall have
          the meaning set out opposite them, unless the contents or the context
          otherwise require.

          "THIS DEED" - This Trust Deed, including the appendixes attached
          hereto, constituting an inseparable part hereof;

          "(SERIES D) BONDS" or "SERIES BONDS" or the "BONDS" - a series of
          registered (Series D) Bonds, unlimited in amount, of NIS 1 par value
          each of the Company, the terms of which are set out in this Deed, to
          be issued from time to time at the Company's exclusive discretion.

          The "TRUSTEE" - The Trustee referred to at the beginning of this Deed
          and/or anyone serving from time to time as trustee for the Bondholders
          hereunder;

          "REGISTER" - The Register of Bondholders as set forth in section 23
          herein;

          "BONDHOLDER" or "BONDOWNER" - the person named at such time in the
          Register as owner of a Bond of the Series Bonds, and in the event of a
          number of joint holders, the joint holder whose name appears first in
          the Register;

          "BOND CERTIFICATE" - A (Series D) Bonds Certificate in such wording as
          set out in Appendix A hereto.

          The "LAW" or the "SECURITIES LAW" - the Securities Law, 5728 - 1968
          and its regulations as shall be in effect from time to time.

          "PRINCIPAL" - the total par value amount of (Series D) Bonds to be
          issued by the Company under this Deed.

          "CONSUMER PRICE INDEX" or "INDEX" - The price index known as the
          Consumer Price Index including fruit and vegetables and which is
          published by the Central Bureau of Statistics, including such index
          even if published by any other official entity or institution, as well
          as any official index superseding the same, whether or not it is based
          on the same data on which the existing index is based. If another
          index supersedes it, published by such body or institution, where such
          body or institution has not prescribed the ratio


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          between it and the index that has been superseded, such ratio shall be
          prescribed by the Central Bureau of Statistics. In the event of such
          ratio not being prescribed as aforesaid, then the Trustee, in
          consultation with such economic experts as it shall select, shall fix
          the ratio between the other index and the superseded index.

          The "KNOWN INDEX" at any given time - the Index last published before
          such date.

          "BASE INDEX" - the index for February 2007, as published on March
          2007, 2006.

          "PAYMENT INDEX" - The index known on the due date of any payment on
          account of principal and/or interest.

          "BUSINESS DAY" - A day on which most of the banks in Israel are open
          for the execution of transactions.

          "SPECIAL RESOLUTION" - As defined in section 6(e) of Appendix B
          hereto.

          "STOCK EXCHANGE" - The Tel Aviv Stock Exchange Ltd.

          "RATING COMPANY" - A company approved by the Supervisor of the Capital
          Market at the Ministry of Finance.

2.   ISSUE OF BONDS

     The Company will issue registered (Series D) Bonds, unlimited in amount,
     payable in 8 equal semi-annual installments, on April 1 and February 20 of
     each of the years 2013 to 2020, inclusive (the first installment to be
     effected on April 1, 2013 and the last installment to be effected on April
     1, 2020), bearing interest at a rate of 5% per annum, payable in
     semi-annual installments on October 1 and April 1 of each of the years 2007
     to 2020 (the first installment to be effected on October 1, 2007 and the
     last installment to be effected on April 1, 2020), linked (principal and
     interest) to the Consumer Price Index, all pursuant to the terms set forth
     in the Bond attached as Appendix A hereto.

     The Bonds are offered within a transaction that does not constitute a
     public offering in the United States, within the meaning thereof in the
     1933 US Securities Law, as may be amended from time to time (hereinafter:
     the "US LAW"). The Bonds will not be submitted for registration with the US
     Securities Authority or any other securities authority of any state in the
     United States. The Bonds may not be offered or sold under US Law by any
     holder other than in accordance with exemption from the registration
     requirements in the United States, or within a transaction which is not
     subject to the registration requirements, under the US Law, or any
     securities law applicable in the pertinent state in the United States.


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     Increase in the series - The Company may issue, at any time and from time
     to time, without the approval of either the Bondowners or the Trustee,
     including to the Company's subsidiary, pursuant to the provisions of any
     law, additional Bonds with identical terms to those of the (Series D)
     Bonds, at such a price and in such a manner as the Company finds fit.
     Provided that this Deed will apply to all such additional Bonds to be
     issued by the Company and that they shall be deemed as the (Series D) Bonds
     first issued. Notwithstanding anything to the contrary anywhere in this
     Deed, an additional issue of (Series D) Bonds exceeding the scope rated by
     a Rating Company within the framework of this Series (as of the date of
     this Deed, the sum totals NIS 620 million), shall be effected subject to
     another rating by a Rating Company and subject further that such additional
     issue of Bonds of the same Series shall not adversely affect the rating of
     the Bonds first issued under this Deed, as then in effect. The Company
     shall obtain the Stock Exchange's approval for such an increase and shall
     publish an immediate report of any increase in the Series Bonds.

     (Series D) Bonds will be issued without discount. Should the discount rate
     determined for the (Series D) Bonds, following the increase of (Series D)
     Bonds, be different from the discount rate of the (Series D) Bonds existing
     in circulation at that time, the Company shall turn to the Tax Authority,
     shortly after the increase of the Bond Series, in order to obtain its
     approval that, in the matter of the withholding tax from the discount fees
     for (Series D) Bonds, a uniform discount rate be determined for the (Series
     D) Bonds in accordance with formula weighting the different discount rates
     in that series, if any.

     In the event of the said approval being obtained, the Company shall
     calculate the weighted discount rate for all the (Series D) Bonds and shall
     issue a press release (or an immediate report if the Company is a public
     company) regarding the uniform weighted discount rate and shall withhold
     tax at the payment dates of the (Series D) Bonds, according to the said
     weighted discount rate an in accordance with the provisions of law. If the
     said approval is not obtained, the Company will issue a press release (or
     an immediate report in the event of the Company being a public company),
     shortly after receiving notice from the Tax Authority that the said
     approval will not be granted and that the uniform discount rate will be the
     highest discount rate created for the (Series D) Bonds. The Company will
     withhold tax at source at the time of the payment of the bonds from that
     series, in accordance with such reported discount rate.

     Therefore, cases may arise in which the Company will withhold tax at source
     for discount fees at a rate higher than the discount fees determined for
     those who held (Series D) Bonds before the increase of this Series. In such
     a case a tax payer holding (Series D) Bonds before the increase of the
     Series D and up until payment of the (Series D) Bonds, will be entitled to
     file a tax return to the Tax Authority and to receive a refund of the tax
     withheld from the discount fees, if qualified for such refund in law.


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     Deposit of additional securities - The Company reserves the right to issue,
     at any time, without approval of the Trustee and/or the Bondholders, other
     Bonds or Series Bonds or other securities of any nature or type whatsoever,
     at such terms as the Company shall find fit, whether preferable, equal or
     inferior to the terms of the Bonds.

     Listing the Bonds for trading in the TACT - Institutional system - subject
     to the provisions of the Stock Exchange rules, the Company will register
     the Bonds in the name of Israel Discount Bank Nominees Ltd. and will list
     the Bonds, insofar as this will be under its control, with the Stock
     Exchange clearing house, which will provide clearing services to the Bonds,
     as well as within the framework of the trading system for institutional
     investors operated by the Stock Exchange (hereinafter: "TACT -
     INSTITUTIONAL"). The Company shall bear all costs involved in the
     registration with the TACT - Institutional system. In the event that the
     Bonds are listed for trading on the TACT - Institutional, the following
     provisions will apply:

     A.   Any payment effected by the Company to the Stock Exchange clearing
          house and/or to the nominee company in settlement of the principal
          and/or the interest and/or additional payments, will be deemed as
          payment to holders.

     B.   Each Bondholder may exercise his rights as Bondholder, provided that
          the Company and/or the Trustee, as the case may be, receives from the
          nominee company, a confirmation designating the name of the Bondholder
          and the total sum for the principal of the Bonds held by the nominee
          company for such Bondholder.

     C.   Bondholders will collaborate with the Company, as may be required,
          with a view to implementing the aforesaid, including, without
          limitation, returning the original Bonds certificates issued in their
          name, if any, to the Company, for the purpose of issuing Bonds
          certificates in the name of the nominee company.

     D.   The Company will advise the Trustee of the listing of the Bonds for
          trading on the TACT - Institutional, and will act pursuant to all the
          pertinent provisions and guidelines of the Stock Exchange with respect
          to the TACT - Institutional, including the date of the Ex-day, the Cum
          day and manners of computing the interest. The provisions of this
          Trust Deed and the provisions of the terms of the Bonds will be
          revised, insofar as and to the extent required pursuant to the
          provisions of the Stock Exchange and its guidelines, to such wording
          as shall be concluded with the Trustee, without the Company having to
          obtain any approval whatsoever from the Bondholders and/or the
          Trustee.

     E.   It is hereby clarified, to remove any doubts, that subject to the
          provisions of the Law and the Stock Exchange rules, no person other
          than an institutional investor as set forth in the First Schedule to
          the Law, may trade the Bonds within the framework of the TACT -
          Institutional system as aforesaid.


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     F.   Listing for trading in the TACT - Institutional system is not listing
          for trading on the Stock Exchange within the meaning below.

     Listing the Bonds for trading on the Stock Exchange - The Company will do
     its utmost and will adopt all measures reasonably required, subject to the
     provisions of any law and the Stock Exchange rules, to list the Bonds for
     trading on the Stock Exchange such that no restrictions will apply on
     resale under the provisions of Section 15.C. of the Law, by the
     Bondholders, up to August 30, 2007 (hereinafter: the "EFFECTIVE DATE FOR
     LISTING"). In the event of the failure to list the Bonds for trading on the
     Stock Exchange by the Effective Date for Listing as aforesaid, the Company
     may, at its sole discretion, act for the listing for trading of the Bonds
     also after the Effective Date, up to the date of the settlement of the
     total principal of the Bonds as aforesaid.

     In any event of listing the Bonds for trading on the Stock Exchange as
     aforesaid, the provisions of the Trust Deed and the provisions of the terms
     of the Bonds will be revised, insofar as and to the extent required under
     the provisions and guidelines of the Stock Exchange and/or the Securities
     Authority, to such wording as will be concluded with the Trustee, without
     the Company having to obtain any approval from the Bondholders and/or the
     Trustee, provided that the Trustee is satisfied that the revision required
     by the Stock Exchange and/or the Securities Authority does not adversely
     affect the Bondholders' rights. Upon the listing of the Bonds for trading
     on the Stock Exchange, the Bonds will no longer be traded in the TACT -
     Institutional system. The Company will publish an immediate report
     concerning the revisions made in the Trust Deed, insofar as and to the
     extent so made.

     So long as the Bonds are not listed for trading on the Stock Exchange, the
     following provisions will apply:

     A.   The Company will pay an increment of 0.5% to the annual interest rate
          paid for the balance of the unsettled principal of the Bonds
          (hereinafter: the "INTEREST INCREMENT"), by the publishing date of the
          prospectus concerning the listing of the Bonds for trading on the
          Stock Exchange (hereinafter, in this section only: the "PROSPECTUS
          PUBLICATION DATE"), inclusive.

          It shall be clarified that in the event that the Bonds are listed for
          trading on the Stock Exchange during an Interest Period, as defined in
          section 4 of the terms listed overleaf of the Bond certificate
          (hereinafter: "INTEREST PERIOD"), the Company will pay to each
          Bondholder at the closing of the trading day on the TACT -
          Institutional (one trading day before the termination of the trading
          of the bonds on the TACT - Institutional (hereinafter, in this section
          only: the "EFFECTIVE DATE") a one-off payment at the rate of the
          Interest Increment for the balance of the unsettled principal of the
          Bonds, for the period commencing on the date of allocation of the
          Bonds and ending on the Prospectus Publication Date. The Interest
          Increment will be calculated at 365 days per annum and will be paid
          according to the number of days from the commencement of the Interest
          Period preceding the publication date of the


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          Prospectus up to the Prospectus Publication Date (inclusive). The
          Company will give notice of the Effective Date to the Stock Exchange
          at least four trading days prior to the Effective Date. The Company
          will further publish an immediate report concerning the date of
          payment of the Interest Increment as aforesaid.

     B.   The Company may not perform a distribution, as defined in Section 1 of
          the Companies Law, 5759 - 1999 (hereinafter: the "COMPANIES LAW")
          which does not comply with the provisions of Section 302(A) of the
          Companies Law, other than upon receipt of the approval of the general
          meeting of the Bondholders for such distribution, by a majority of
          100% of the Bondholders voting at such meeting.

     C.   Subject to the provisions of subsection 7.2 below, the Trustee may
          declare all or any part of the unsettled balance of the Bonds
          immediately due and payable, and shall be compelled to do so if so
          required by a special resolution adopted by the general meeting of the
          Bondholders, all upon the occurrence of one or more of the following:

          (i)  The rating of the Bonds has fallen below the Baa2 investment
               level rating (corresponding to the BBB investment level rating of
               Ma'alot - The Israel Securities Rating Co. Ltd).

          (ii) The holdings of the Europe Israel (MMS) Ltd. Company, the
               Company's parent company, have fallen below 25% of the Company's
               issued capital.

     It is hereby clarified and stressed that immediately upon the listing of
     the Bonds for trading on the Stock Exchange, all the Company's obligations
     set out in sections A-C above will be cancelled, they shall have no effect
     and none of the Bondholders shall have any contention and/or demand and/or
     claim with respect thereto.

3.   ACQUISITION OF BONDS ON THE PART OF THE COMPANY AND A SUBSIDIARY

     3.1  The Company reserves the right to acquire, at any time, Bonds of the
          Series Bonds at any price it finds fit, without prejudice to the duty
          to settle the Bonds held by others apart from the Company.

     3.2  The Bonds that will be acquired by the Company will be cancelled, and
          if listed for trading on the Stock Exchange or in the TACT -
          Institutional system, as set out in section 2 above, shall also be
          delisted from trading on the Stock Exchange or the trading in the TACT
          - Institutional system, as the case may be, and the Company shall not
          be entitled to reissue them.

     3.3  The Company's subsidiary may acquire and/or sell Bonds of the Series
          Bonds, from time to time, either on the Stock Exchange or off-floor,
          including by means of an issue by the Company. The Bonds to be held as
          aforesaid by a subsidiary will be deemed as being an asset of the
          subsidiary, and if listed for trading, they will not be delisted from
          trading on the Stock


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          Exchange, and will be transferable similar to the other (Series D)
          Bonds. The votes to which such subsidiary will be entitled, by virtue
          of its holdings in the Bonds, will not be counted for the purpose of
          determining the existence of a quorum at general meetings of
          Bondholders, and the Bonds held by the subsidiary will not confer on
          it voting rights at such general meetings, so long as the Bonds are
          held by such subsidiary.

     3.4  Nothing in the foregoing section 3 above, per se, shall bind the
          Company and/or the Company's subsidiary and/or the Bondholders, to
          acquire Bonds or sell the Bonds in their possession.

4.   THE COMPANY'S UNDERTAKINGS

     The Company hereby undertakes to pay, on the designated dates, the
     principal, interest and linkage differentials (including arrears interest,
     if any, pursuant to the provisions of section 6 of the terms listed
     overleaf of the Bond attached as Appendix A hereto) payable under the terms
     of the Bond and to comply with all the other terms and obligations imposed
     on it, pursuant to the terms of the Bond and hereunder. The Company hereby
     undertakes to pay, on the designated dates, the principal, the interest and
     the linkage differentials (including arrears interest, if any, pursuant to
     the provisions of section 6 of the terms listed overleaf of the Bond
     attached hereto as Appendix A), payable under the terms of the Bonds and to
     comply with all other terms and obligations imposed on it under the terms
     of the Bonds and hereunder. Where the designated date for payment of the
     (Series D) Bonds or the designated date for any interest installment occurs
     on any day other than a business day, the payment date or the date of such
     installment shall be postponed to the business day immediately subsequent
     thereto, and no interest shall be paid with respect to such delay.

5.   SECURITIES:

     5.1  The Bonds are not secured by means of any lien.

     5.2  The Company may encumber all or any of its property, by means of any
          encumbrance and in any fashion whatsoever, in favor of any third party
          whatsoever, without having to obtain any approval from the Trustee
          and/or the Bondholders.

6.   RATING OF THE BONDS

     The Bonds shall be equal inter se, (pari passu) without any preference or
     priority of one over the other.

7.   IMMEDIATE SETTLEMENT

     7.1  Subject to the provisions of subsection 7.2 below, the Trustee may
          declare all or any part of the unsettled balance of the Bonds
          immediately due and payable, and shall be compelled to do so if so
          required by a special resolution


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          adopted by the general meeting of the Bondholders, all upon the
          occurrence of one or more of the following:

          7.1.1 Should the Company fail to settle any sum payable by it under
               the Bonds up to the end of seven (7) days from the due date
               thereof.

          7.1.2 If a temporary liquidator has been appointed by a court or if a
               court has entered a temporary liquidation order to the Company
               and such appointment or order is not cancelled by the end of 45
               days from its commencement date, or if the Company adopts a valid
               resolution of the winding up thereof (other than winding up for
               the purpose of a merger with another company and/or a change in
               the Company's structure, provided that the Trustee is satisfied
               that the Bondholders' rights are secured), or where a permanent
               liquidator has been appointed for the Company or if a final
               winding up order has been entered against it.

          7.1.3 Upon the occurrence of any of the following, where the Trustee
               or a special resolution adopted at a general meeting of the
               Bondholders determine that same poses a risk to the rights of the
               Bondholders:

               (a)  Lienholders on the Company's property realize their liens on
                    all, or on a substantial part of the Company's assets, at
                    the discretion of the Trustee.

               (b)  An attachment is imposed on substantial assets of the
                    Company, at the discretion of the Trustee, and such lien is
                    not removed by the end of forty five (45) days from the date
                    of the imposition thereof.

               (c)  An act of execution is instituted against substantial assets
                    of the Company, at the discretion of the Trustee, and such
                    act is not cancelled by the end of forty five (45) days from
                    the date of the institution thereof.

               (d)  A receiver is appointed to all and/or a substantial part of
                    the Company's assets, at the discretion of the Trustee, and
                    such appointment is not cancelled by the end of forty five
                    (45) days from the commencement thereof.

               (e)  The Company discontinues its installments and/or gives
                    notice of its intention to discontinue its installments
                    and/or there is a material concern that it is liable to
                    discontinue its installments and/or terminate its business
                    and/or intends to terminate its business and/or where it is
                    reasonable that it would terminate its business.


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               (f)  A motion for stay of proceedings against the Company under
                    Section 350 of the Companies Law, 5759 - 1999, is submitted
                    to the court by a third party that is not the Company, and
                    such motion is not cancelled within forty five (45) days
                    from the commencement date thereof.

               (g)  Should the Company violate or fail to comply with any
                    material conditions or obligations incorporated in the Bonds
                    and/or in this Deed, where the Trustee deems same as
                    prejudicing the rights of the Bondholders, and the Company
                    has not fulfilled such condition within seven (7) days from
                    the Date the Trustee has given it a written warning to that
                    effect.

               (h)  Another series of the Bonds issued by the Company is
                    declared due and payable.

               (i)  All the Company's securities are delisted from trading on
                    the Stock Exchange and from trading on the Nasdaq
                    concurrently.

     7.2  Notwithstanding the contents of subsection 7.1 above, the Trustee
          shall not declare the Bonds immediately due and payable, unless the
          following conditions are satisfied:

          7.2.1 The Trustee has given a prior written warning to the Company of
               its intention to act as aforesaid, and the Company failed to
               comply with the contents of such warning by the end of fifteen
               (15) days from the date of receipt thereof. In the said warning,
               the Company is required to cause the cancellation and/or
               termination of the occurrence, as set out in subsection 7.1
               above, in connection with which the said warning was given, it
               will be clarified that the warning period is counted after the
               period stipulated in subsection 7.1.3 above has expired.

          7.2.2 The Trustee, at its reasonable discretion, believes that any
               delay in declaring the Company's debt payable puts the rights of
               the Bondholders at risk.

          7.2.3 Notwithstanding the contents of sections 7.1 and 7.2.1 above,
               should the Trustee find that a delay in declaring the Bonds
               immediately due and payable, as set out in subsections 7.1 and
               7.2.1 above, will significantly risk the rights of the
               Bondholders, the Trustee may bring forward each of the periods
               set out in subsections 7.1 and 7.2.1 above, as it finds
               necessary, with a view to preventing the said risk to the rights
               of the Bondholders, provided that it gives written notice thereof
               to the Company and no response is received from the Company to
               its satisfaction within two (2) business days from the date of
               such warning.


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     7.3  After the Bonds are declared immediately due and payable as aforesaid,
          the Company shall perform from time to time and at any time it is
          required to do so by the Trustee, all the acts reasonably required to
          allow the exercise of all powers vested by the Trustee. Inter alia, it
          shall cause the performance of all acts reasonably required pursuant
          to the law to validate the Trustee's powers.

8.   CLAIMS AND PROCEEDINGS ON THE PART OF THE TRUSTEE

     8.1  The Trustee may, at any time after the Bonds are declared due and
          payable, at its discretion and without giving another notice, adopt
          all such proceedings, including legal proceedings, as it finds fit,
          subject to the provisions of any law, to protect the rights of the
          Bondholders and implement the provisions of the Trust Deed and it may
          convene a special meeting of the Bondholders to this end. The Trustee
          shall be compelled to do so at the demand of the meeting of the
          Bondholders adopted by a special resolution.

          Nothing in the foregoing shall prejudice and/or derogate from the
          Trustee's right to institute legal and/or other proceedings, either on
          its own initiative or at the demand of the meeting of the Bondholders
          adopted by a special resolution, even if the Bonds have not been
          declared immediately due and payable, all with a view to protecting
          the Bondholders and subject to the provisions of any law.

     8.2  The Trustee may, before resorting to such proceedings, convene a
          general meeting of the Bondholders, to determine, in a special
          resolution, the type of proceedings to be adopted to exercise their
          rights under this Deed and the Bonds. The Trustee may further
          reconvene general meetings of the Bondholders for the purpose of
          receiving instructions in respect of the conducting of such
          proceedings. In such cases, the Trustee shall act without delay and on
          the first practicable and reasonable date.

     8.3  Subject to the provisions of this Deed, the Trustee may, but shall not
          be obligated to, convene a general meeting of the Bondholders at any
          time, with a view to discussing and/or receiving its instructions on
          any matter pertaining to this Deed, provided that the convening of the
          meeting shall be performed by the Trustee in such cases without any
          delay and on the first practicable and reasonable date.

     8.4  The Trustee may, but shall not be obligated to, at its sole
          discretion, withhold any act on its part under this Deed, for the
          purpose of an application to the general meeting of the Bondholders
          and/or the court, until such time as it receives instructions from the
          general meeting of the Bondholders and/or instructions from the court
          on how to proceed. The application to the general meeting of the
          Bondholders and/or to the court will be effected in such cases without
          delay and on the first practicable and reasonable date.


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     8.5  Subject to the provisions of subsection 8.6 below, the Trustee shall
          be obligated to act as set out in subsection 8.1 above, should it be
          so required by a special resolution adopted at the general meeting of
          the Bondholders, unless it finds that, under the circumstances, it is
          not just and/or reasonable to do so and it has applied to the
          pertinent court for respective instructions on the first reasonable
          date.

     8.6  The Trustee shall be entitled to indemnification from the Bondholders
          and/or the Company for reasonable expenses incurred and/or to be
          incurred by it, as the case may be, with respect to acts performed
          and/or to be performed by it, by virtue of its duties under the terms
          of the Trust Deed and/or under law and/or pursuant to instructions of
          a competent authority and/or any law and/or at the demand pursuant to
          any resolution adopted at a general meeting of the Bondholders and/or
          the Company. Notwithstanding the foregoing, it is hereby clarified and
          agreed that the Company shall not indemnify the Trustee for expenses
          incurred and/or that may be incurred by it with respect to acts
          performed and/or which may be performed at the demand of the
          Bondholders for any reason whatsoever and the Bondholders shall not
          indemnify the Trustee for expenses incurred and/or to be incurred by
          it with respect to acts performed and/or to be performed by it at the
          Company's demand for any reason whatsoever. The right to
          indemnification set out in this subsection 8.6, shall apply upon the
          following conditions:

          8.6.1 The expenses are reasonable.

          8.6.2 The Trustee has acted in good faith, has not been negligent and
               such act was performed in its capacity as trustee.

          8.6.3 The Trustee may not demand indemnification in advance for its
               expenses in connection with a pressing matter.

     8.7  Subject to the provisions of subsection 8.6 above, the Trustee may
          refrain from adopting any measure as aforesaid in subsection 8.6
          above, until such time as it receives, to its satisfaction, an
          indemnity letter from all or any of the Bondholders, as the case may
          be, in connection with any liability for damages and/or expenses
          liable to be caused to the Trustee and the Company or to any of them,
          due to the performance of such act, other than in circumstances where
          a pressing act is required, and where refraining from the performance
          thereof up to the receipt of the indemnify letter as aforesaid, shall
          cause damage and/or loss to the Bondholders.

     8.8  To remove any doubts, it is hereby clarified, that nothing in any of
          the aforesaid provisions shall prejudice and/or derogate from the
          Trustee's right which is hereby vested in it, to apply, at its
          exclusive discretion, to legal instances also before the Bonds are
          declared due and payable, for the purpose of obtaining any order
          concerning the trust affairs.


                                       12

<PAGE>

9.   RECEIPTS HELD IN TRUST

     All receipts collected by the Trustee in consequence of declaring the Bonds
     immediately due and payable, including receipts arising from proceedings
     instituted by it, if any, against the Company, shall be held by it in trust
     and it shall use same for such purposes and according to such priorities as
     follows:

     First, for settlement of all expenses, payments, levies and obligations
     incurred by the Trustee, imposed on it, or caused in the course of, or in
     consequence of, acts in implementation of the trust or otherwise, with
     respect to the terms of this Deed, including its fee (but without
     derogating from the Company's undertakings pursuant to section 17 below).
     Second - to pay, to the Bondholders, the arrears interest due to them and
     subject to the linkage terms under the Bonds pari passu and pro rata to the
     sums payable to each of them without preference or priority with respect to
     any of them, and without any preference as to the time priority of the
     issuance of the Bonds by the Company or otherwise; third - to make such
     payments to the Bondholders, on account of the principal owed to them under
     the Bonds held by them pari passu and subject to the linkage terms under
     the Bonds, all whether the due date for settlement of any installment on
     account of the principal as aforesaid has fallen due or not, pro rata to
     the sums owing to them, without any preference as to the time priority of
     the issuance of the Bonds by the Company or otherwise. The surplus, if any,
     shall be paid by the Trustee to the Company or its successors, as the case
     may be. Tax will be withheld from the payments to the Bondholders to the
     extent such should be deducted under any law.

10.  POWER TO WITHHOLD DISTRIBUTION OF FUNDS

     10.1 Notwithstanding the provisions of section 9 above, in the event that
          the monetary sum obtained in consequence of the institution of the
          proceedings as aforesaid, which at any time is available for
          distribution, as set out in such section, is less than ten (10)
          percent of the unsettled principal balance of the Bonds plus the
          interest thereon (subject to the linkage terms) (hereinafter: the
          "MINIMUM SUM") the Trustee shall not be obligated to distribute same,
          and it may invest such sum, in whole or in part, in such investments
          as are permitted hereunder and substitute such investments from time
          to time by other permitted investments under this Deed, all as it
          finds fit. Notwithstanding the foregoing, a special resolution at the
          meeting of the Bondholders may instruct the Trustee to distribute, to
          the Bondholders, any such amount, even where the cumulative sum as
          aforesaid is less than the Minimum Sum.

     10.2 Where such investments, including accruals thereon, together with
          other funds received by the Trustee for the purpose of the payment
          thereof to the Bondholders, total, if at all, such amount as is
          sufficient to pay at least ten (10) percent of the unsettled principal
          balance of the Bonds (subject to the linkage terms), the Trustee shall
          pay same to the Bondholders as set out in section 9 above. In the
          event that, within a reasonable period of time, the


                                       13

<PAGE>

          Trustee does not have a sufficient sum to pay at least ten (10)
          percent of the unsettled balance of the principal of such Bonds, the
          Trustee may distribute the funds held by it to the Bondholders.

11.  NOTICE OF DISTRIBUTION AND DEPOSIT WITH THE TRUSTEE

     11.1 The Trustee shall give notice to the Bondholders of the date and the
          place of effecting any installment of the installments set out in
          sections 9 and 10 above, in a notice to be delivered to them in the
          manner designated in section 21 below, not less than ten (10) days and
          not more than twenty (20) days in advance.

          After the date designated in the notice, the Bondholder shall be
          entitled to interest thereon, at the rate designated in the Bonds,
          only in respect of the unsettled balance of the principal (if any)
          after deduction of the amount paid or offered to be paid to them as
          aforesaid.

     11.2 Any sum payable to a Bondholder which is has not been actually paid on
          the date designated for payment for any reason beyond the Company's
          control, while the Company was willing to pay same, shall cease to
          bear interest and linkage differentials as of the date designated for
          payment thereof, while the Bondholder shall be entitled only to such
          payments as he would have been entitled to on the date designated for
          payment of such installment on account of the principal, interest and
          linkage differentials.

     11.3 The Company shall deposit, with the Trustee, the sum of the
          installment not paid in a timely fashion, as set out in subsection
          11.2 above, not later than fifteen (15) business days as of the date
          designated for such installment, and shall give notice of such
          deposit, and such deposit shall be deemed as settlement of such
          installment, and, in the event of the settlement of everything owing
          for the Bond, also as the redemption of the Bond.

     11.4 The Trustee shall invest, within the framework of trust accounts in
          its name and for its benefit, such funds as are transferred to it as
          set out in subsection 11.3 above, in such investments as are permitted
          to the Trustee under this Deed. In the event that the Trustee acts as
          aforesaid, it shall only owe, to those eligible for such amounts, the
          consideration received from the realization of the investments, less
          the expenses related to the said investment and to the management of
          the trust accounts, as well as the charges, and less the obligatory
          payment applicable to the trust account. From such funds, the Trustee
          shall transfer, to the Bondholders, the sums to which they are
          entitled, as soon as practicable after proof and confirmations are
          presented to the Trustee of their entitlement to such amounts, to the
          Trustee's full satisfaction, and less its expenses.


                                       14

<PAGE>

     11.5 The Trustee shall hold such funds and shall invest them in the said
          manner, up to the end of one year from the final settlement date of
          the Bonds. After such date the Trustee shall transfer, to the Company,
          such amounts as are set out in subsection 11.4 above, including
          profits arising from their investment, less its expenses, to the
          extent remaining in its possession on such date. The Company shall
          hold such amounts in trust for such Bondholders as are entitled to
          such sum, and in respect of the sums transferred to it by the Trustee
          as aforesaid the provisions of subsection 11.4 above shall apply to
          it, mutatis mutandis.

          The Company shall confirm to the Trustee, in writing, the holding of
          the amounts and the receipt thereof on behalf of the Bondholders, and
          shall indemnify the Trustee for any claim and/or expense and/or damage
          of any type whatsoever incurred by it in the wake of, and due to, the
          transfer of the funds as aforesaid, unless the Trustee has acted
          negligently.

          The Company shall hold such funds in trust on behalf of the
          Bondholders entitled thereto for six (6) additional years from the
          date of the transfer thereof by the Trustee. Funds not demanded from
          the Company by a Bondholder up to the elapsing of seven (7) years from
          the date of the final settlement date of the Bonds, shall be
          transferred to the Company, and the Company shall be entitled to use
          the remaining funds for any purpose whatsoever.

12.  RECEIPT FROM THE BONDHOLDERS

     12.1 A receipt from a Bondholder for any payment on account of the
          principal, the interest and the linkage differentials paid to him by
          the Trustee in connection with the Bond, shall serve as absolute
          exemption of the Trustee and the Company in connection with the very
          performance of the payment of the sums designated in the receipt.

     12.2 A receipt from the Trustee as to the deposit of any installment on
          account of the principal, the interest and the linkage differentials
          with the Trustee for the benefit of the Bondholders as set out in
          subsection 11.3 above, shall be deemed as a receipt from the
          Bondholder for the purpose of the provisions of subsection 12.1 above,
          with respect to the exemption of the Company in connection with the
          performance of the payment of the sums designated in the receipt.

     12.3 Funds distributed as aforesaid in section 11 above, shall be deemed as
          payment on account of the settlement of the Bonds.

13.  PRESENTATION OF A BOND TO THE TRUSTEE AND REGISTRATION WITH RESPECT TO
     PARTIAL INSTALLMENT

     13.1 The Trustee may demand from a Bondholder to present to the Trustee,
          upon the payment of any interest or partial installment of principal,
          interest and


                                       15

<PAGE>

          linkage differentials pursuant to sections 9, 10 and 11 above, the
          Bonds certificates for which the installments are made.

     13.2 The Trustee may register, in the Bond certificate, a note with respect
          to the sums paid as aforesaid and as to the date of payment thereof.

     13.3 The Trustee may, in any special case, at its discretion, waive the
          presentation of a Bond certificate after an indemnity undertaking
          and/or sufficient security, to its satisfaction, has been given to it
          by the Bondholder, for damages liable to be caused due to failure to
          register such note, all as it finds fit.

     13.4 Notwithstanding the aforesaid, the Trustee may, at its discretion,
          keep records in any other manner, with respect to such partial
          installments.

14.  INVESTMENT OF FUNDS

     All funds which the Trustee is entitled to invest under this Deed, shall be
     invested by it, in accounts at one of the five (5) leading banks in Israel,
     in its name or for its benefit, in such investments as the laws of the
     State of Israel allow trust funds to invest therein, as it finds fit, all
     subject to the terms of this Trust Deed, provided that any investment in
     securities shall be in such securities as have been rated by a rating
     company approved by the Commissioner of the Capital Market with identical
     rating to that of the Bonds on the date of the execution of this Trust
     Deed.

15.  COMPANY'S UNDERTAKINGS TO THE TRUSTEE

     The Company hereby undertakes to the Trustee, so long as the Bonds have not
     been fully settled, as follows:

     15.1 To continue to conduct its business in a regular and appropriate
          manner and to maintain and conduct its assets in a good and orderly
          condition.

     15.2 To regularly pay all the obligatory payments and taxes applicable, if
          any, to its assets.

     15.3 To maintain orderly books of account in accordance with accepted
          accounting principles, to maintain the books and documents used as
          their references, and to allow any authorized representative of the
          Trustee to review, at any reasonable time to be coordinated in advance
          with the Company, any book and/or document as aforesaid which the
          Trustee seeks to review. In this context, an authorized representative
          of the Trustee means a person designated by the Trustee for the
          purpose of such review, by means of a written notice on the part of
          the Trustee to be given to the Company prior to the review as
          aforesaid, and which shall also contain the Trustee's approval whereby
          such designated representative is obligated to the Trustee to keep
          confidential the information disclosed to such designated
          representative in his capacity on behalf of the Trustee. The Trustee
          shall treat as confidential any


                                       16

<PAGE>

          information contained in a book and/or document reviewed by the
          Trustee's representative as aforesaid.

     15.4 To insure its assets pursuant to principles of regular business
          procedures pursuant to which assets of such type are covered, and to
          comply with all the terms of the insurance and to present to the
          Trustee a certification of issuance of insurance policies, as
          aforesaid, upon demand.

     15.5 To give a written notice to the Trustee immediately upon learning, and
          not later than two (2) business days after learning, of any event of
          imposition of an attachment on the Company's assets the cumulative
          value of which on such date amounts to 10% or more of the total
          consolidated balance sheet of the Company, pursuant to the Company's
          last consolidated financial statements and in any event of appointment
          for the Company's assets, at such cumulative value, a receiver, a
          special administrator and/or temporary or permanent liquidator, and to
          adopt at its expense all measures required to remove such attachment
          or to cancel the receivership, liquidation or administration, as the
          case may be.

     15.6 To advise the Trustee in writing, immediately upon learning thereof,
          and not later than two (2) business days from learning of it, of the
          occurrence of any of the events set out in subsections 7.1.1, 7.1.2
          and 7.1.3 above.

     15.7 To deliver to the Trustee, upon its demand, a copy of any report that
          it is compelled to submit to the Securities Authority, on the same
          date of submission thereof to the Authority, and a copy of any
          document that the Company transfers to its shareholders or to the
          Bondholders and the particulars of any information that it otherwise
          transfers to them. The Company shall further transfer to the Trustee
          additional information with respect to the Company at the Trustee's
          reasonable demand, and any information transferred by the Trustee
          shall be maintained in confidence by the Trustee.

     15.8 To give a confirmation to the Trustee, at its demand, that all
          payments that have fallen due have been effected to the Bondholders.

     15.9 To act with a view that the Bonds be rated by a rating company
          approved by the Commissioner of the Capital Market, pursuant to the
          rules and provisions prescribed in the Income Tax Regulations (Rules
          for Approval and Management of Provident Funds), 5724 - 1964,
          Insurance Business (Control) Regulations (Ways of Investing an
          Insurer's Capital and Reserves and Management of His Obligations),
          5761 - 2001, as shall be amended from time to time up to the date of
          settlement of the Bonds in full and to advise the Trustee of any
          decline in the rating of the Bonds.

     15.10 To allow the Trustee to participate at meetings of the Company's
          shareholders, without conferring a voting right on it.


                                       17

<PAGE>

     15.11 The Trustee's undertaking, as set out in this section 15 above, shall
          not apply to any transfer of information to the meeting of the
          Bondholders which, in the Trustee's reasonable opinion, will be
          required by the Bondholders for the purpose of adopting a resolution
          in respect of their rights or for the purpose of giving an account to
          the Bondholders at the Trustee's reasonable discretion.

     It is hereby clarified that failure to act on the part of the Trustee
     and/or the Bondholders in view of the failure to comply with any obligation
     on the part of the Company under this Deed, shall not be deemed as being a
     waiver on the part of the Bondholders and/or the Trustee of any right, but
     only as a limited consent to the special occasion on which it was granted.

16.  OTHER AGREEMENTS

     Subject to the provisions of the Law and the restrictions imposed on the
     Trustee under law, the fulfillment of its capacity as Trustee, under this
     Deed, or its very status as Trustee, shall not prevent the Trustee from
     entering into various agreements with the Company or entering into
     transactions with the Company in the ordinary course of its business,
     provided that such engagements and/or transactions shall not cause the
     Trustee to loose its capacity under Section 35.E. of the Law to serve as
     Trustee for the Bondholders.

17.  TRUSTEE'S FEE

     The Trustee's fee shall be as set out in Appendix C hereto, constituting an
     integral part of this Deed.

18.  SPECIAL POWERS

     18.1 The Trustee may, as part of the fulfillment of the Trust affairs under
          this Deed, act in accordance with the opinion and/or advice of any
          attorney, accountant, appraiser, assessor, surveyor, mediator or other
          specialist, whether such opinion and/or advice has been prepared at
          the Trustee's request and/or by the Company, and the Trustee shall not
          be responsible for any loss or damage caused in consequence of any act
          and/or omission performed by it on the basis of such advice or
          opinion, unless the Trustee has acted negligently or mala fide.

     18.2 Any such advice and/or opinion may be given, forwarded or received by
          means of a letter, telegram, facsimile and/or any other electronic
          means for transmission of information, and the Trustee shall not be
          responsible for any acts performed by it on the basis of any advice
          and/or opinion and/or information transmitted in one of the aforesaid
          manners, notwithstanding that same contained errors and/or was not
          authentic, unless the Trustee was aware of such errors or where such
          errors could have been detected under a reasonable examination. Such
          opinion shall be open for perusal by any


                                       18

<PAGE>

          Bondholder, upon demand, with the Trustee, subject to the Bondholder's
          execution of a letter of confidentiality upon the Company's demand.

     18.3 The Trustee shall not be obligated to give notice to any party of the
          execution of this Deed and may not in any manner interfere with the
          management of the Company's business or affairs. Nothing in the
          contents of this section shall limit the Trustee in respect of acts to
          be performed by it under this Trust Deed.

     18.4 The Trustee shall use the trust, powers, authorizations and
          authorities conferred on it, under this Deed, at its absolute
          discretion and shall not be responsible for any damage caused in
          consequence of an error in such discretion, unless the Trustee has
          acted negligently.

19.  THE TRUSTEE'S POWER TO ENGAGE AGENTS

     The Trustee may appoint an attorney or other agent/s to act in its stead,
     to perform or participate in the performance of special acts to be
     performed with respect to the Trust and pay a fee to any such agent, and,
     without limitation to the generality of the foregoing, institution of legal
     proceedings or representation in proceedings of the Company's merger or
     spin-off. The Company may object to such appointment on any reasonable
     ground whatsoever, including in the event that the agent is competing,
     directly and/or indirectly, with the Company's business.

20.  TRUSTEE'S FEE

     Without prejudice to the rights for indemnification vested in the Trustee
     under the Law and/or the Company's obligations under this Deed, and subject
     to the contents of subsection 8.6 above, the Trustee, its attorney,
     manager, agent or other person, appointed by the Trustee, pursuant to this
     Deed, shall be entitled to indemnification out of the funds received by the
     Trustee for the Bondholders arising from the proceedings instituted by it
     and/or otherwise pursuant to this Deed, with respect to reasonable
     obligations assumed by them, with respect to reasonable expenses incurred
     in the course of implementing the Trust under this Deed or with respect to
     such acts, which in their opinion were required for such implementation
     and/or with respect to the exercise of powers and authorizations vested in
     the Trustee, pursuant to this Deed and with respect to all sorts of legal
     proceedings, opinions of attorneys and other specialists, negotiations,
     discussions, expenses, claims and demands in connection with any law and/or
     matter, made and/or omitted in any manner, with respect to the above, and
     the Trustee may withhold the funds in its possession and pay out of such
     funds such amounts as are required for settlement of the indemnification.
     Notwithstanding the foregoing, the Trustee shall not be entitled to
     indemnification for such acts performed by it where held in a conclusive
     judgment that the Trustee acted negligently.

21.  NOTICES


                                       19

<PAGE>

     21.1 Any notice on behalf of the Company and/or the Trustee to the
          Bondholders shall be given by means of an advertisement published in
          two widely-circulated daily newspapers in the Hebrew language or by
          means of forwarding a notice by registered mail to the last address of
          the Bondholders recorded in the Register (and in the event of joint
          holders - to such holder whose name appears first in the Register),
          and any notice published or mailed, as aforesaid, shall be deemed to
          have been delivered to the Bondholder on the date of the publication
          thereof as aforesaid, or within three days from the date of the
          dispatch thereof at the post office, all as the case may be. In the
          event that the Bonds are listed for trading on the Stock Exchange or
          on the TACT - Institutional, such notice shall be given through a
          notice to be published in two widely-circulated daily newspapers in
          the Hebrew language, and, at the Company's discretion, also by means
          of forwarding the notice by registered mail, to the last address of
          the Bondholders recorded in the Register. In the event that the Bonds
          are listed for trading on the Stock Exchange, an immediate report
          shall also be published and such published report shall be deemed to
          have been delivered to the Bondholders on the date of the publication
          thereof.

     21.2 Copies of notices and invitations that will be given by the Company to
          the Bondholders shall also be sent to the Trustee. It shall be
          clarified that such notices and invitations do not include ongoing
          accounts by the Company to the public.

          Copies of notices and invitations that will be given by the Trustee to
          the Bondholders shall also be sent by it to the Company.

     21.3 Any notice or demand on behalf of the Trustee to the Company or on
          behalf of the Company to the Trustee, may be given by means of a
          letter that will be forwarded by registered mail to the address set
          out in this Deed, or to any other address of which one party gives
          written notice to the other, and any such notice or demand shall be
          deemed to have been received by its addressee within three business
          days from the date of dispatch thereof at the post office.

22.  SETTLEMENT AND/OR REVISIONS IN THE BOND TERMS

     22.1 Subject to the provisions of the Law and the regulations enacted
          thereunder, the Trustee may, from time to time and at any time, if it
          is satisfied that same does not amount, in its view, to material
          injury to the rights of the Bondholders, waive any failure to fulfill
          any of the terms of the Bond or the Trust Deed on the part of the
          Company, provided that they do not refer to the terms of payment of
          the Bond and the grounds for the declaration as immediately due and
          payable and/or reports that the Company is to deliver to the Trustee
          pursuant to the provisions of this Deed.


                                       20

<PAGE>

     22.2 Subject to the provisions of the Law and the regulations enacted
          thereunder, and with the prior approval by a special resolution to be
          adopted at the general meeting of the Bondholders, at which they were
          present in person, or by their proxy, holding at least fifty percent
          (50%) of the par value of the unsettled balance of the principal of
          all the Bonds to be issued under the Trust Deed, or at an adjourned
          meeting, at which they were present in person or by proxy, holding at
          least ten percent (10%) of such balance, the Trustee may, either
          before or after the principal of any Bond to be issued under the Trust
          Deed, shall become due, to settle with the Company with respect to any
          right or claim of all or any of the Bondholders and reach any
          arrangement including waiver of any of its rights or claims and/or
          those of all or any of the Bondholders vis-a-vis the Company.

     22.3 Subject to the provisions of the Law, the Company and the Trustee may,
          either before or after the principal of all the Bonds to be issued
          under the Trust Deed become due, to revise the Trust Deed and/or the
          Bond, on the occurrence of one of the following:

          22.3.1 The Trustee has been satisfied that the change does not
               materially adversely affects the rights of the Bondholders, other
               than a revision referring to the terms of payment of the Bonds,
               the grounds for declaration as immediately due and payable and/or
               reports to be submitted by the Company to the Trustee pursuant to
               the provisions of this Deed.

          22.3.2 The proposed revision has been approved by a special resolution
               adopted at the general meeting of the Bondholders, at which the
               holders were present in person or by proxy, of at least fifty
               percent (50%) of the par value of the unsettled balance of the
               principal of all the Bonds to be issued under the Trust Deed, or
               at an adjourned meeting, at which the holders were present in
               person or by proxy, of at least ten percent (10%) of such
               balance.

     22.4 Notwithstanding the above said, the Trustee may, at the request of the
          Company, from time to time, make changes to the Trust Deed and/or the
          Bonds, as may be required by the Securities Authority and/or the Stock
          Exchange and/or any other governmental authority, for the purpose of
          registering the Bonds for trade on the Stock Exchange, provided that
          the Trustee as been persuaded that the said revision does not harm the
          Bondholders.

     22.5 In any event of exercise of the Trustee's right under this section
          above, the Trustee may demand from the Bondholders to deliver their
          certificates to it or to the Company, for the purpose of entering a
          note therein as to any compromise, waiver, revision or amendment as
          aforesaid, and at the Trustee's demand, the Company shall enter such a
          note in the certificates delivered to it. In any event of the use of
          the Trustee's right under this


                                       21

<PAGE>

          section, it shall give a written notice thereof to the Bondholders
          within a reasonable time.

23.  BONDHOLDERS' REGISTER

     23.1 The Company shall keep and maintain, at its registered office, a
          Bondholders' Register, in which the names of the Bondholders shall be
          recorded, as well as their addresses, and the number and par value of
          the Bonds registered in their name. Furthermore, any transfer of
          ownership in the Bonds shall be recorded in the Bonds. The Trustee and
          any Bondholder may, at any reasonable time, peruse such Register. The
          Company may close the Register from time to time for such period or
          periods as shall not exceed, cumulatively, 30 days per annum.

     23.2 The company shall not be obligated to record in the Register, any
          notice as to express, implied or estimated trust, or any pledge or
          lien of any nature whatsoever or any equitable right, claim or offset
          or any other right whatsoever, with respect to the Bonds. The Company
          shall only recognize the ownership of the person in whose name the
          Bonds were registered, provided that his legal heirs, administrators
          of estate or executors of the will of the registered owner and any
          person entitled to the Bonds, in the wake of the bankruptcy of any
          registered owner (and, in the case of a corporation - in the wake of
          the dissolution thereof), may be registered as their owner, after
          presenting proof which at the Company's discretion is sufficient to
          prove their right to be registered as the owner thereof.

24.  CERTIFICATES AND SPLIT OF CERTIFICATES

     For the Bonds registered in the name of one holder, one certificate shall
     be issued to him, or, at his request, a number of certificates shall be
     issued to him (the certificates referred to in this section shall be
     hereinafter referred to as: the "CERTIFICATES").

     Each certificate may be split into certificates such that the total par
     value of the Bonds included therein equals the amount of the par value of
     the Bonds included in the certificate sought to be split. The split will be
     performed in accordance with a split application signed by the registered
     owner of the Bonds, forming the subject matter of the certificate sought to
     be split, against submission of the certificate sought to be split to the
     Company at its registered office. The split shall be effected within 30
     days from the end of the month in which the certificate was delivered,
     together with its split applications, to the Company's registered office.
     The new Bonds certificates that will be issued in the wake of the split,
     shall each be for a par value amount in whole New Shekels. All expenses
     relating to the split, including Stamp Duty and other levies, if any, shall
     apply to the holder seeking the split.

25.  EXPIRY OF THE TRUSTEE'S OFFICE

     25.1 The provisions of the Law shall apply to the office of the Trustee and
          the expiry thereof, and to the appointment of a new trustee.


                                       22

<PAGE>

     25.2 The Trustee may resign from its office at any time it wishes to do so
          after giving a written notice to the Company, three (3) months in
          advance, specifying the reasons for the resignation. The Trustee's
          resignation shall have no validity unless approved by a court, and
          only from the date designated therefore in the court's approval as
          aforesaid.

          In the event that the Bonds are listed for trading on the Stock
          Exchange - the Securities Authority may apply to the court to
          terminate the office of the Trustee, pursuant to Section 35.N. of the
          Securities Law.

          The Trustee's office shall terminate where it turns out that it is
          prevented from continuing in its office, in the wake of a change in
          the provisions of the Law or the applicable law in respect of capacity
          to serve as trustee, including where such impediment is created in
          connection with the listing of the Bonds for trading on the Stock
          Exchange. In this context, a demand by the Securities Authority to
          terminate the Trustee's office shall also be deemed as "impediment".
          In such event a new Trustee shall be appointed as proposed by the
          Company, in accordance with a resolution of the meeting of the
          Bondholders in a resolution to be adopted with the required majority
          as set forth in subsection 25.3 below.

          The Company shall publish an immediate report of any such event with
          respect to the office of the Trustee and/or the termination thereof as
          aforesaid.

     25.3 Holders of ten percent (10%) of the par value of the unsettled balance
          of the principal of the Bonds may convene a general meeting of the
          Bondholders and it may decide, in accordance with the vote of holders
          of at least fifty percent (50%) of such balance, or their proxies, on
          the dismissal of the Trustee from its office.

     25.4 In the event of expiry of the Trustee's office, the court may appoint
          another Trustee, for such period and at such terms as it finds fit.
          The Trustee whose office has expired shall continue to serve in its
          office up to the appointment of another Trustee.

     25.5 Each new Trustee shall have such powers, authorizations and other
          authorities as the Trustee whose office has expired, and it may act,
          in all respects, as if it has been appointed as Trustee from the
          outset.

     25.6 Any appointment of a new Trustee, other than a trust company of a bank
          in Israel, put to the approval of the meeting of the Bondholders,
          shall require the Company to provide, on the date of the convening of
          the meeting, details of its equity and insurance arrangements with
          respect to the fulfillment of its capacity as trustee for the
          Bondholders.

     25.7 If the Trustee's office has expired and/or the Trustee has been
          dismissed from its office, the Trustee shall not be entitled to
          payment of its fee as of the date of expiry of its office and/or
          dismissal from its office. In the event of


                                       23

<PAGE>

          payment of an annual fee, the Trustee shall refund the fee paid for
          the months in which it has not served as Trustee for the Company.

26.  MEETINGS OF THE BONDHOLDERS

     Meetings of the Bondholders shall be conducted as set forth in Appendix B
     hereto.

27.  REPORTING TO THE TRUSTEE

     The Company shall submit to the Trustee, so long as all the Bonds have not
     been settled (including the linkage differentials related thereto):

     27.1 Audited financial statements of the Company for the fiscal year ended
          on December 31 of the previous year, immediately after the publication
          thereof by the Company.

     27.2 Any report with respect to interim financial results of the Company,
          immediately after the publication thereof by the Company.

     27.3 Any immediate report of the Company, immediately after the publication
          thereof by the Company, or any other report submitted by the Company
          to another stock exchange if the Company's securities will be traded
          on such stock exchange in the future.

     27.4 Approval of the Company's auditor and/or the Company's controller of
          effecting the interest payment and/or payment on account of the
          principal and the dates thereof to the Bondholders, and the balance of
          the par value of the Bonds in circulation, upon the Trustee's written
          demand for such confirmation.

     27.5 To give the Trustee a notice of the occurrence of any of the events
          constituting a ground for declaration as immediately due and payable,
          as set out in section 2 above. The Trustee undertakes to give a notice
          to the Bondholders of any notice by the Company as aforesaid.

     27.6 In the event that the Company stops reporting to the public, the
          Company undertakes to submit, to the Trustee, the reports set out in
          this section 27 above, in such format and on such dates as applicable
          to the Company, prior to the termination of the Company's reporting
          duties, so long as the Bonds have not been settled.

     For the purpose of this section 27, the publication of the said reports in
     this section 27 above on the Magna shall be deemed as submission of the
     report to the Trustee.

28.  APPLICABILITY OF THE SECURITIES LAW, 5728 - 1968

     In the event that the Bonds are listed for trading on the Stock Exchange,
     the parties shall act pursuant to the provisions of the Law and the
     Regulations thereof, in any


                                       24

<PAGE>

     matter not referred to in this Deed and, in any event of conflict between
     the provisions of the Law and its Regulations (that may not be contracted
     out) and this Deed, the parties shall act in accordance with the provisions
     of the Law and its Regulations.

29.  APPLICABLE LAW AND JURISDICTION

     29.1 Israeli Law shall apply exclusively to this Trust Deed, including the
          appendixes hereto, as well as to any dispute arising with respect to
          this Deed.

     29.2 The exclusive jurisdiction in respect hereof shall vest in the Tel -
          Aviv - Jaffa Court only.

30.  CONTRADICTION BETWEEN THE PROVISIONS OF THE DEED AND ITS APPENDICES

     In the event of a contradiction between the provisions of the Trust Deed
     and its appendices, the provisions of the Trust Deed shall take precedence.

31.  AUTHORIZATION TO REPORT IN MAGNA

     By signing this Deed, the Trustee authorizes the authorized signatories of
     the Company with respect to electronic signatures to report in its name on
     the Magna system its entering into this Deed and the execution of this Deed
     on its part, to the extent required under law.

                   IN WITNESS WHEREOF THE PARTIES HAVE SIGNED:


-------------------------------------   ----------------------------------------
      ELBIT MEDICAL IMAGING LTD.               HERMATIC TRUST (1975) LTD.

I, the undersigned, __________________, Advocate, hereby confirm that this Trust
Deed was signed by ELBIT MEDICAL IMAGING LTD. in accordance with its memorandum
and articles of association, via Messrs. _________________________________.


                                        ----------------------------------------
                                                          ADV.
                                        ----------------------------------------


                                       25
<PAGE>

                                   APPENDIX A

                           ELBIT MEDICAL IMAGING LTD.

                           (SERIES D) BOND CERTIFICATE

Registered (Series D) Bonds, unlimited in amount, of NIS 1 par value each,
payable in 8 equal annual installments, on April 1 of each of the years 2013 to
2020, inclusive (the first installment to be effected on April 1, 2013 and the
last installment to be effected on April 1, 2020), bearing interest at a rate of
5% per annum, payable in semi-annual installments on October 1 and April 1 of
each of the years 2007 to 2020 (the first installment to be effected on October
1, 2007 and the last installment to be effected on April 1, 2020), linked
(principal and interest) to the Index for February 2007, as published on March
15, 2007.

Registered Bonds

CERTIFICATE NO.: ____

TOTAL PAR VALUE OF THE BONDS UNDER THIS CERTIFICATE - NIS _______________

THE REGISTERED OWNER OF THE BONDS UNDER THIS CERTIFICATE: ____________________.

1.   This Certificate evidences that Elbit Medical Imaging Ltd. (hereinafter:
     the "COMPANY") shall pay, on April 1 of each of the years 2013 to 2020
     (inclusive), (the first installment to be effected on April 1, 2013 and the
     last installment to be effected on April 1, 2020), 12.5% of the par value
     of the Bonds under this Certificate; the Company shall further pay, on
     October 1 and April 1 of each of the years 2007 to 2020 (inclusive),
     interest at a rate of 5% per annum on the unsettled balance of their par
     value, payable in semi-annual installments, on October 1 and April 1 of
     each of the years 2007 to 2020 (the first installment to be effected on
     October 1, 2007 and the last installment to be effected on April 1, 2020),
     all subject to the linkage terms and the other terms set out in the terms
     listed overleaf. Any such installment shall be effected to the registered
     owner of the Bonds in this Certificate at the end of September 19 or March
     20 that fall immediately before the due date of such installment.

2.   The last payment for the principal and interest shall be effected against
     the delivery of the Bonds to the Company at the Company's registered
     office, or at any other place of which the Company shall give a notice, not
     later than five (5) business days prior to the due date thereof under the
     terms of the Bond.

3.   The Bonds of this Series are issued pursuant to a Trust Deed between the
     Company on the one hand, and Hermetic Trust (1975) Ltd. (hereinafter: the
     "TRUSTEE") on the other hand, entered into on April 1, 2007 (hereinafter:
     the "TRUST DEED") and are not secured by means of any lien.


                                       26

<PAGE>

4.   All Bonds of this Series shall be equal inter se (pari passu), such that
     none shall have any preferential right over the other.

5.   The Company reserves the right to issue, at any time, without the approval
     of the Trustee and/or the Bondholders of this Series, other Bonds or Series
     Bonds or other securities of any nature or type whatsoever, whether or not
     vesting a right to convert into Company shares, at such terms as the
     Company shall find fit, whether preferable, equal or inferior to the terms
     of the Bonds of this Series. The Company further reserves the right to
     increase the Series Bonds at its exclusive discretion pursuant to the
     provisions of any law and subject to the provisions of section 2 of the
     terms listed overleaf.

6.   The Bonds in this Certificate are further subject to the terms listed
     overleaf and to the terms set forth in the Trust Deed.

The Bonds are offered within a transaction that does not constitute a public
offering in the United States, within the meaning thereof in the 1933 US
Securities Law, as may be amended from time to time (hereinafter: the "LAW").
The Bonds will not be submitted for registration with the US Securities
Authority, or any other securities authority of any state in the United States.
The Bonds may not be offered or sold, under US Law, by any holder other than in
accordance with exemption from the registration requirements in the United
States, or within a transaction which is not subject to the registration
requirements, under the US Law or any securities law applicable in the pertinent
state in the United States.


               SIGNED BY THE COMPANY ON
                                        --------------------------


-------------------------------------   ----------------------------------------

I, the undersigned, __________, Advocate, hereby confirm that this Trust Deed
was signed by ELBIT MEDICAL IMAGING LTD. in accordance with its memorandum and
articles of association, via Messrs.                                  .
                                     ---------------------------------


                                        ----------------------------------------
                                        ADV.
                                        ----------------------------------------


                                       27

<PAGE>

                            THE TERMS LISTED OVERLEAF

1.   GENERAL

     In this Bond, the following terms shall have the following meanings, unless
     another meaning is implied from the context, namely:

     "Company" - Elbit Medical Imaging Ltd.;

     "Trust Deed" - a trust deed between the Company and Hermetic Trust (1975)
     Ltd.. Ltd., that was signed in connection with the (Series D) Bonds;

     "(Series D) Bonds" or the "Bond Series" or the "Bonds" - a series,
     unlimited in amount, of registered (Series D) Bonds having a par value of
     NIS 1.00 each of the Company, which shall be issued from time to time in
     the Company's sole discretion;

     "Trustee" - Hermetic Trust (1975) Ltd.. and/or any entity which shall serve
     from time to time as the trustee of the Bondholders pursuant to the Trust
     Deed;

     "Register" - the register of holders of (Series D) Bonds of the Company, in
     which all of the holders of the (Series D) Bonds shall be registered;

     "Bondholder" or "Bondowner" - the person whose name is registered at the
     given time in the Register as the Bondholder, and in the event of a number
     of joint holders, the joint holder whose name is registered first in the
     Register;

     "Bond Certificate" - a certificate of (Series D) Bonds whose text is set
     forth in Appendix A of the Trust Deed;

     "Law" or the "Securities Law" - the Securities Law, 5728 - 1968, and the
     regulations thereof, as they shall be from time to time;

     "Principal" - the amount of the total par value that is registered in this
     Bond Certificate;

     "Consumer Price Index" or the "Index" - The price index which is known by
     the name of "the Consumer Price Index", which includes fruit and vegetables
     and which is published by the Central Bureau of Statistics, including said
     index even if same is published by any other official institute or body
     instead of the Central Bureau of Statistics, and including any other
     official index which shall replace said index, whether or not based on the
     same data as the existing index. Should another index which shall be
     published by said institute or body replace said index and should said
     institute or body not determine the ratio between it and the replaced
     index, then said ratio shall be determined by the Central Bureau of
     Statistics. Should said ratio not be determined as stated, then the Trustee
     shall determine, in consultation with economic experts to be chosen by the
     Trustee, the ratio between the other index and the replaced index.

<PAGE>

     "Known Index" - on any date - the index most recently published prior to
     that date.

     "Base Index" - the Consumer Price Index in respect of February 2007, as
     published on March 15, 2007.

     "Payment Index" - the index known on the date of remittance of any payment
     on account of the Principal and/or interest.

     "Business Day" - a day on which most of the banks in Israel are open to the
     public, for the purpose of performing transactions.

     "Special Resolution" - as defined in section 6 of Appendix B of the Trust
     Deed.

     "Entitled Bondholder" - the Bondholder in this Certificate who is entitled
     to the rights set forth therein at the given time.

     "Stock Exchange" - the Tel Aviv Stock Exchange Ltd.

     "Rating Company" - a company that has been approved by the Supervisor of
     the Capital Markets at the Ministry of Finance.

2.   THE BONDS

     The Bonds in this Certificate are part of a series, unlimited in amount, of
     the Company's (Series D) Bonds.

     The Bonds are being offered in a transaction which does not constitute a
     public offering in the U.S.A., as this term is construed in US Securities
     Act of 1933, including the regulations thereof (hereinafter: the "Act").
     The Bonds shall not be filed for registration with the US Securities
     Exchange and Commission or any other securities authority of any state in
     the USA. The Bonds may not be offered or sold pursuant to law in the USA by
     any holder, other than in accordance with an exemption from the
     registration requirements in the USA, or as part of a transaction which is
     not subject to the registration requirements, pursuant to the Act and
     pursuant to all of the binding securities laws in the relevant state in the
     USA.

     Increase in the Series - the Company is entitled to issue, at any time and
     from time to time, without requiring the consent of the Bondholders or the
     Trustee, including to a subsidiary of the Company, in accordance with the
     provisions of any law, additional bonds whose terms shall be identical to
     the terms of the (Series D) Bonds, at any price and in any manner as the
     Company shall deem fit. Subject thereto, this Deed shall apply also with
     regard to any such additional bonds which shall be issued by the Company,
     and they shall be deemed, on the date of issue thereof, to be the same as
     the Company's (Series D) Bonds which were issued first. Notwithstanding
     that stated anywhere in this Deed, an additional issue of (Series D) Bonds,
     beyond the scope that was rated by a Rating Company in relation to this
     series (as at the date of this Deed, the amount equates to NIS 620
     million), shall be implemented subject to an additional rating


                                        2

<PAGE>

     by a Rating Company and subject to the fact that the additional issue of
     bonds from the same series, as stated, shall not have an adverse effect on
     the rating of the Bonds which were first issued pursuant to this Deed, as
     that rating shall be at said time. The Company shall receive approval from
     the Stock Exchange for such increase, and shall publish an immediate report
     of any increase in the Bond Series.

     (Series D) Bonds will be issued without discount. Should the discount rate
     determined for the (Series D) Bonds, following the increase of (Series D)
     Bonds, be different from the discount rate of the (Series D) Bonds existing
     in circulation at that time, the Company shall turn to the Tax Authority,
     shortly after the increase of the Bond Series, in order to obtain its
     approval that, in the matter of the withholding tax from the discount fees
     for (Series D) Bonds, a uniform discount rate be determined for the (Series
     D) Bonds in accordance with formula weighting the different discount rates
     in that series, if any.

     In the event of the said approval being obtained, the Company shall
     calculate the weighted discount rate for all the (Series D) Bonds and shall
     issue a press release (or an immediate report if the Company is a public
     company) regarding the uniform weighted discount rate and shall withhold
     tax at the payment dates of the (Series D) Bonds, according to the said
     weighted discount rate an in accordance with the provisions of law. If the
     said approval is not obtained, the Company will issue a press release (or
     an immediate report in the event of the Company being a public company),
     shortly after receiving notice from the Tax Authority that the said
     approval will not be granted and that the uniform discount rate will be the
     highest discount rate created for the (Series D) Bonds. The Company will
     withhold tax at source at the time of the payment of the bonds from that
     series, in accordance with such reported discount rate.

     Therefore, cases may arise in which the Company will withhold tax at source
     for discount fees at a rate higher than the discount fees determined for
     those who held (Series D) Bonds before the increase of this Series. In such
     a case a tax payer holding (Series D) Bonds before the increase of the
     Series and up until payment of the (Series D) Bonds, will be entitled to
     file a tax return to the Tax Authority and to receive a refund of the tax
     withheld from the discount fees, if qualified for such refund in law.

     Issue of Additional Securities - the Company reserves the right to issue,
     at any time, without requiring the consent of the Trustee and/or the
     consent of the Bondholders, other bonds or other series of bonds or other
     securities, of any kind or nature, upon such terms as the Company shall
     deem fit, whether they have priority over the terms of the Bonds, or
     whether they are equal or inferior thereto.

     Listing of the Bonds for Trading in the TACT- Institutional System -
     subject to the general directives of the Stock Exchange, the Company shall
     register the Bonds in the name of Discount Bank Nominees Ltd., and it shall
     register, as soon as practicable and insofar as is within its control, the
     Bonds with the Stock Exchange Clearing House, which shall provide clearing
     services for the Bonds and also with the system of trading that is operated
     by the Stock Exchange for institutional investors (hereinafter: the "TACT-
     Institutional"). Should the Bonds


                                        3

<PAGE>

     be listed for trading on the TACT- Institutional, the following provisions
     shall apply:

     a.   Each payment made by the Company to the Stock Exchange Clearing House
          and/or to the registration company for the payment of the Principal
          and/or the interest and/or additional payments shall be deemed to be
          payment to the holders.

     b.   Each Bondholder may exercise his rights as the holder of a Bond,
          subject to receipt by the Company and/or the Trustee, as the case may
          be, from the Registration Company of approval specifying the name of
          the Bondholder and the total amount in respect of the Principal of the
          Bonds which are being held by the registration company for said
          Bondholder.

     c.   The Bondholders shall cooperate with the Company, insofar as required,
          for the purpose of implementation of the above, including, without
          derogating from the generality of the foregoing, the return of the
          original Bond Certificates which were issued in their names, if any,
          to the Company, for the purpose of the issuance of the Bond
          Certificates in the name of the nominee company.

     d.   The Company shall inform the Trustee of the listing of the Bonds for
          trading on the TACT Institutional and shall operate in accordance with
          all of the instructions and directives of the Stock Exchange which are
          relevant in connection with the TACT Institutional, including the
          ex-date, the cum date and the methods of calculation of the interest.
          The provisions of the Trust Deed and the provisions of the terms of
          the Bonds shall be modified, insofar as required in accordance with
          the instructions and directives of the Stock Exchange, to such draft
          as shall be agreed with the Trustee, without the need for receipt of
          any approval by the Company from the Bondholders and/or from the
          Trustee.

     e.   For the avoidance of doubt, it is hereby clarified that subject to the
          provisions of the law and the rules of the Stock Exchange, any entity
          which is not an institutional investor as set forth in the First
          Schedule to the Law, shall not be entitled to trade in the Bonds
          within the TACT Institutional system as specified above.

     f.   Listing for trading on the TACT Institutional system is not listing
          for trading on the Stock Exchange as construed below.

     Listing of the Bonds for Trading on the Stock Exchange - the Company shall
     use its best endeavors and shall take all the measures reasonably required,
     subject to the provisions of any law and the rules of the Stock Exchange,
     for the listing of the Bonds for trading on the Stock Exchange by August
     30, 2007 (hereinafter: the "Effective Date for Listing"). In the event that
     the Bonds were not listed for trading on the Stock Exchange by said
     Effective Date for Listing, the Company shall be entitled in its sole
     discretion to act to procure the listing thereof for trading on the Stock
     Exchange also after the Effective Date for Listing, up until the date of
     payment of the entire Principal of said Bonds.


                                        4

<PAGE>

     In any event of the listing of the Bonds for trading on the Stock Exchange
     as stated above, the provisions of the Trust Deed and the provisions of the
     terms of the Bonds shall be modified, insofar as required in accordance
     with the instructions and directives of the Stock Exchange and/or the
     Securities Authority, to such draft as shall be agreed with the Trustee,
     without the need for receipt of any approval by the Company from the
     Bondholders and/or from the Trustee, provided that the Trustee is satisfied
     that the modification required by the Stock Exchange and/or the Securities
     Authority does not have an adverse effect on the rights of the Bondholders.
     Upon the listing of the Bonds for trading on the Stock Exchange, the Bonds
     shall cease to be traded on the TACT Institutional.

     Until such time as the Bonds are listed for trading on the Stock Exchange,
     the following provisions shall apply:

     a.   The Company shall pay a supplement of 0.5% to the rate of annual
          interest paid in respect of the unpaid principal balance of the Bonds
          (hereinafter: the "Interest Supplement"), up until the date of
          publication of the prospectus for the listing of the Bonds for trading
          on the Stock Exchange (hereinafter, in this section only: the
          "Prospectus Publication Date"), inclusively.

          It shall be clarified that should the Bonds be listed for trading on
          the Stock Exchange during an interest period, as defined in section 4
          of the Terms Listed Overleaf of the Bond Certificate (hereinafter: the
          "Interest Period"), the Company shall pay to each Bondholder at the
          end of the last trading day on the TACT Institutional (one trading day
          prior to the cessation of the trading of the Bonds on the TACT
          Institutional) (hereinafter, in this section only: the "Effective
          Date"), a one-off payment in the amount of the Interest Supplement in
          respect of the unpaid principal balance of the Bonds for the period
          commencing on the date of allocation of the Bonds and ending on the
          Prospectus Publication Date, when the Interest Supplement shall be
          calculated according to 365 days per year and shall be paid in
          accordance with the number of days from the commencement of Interest
          Period preceding the publication date of the Prospectus inclusively.
          The Company shall give notice to the Stock Exchange at least four
          trading days prior to the Effective Date, with regard to the Effective
          Date. In addition, the Company shall publish an immediate report with
          regard to the date of payment of said Interest Supplement.

     b.   The Company may not make a distribution, as defined in section 1 of
          the Companies Law, 5759 - 1999 (hereinafter: the "Companies Law")
          which does not comply with the provisions of section 302(a) of the
          Companies Law, unless the approval was obtained of the General Meeting
          of the Bondholders for such a distribution, with a majority of 100% of
          the Bondholders voting at said meeting.


                                        5

<PAGE>

     c.   Subject to that stated in sub-section 7.2 of the Trust Deed, the
          Trustee may declare the unpaid balance of the Bonds to be immediately
          due and payable, in whole or in part, and the Trustee shall be
          obligated to do so should it be so required by a special resolution
          passed at the General Meeting of the Bondholders, all upon the
          occurrence of one or more of the events set forth below:

          (i)  Should the rating of the Bonds drop to below the investment
               rating of Baa2 (which is the equivalent of the investment rating
               of BBB of Maalot - The Israeli Securities Rating Company Ltd.);

          (ii) Should the holdings of Europe Israel MMS Ltd., the Company's
               parent company, in the Company drop to below 25% of the Company's
               issued capital.

          It is hereby clarified and stressed that immediately upon the listing
          of the Bonds for trading on the Stock Exchange, all of the Company's
          undertakings as set forth in sections (a) - (c) above shall be
          cancelled, and they shall have no validity, and none of the
          Bondholders shall have any contention and/or demand and/or claim in
          connection therewith.

3.   THE PRINCIPAL

     Subject to the rest of the terms of the Bonds, the Company shall pay the
     original bond principal in 8 equal six-monthly installments, on the April 1
     of each of the years 2013 to 2020, inclusively (when the first payment
     shall be made on April 1, 2013, and the last payment shall be made on April
     1, 2020). The unpaid principal balance shall be linked to the Consumer
     Price Index in accordance with the terms of linkage as stated in section 5
     below.

4.   THE INTEREST

     The unpaid principal balance of the (Series D) Bonds shall bear annual
     interest at a rate of 5% (hereinafter: the "Interest Rate"). The interest
     shall be linked to the Consumer Price Index in accordance with the terms of
     linkage as stated in section 5 below.

     The Interest Rate in respect of each Interest Period, as defined below,
     shall be 2.5% (with the exception of the Interest Rate in respect of the
     first Interest Period, as set forth below). The interest shall be paid on
     the October 1 and April 1, for the six months ending on the date preceding
     the date of each said payment (hereinafter: the "Interest Period"), on the
     unpaid balance from time to time of the amount of the Principal in that
     Interest Period. Subject to the other terms of the Bonds, the Company shall
     pay said interest to whomsoever shall be the registered holders of the
     Bonds in the Register, at the end of the September 19 and at the end of the
     March 20 of each year preceding the date of remittance of said payment,
     respectively. For particulars regarding the Company's undertaking for the
     payment of interest surcharge at the rate of 0.5% per annum until the
     registration of the Bonds for trading on the Stock Exchange, see Section 2
     above.


                                        6

<PAGE>

     The first payment of the interest shall be made on October 1, 2007 for the
     period commencing from April 1 2007 and ending on September 30, 2007, when
     the Interest Rate in respect of this period shall be 2.9425%.

     The last payment of the interest shall be made on April 1, 2020, together
     with the last payment on account of the Principal, against the return of
     the Bond Certificates to the Company.

5.   TERMS OF LINKAGE OF THE PRINCIPAL AND INTEREST

     The unpaid principal balance and the interest thereon, as set forth above,
     shall be linked to the Consumer Price Index, in the following manner:

     Should it transpire on the date of remittance of any payment on account of
     the Principal and/or the interest of the Bonds that the Payment Index on
     the said date is higher than the Base Index, the Company shall make said
     payment of the Principal or interest, increased in a manner that is
     proportionate to the rate of increase of said Payment Index as compared
     with the Base Index; however, should it transpire that said Payment Index
     is identical to or lower than the Base Index, the Company shall make the
     said payment of the Principal or interest, when the calculation thereof
     shall be based on the Base Index.

6.   PAYMENTS OF THE PRINCIPAL AND INTEREST

     6.1  Any payment on account of the Principal and/or the interest,
          respectively, shall be paid to whomsoever shall be registered in the
          Register as the Bondholder at the end of the September 19 or at the
          end of the March 20, immediately prior to the payment date of said
          payment, with the exception of the last payment which shall be made
          against the delivery of the Bond Certificates to the Company, at the
          Company's registered offices and/or at any other place in respect of
          which the Company shall provide notice, not later than five Business
          Days prior to the date determined for the remittance of the last
          payment.

          Payments on account of the Principal and the interest shall be made
          subject to the terms of linkage as stated in section 5 above.

          Wherever the date of making a payment on account of the Principal
          and/or the interest shall fall on a day which is not a Business Day,
          the payment date of said payment shall be deferred to the first
          Business Day thereafter, and no interest shall be borne in respect of
          the deferment of said payment.

          Any payment on account of the Principal and/or the interest, which
          shall be paid with a delay exceeding three Business Days from the date
          determined for the payment thereof pursuant to this Bond Certificate,
          for reasons dependent on the Company, shall bear interest for delay as
          defined below commencing from the date determined for the payment
          thereof to the date of actual payment thereof. For this purpose, the
          rate of interest for delay shall be the interest rate which is the
          higher of: (i) the


                                        7

<PAGE>

          Interest Rate on the Bonds as stated in section 4 above, plus 3%; or
          (ii) the Prime interest rate plus 3%, all on an annual basis. The
          Company shall inform the Stock Exchange, by way of an immediate
          report, two trading days prior to the actual payment day, of the
          interest rate, which includes the rate of interest for delay.

     6.2  Each payment due from the Company in respect of the Bonds shall be
          subject to a deduction of tax at source, insofar as the Company is
          required by law to make such deduction.

     6.3  The payment to the Entitled Bondholder shall be made by check or by
          bank transfer in favor of the bank account whose details shall be
          submitted in writing to the Company at an earlier time by the Entitled
          Bondholder, in accordance with that stated in section 6.5 below.
          Should the Company be unable, for any reason which is beyond the
          Company's control, to pay any amount to the Bondholder entitled
          thereto, it shall deposit this amount with the Trustee as stated in
          section 7.2 below.

     6.4  If the Bondholder entitled to payment did not submit at an earlier
          time to the Company the details of the bank account for the crediting
          thereof by bank transfer, as stated, the Company shall send a check by
          registered mail to the last address registered in the Register. The
          sending of the check to the Entitled Bondholder by registered mail, as
          stated, shall be deemed for all intents and purposes to be payment of
          the amount specified therein on the date of the dispatch thereof by
          mail, provided that it was cashed upon presentation thereof in
          accordance with proper procedure with regard thereto.

     6.5  The Bondholder who wishes to provide notice of the bank account
          details for the crediting thereof with the payments under the Bonds,
          as stated, or who wishes to change said bank account details or his
          instructions with regard to the manner of payment, may do so by
          providing written notice, which shall be sent to the Company by
          registered mail, however, the Company shall comply with the
          instruction only if it reached its registered offices at least ten
          days prior to the date determined for the remittance of any payment
          under the Bond. Should the notice be received by the Company in delay,
          the Company shall act pursuant thereto solely with regard to those
          payments whose payment date shall fall after the payment date close to
          the date of receipt of the notice.

7.   NON-PAYMENT FOR A REASON BEYOND THE COMPANY'S CONTROL

     7.1  Any amount due to a Bondholder that was not actually paid on the date
          determined for the payment thereof due to a reason beyond the
          Company's control, while the Company was prepared to pay same, shall
          cease to bear interest and linkage differentials from the date
          determined for the payment thereof, and said Bondholder shall be
          entitled solely to those amounts to which he would have been entitled
          on the date


                                        8

<PAGE>

          determined for the payment of said amount on account of the Principal,
          the interest and the linkage differentials.

     7.2  The Company shall deposit with the Trustee the amount of the payment
          that was not paid on time, as stated in sub-section 7.1 above, not
          later than 15 Business Days from the date determined for said payment,
          and it shall provide notice of said deposit, and said deposit shall be
          deemed to be the settlement of the payment, and in the event of the
          settlement of everything that is due in respect of the Bond, it shall
          also be deemed to be the redemption of the Bond.

     7.3  The Trustee shall invest, in trust accounts in its name and in its
          favor, the funds that shall be transferred to it as stated in
          sub-section 7.2 above, in such investments as the Trustee is permitted
          to make pursuant to the Trust Deed. Should the Trustee do so, it shall
          not be liable to the Entitled Bondholders in respect of those amounts,
          other than in respect of the consideration which shall be received
          from the realization of the investments, less the expenses related to
          said investment and to the management of the trust accounts, the
          commissions and less the compulsory payments applicable to the trust
          account. Out of said funds, the Trustee shall transfer amounts to the
          Bondholders entitled thereto, as soon as practicable after proof and
          approvals shall be submitted to the Trustee attesting to their right
          to these amounts, to the Trustee's full satisfaction, and less the
          Trustee's expenses and commissions at such rate as shall be standard
          practice at the Trustee at that time.

     7.4  The Trustee shall hold these funds and shall invest same in said
          manner, until the expiration of one year from the final payment date
          of the Bonds. After this date, the Trustee shall transfer to the
          Company the amounts stated in sub-section 7.3 above, including the
          profits deriving from the investment thereof, less the Trustee's
          expenses, insofar as shall remain in the Trustee's possession at that
          time. The Company shall hold these amounts in trust for the
          Bondholders who are entitled to said amounts, and in all matters
          pertaining to the amounts which shall be transferred to the Company by
          the Trustee as stated above, the Company shall be subject to the
          provisions of sub-section 7.3 above, mutatis mutandis.

          The Company shall approve for the Trustee, in writing, the holding of
          the amounts and the fact of receipt thereof in trust for said
          Bondholders, and it shall indemnify the Trustee in respect of any
          claim and/or expense and/or damage of any kind or nature which shall
          be caused to the Trustee following and in respect of the transfer of
          said amounts, unless the Trustee acted negligently.

          The Company shall hold these funds in trust for the Bondholders who
          are entitled to said amounts for a period of six additional years from
          the date of transfer thereof to the Company from the Trustee. Funds
          which shall not have been demanded from the Company by the Bondholders
          by the expiration of seven years from the final payment date of the
          Bonds shall be transferred to the Company, and the Company shall be
          entitled to make use of the remaining funds for any purpose
          whatsoever.


                                        9

<PAGE>

8.   TRANSFER OF BONDS

     8.1  The Bonds are transferable with regard to any par value amount,
          provided that it shall be in whole New Israel Shekels. Any transfer of
          the Bonds shall be made pursuant to a deed of transfer drawn up as per
          the standard draft for a share transfer, duly signed by the registered
          holder or his legal representatives, and also by the transferee or his
          legal representatives, which shall be submitted to the Company at its
          registered offices, together with the certificates of the Bonds being
          transferred pursuant thereto, and any other proof that shall be
          required by the Company for the purpose of proving the transferor's
          right to transfer same.

     8.2  The transfer of Bonds shall be made by the signing by the transferor
          and the transferee of a share transfer deed, as per such draft that is
          acceptable to the Company, together with a witness to the signature of
          each one of them. The bond transfer deed shall be submitted to the
          Company during normal working hours.

     8.3  Notwithstanding the foregoing, until the listing of the (Series D)
          Bonds for trading on the Stock Exchange, should they be so listed, the
          Bonds may not be transferred by any of the Bondholders, other than to
          an entity who is (a) an investor who ranks among the investors listed
          in the First Schedule of the Securities Law; or (b) to the Company or
          to its subsidiary.

     8.4  In the event of the transfer of only part of the unpaid specified
          principal amount of the Bonds in this Certificate, the Certificate
          shall first be split pursuant to the provisions of section 9 below
          into the number of Bond Certificates as required as a consequence
          thereof, in such a manner that the total of all the principal amounts
          specified therein shall be equal to the specified principal amount of
          said Bond Certificate.

     8.5  After fulfillment of all these terms, the transfer shall be entered
          into the Register.

     8.6  All of the expenses and commissions entailed in the transfer shall
          apply to the entity requesting the transfer.

9.   SPLIT OF BOND CERTIFICATES

     9.1  Any Bond Certificate may be split into a number of Bond Certificates,
          where the total of all the principal amounts specified therein shall
          be equal to the specified principal amount of the Certificate whose
          split was requested.

     9.2  The split of a Bond Certificate as stated shall be done upon a
          requisition for the split, signed by the Bondholder in the Certificate
          or his legal representatives, which shall be submitted to the Company
          at its


                                       10

<PAGE>

          registered offices, together with the Bond Certificate whose split was
          requested.

     9.3  The split shall be implemented within thirty days from the expiration
          of the month in which the Certificate was submitted to the Company's
          registered offices. The new Bond Certificates which shall be issued
          following the split shall each be in par value amounts in whole New
          Israel Shekels.

     9.4  All of the expenses entailed in the split, including stamp tax and
          other levies, if any, shall apply to the entity that requested the
          split.

10.  GENERAL PROVISIONS

     10.1 Payments on account of the Principal and the interest are payable and
          transferable without taking into consideration any equity rights or
          any offsetting rights or any right of counterclaim that exists or
          shall exist between the Company and a former holder, including the
          original holder of the Bonds.

     10.2 Any holder becoming entitled to the Bonds as a consequence of
          bankruptcy or as a consequence of dissolution proceedings of a
          Bondholder shall be entitled, as soon as he shall provide such proof
          as the Company shall demand of him from time to time, to be registered
          in the Register as the holder of the Bonds or, subject to the terms
          set forth above in this Certificate, to transfer same.

     10.3 The Bondholders shall be entitled to exercise their rights pursuant to
          the Bonds and the Trust Deed through the Trustee or pursuant to a
          resolution of the General Meeting of the Bondholders, in such manners
          as set forth in the Bond and in the Trust Deed. Notwithstanding the
          foregoing, should the Trustee fail to act in accordance with the
          provisions of the Trust Deed and the Bond, the Bondholders shall be
          entitled to exercise their rights pursuant to a resolution of the
          General Meeting.

     10.4 The immediate payment right set forth in section 7 of the Trust Deed
          shall be deemed to be an integral part of this Bond.

11.  COMPROMISES AND/OR MODIFICATIONS TO THE TERMS OF THE BONDS

     11.1 Subject to the provisions of the Law and the regulations enacted
          pursuant thereto, the Trustee shall be entitled from time to time and
          at any time, should the Trustee be satisfied that it will not, in the
          Trustee's opinion, have an adverse material effect on the rights of
          the Bondholders, waive any non-compliance with any of the terms of the
          Bond or the Trust Deed by the Company, which do not relate to the
          terms of payment of the Bonds, to the causes of the declaration of
          immediate payment and/or to the reports which the Company is required
          to submit to the Trustee in accordance with the provisions of this
          Deed.


                                       11

<PAGE>

     11.2 Subject to the provisions of the Law and the regulations enacted
          pursuant thereto, and with prior approval by special resolution which
          shall be passed at the General Meeting of the Bondholders, at which
          the holders were present, either in person or by proxy, of at least
          fifty percent (50%) of the par value of the unpaid balance of the
          principal of all the Bonds that shall be issued pursuant to the Trust
          Deed, or at a deferred meeting, at which the holders were present,
          either in person or by proxy, of at least ten percent (10%) of said
          balance, the Trustee shall be entitled, whether before or after the
          principal of all the Bonds that shall be issued pursuant to the Trust
          Deed shall be declared due and payable, to reach a compromise with the
          Company in connection with any right or claim of any or all of the
          Bondholders, and to reach agreement with the Company on any
          arrangement, including to waive any right or claim of the Trustee
          and/or of any or all of the Bondholders against the Company.

     11.3 Subject to the provisions of the Law, the Company and the Trustee are
          entitled, whether before or after the principal of all the Bonds that
          shall be issued pursuant to the Trust Deed shall be declared due and
          payable, to modify the Trust Deed and/or the Bond, if any of the
          following exist:

          11.3.1 If the Trustee is satisfied that the modification will not have
               a material adverse effect on the rights of the Bondholders, with
               the exception of a modification relating to the terms of payment
               of the Bonds, to the causes of the declaration of immediate
               payment and/or to the reports which the Company is required to
               submit to the Trustee in accordance with the provisions of this
               Deed.

          11.3.2 If the proposed modification was approved by a special
               resolution that was passed at a General Meeting of the
               Bondholders, at which the holders were present, either in person
               or by proxy, of at least fifty percent (50%) of the par value of
               the unpaid balance of the principal of all the Bonds that shall
               be issued pursuant to the Trust Deed, or at a deferred meeting,
               at which the holders were present, either in person or by proxy,
               of at least ten percent (10%) of said balance.

     11.4 Notwithstanding the foregoing, the Trustee shall be entitled, at the
          Company's request, from time to time, to make modifications to the
          Trust Deed and/or to the Bonds, as shall be required by the Securities
          Authority and/or the Stock Exchange and/or any other governmental
          body, for the purpose of listing the Bonds for trading on the Stock
          Exchange, provided that the Trustee is satisfied that the modification
          will not have an adverse effect on the Bondholders.

     11.5 In any event of the use of the Trustee's right pursuant to this
          section above, the Trustee shall be entitled to demand that the
          Bondholders submit their Certificates to the Trustee or to the
          Company, for the purpose of the entry of a note regarding any
          compromise, waiver, modification or amendment as stated, and at the
          Trustee's request, the


                                       12

<PAGE>

          Company shall enter such a note in the Certificates which shall be
          submitted thereto. In any event of the use of the Trustee's right
          pursuant to this section above, the Trustee shall provide notice
          thereof, in writing, to the Bondholders within a reasonable period of
          time.

12.  GENERAL MEETINGS OF THE BONDHOLDERS

     The General Meetings of the Bondholders shall be convened and conducted in
     accordance with that stated in Appendix B of the Trust Deed.

13.  RECEIPTS AS PROOF

     Without derogating from any other of these terms, a receipt signed by a
     holder of the Bonds in this Certificate shall constitute proof of the full
     settlement of any payment specified in the receipt, which was made by the
     Company or by the Trustee, as the case may be, in respect of the Bonds in
     this Certificate.

14.  REPLACEMENT OF BOND CERTIFICATE

     Should a Bond Certificate be defaced, lost or destroyed, the Company shall
     be entitled to issue in place thereof a new Bond Certificate, upon the same
     terms with regard to proof, indemnity and cover of the expenses that were
     caused to the Company for the purpose of clarifying the right of ownership
     of the Bonds, as the Company shall deem fit, provided that in the event of
     defacement, the defaced Bond Certificate shall be returned to the Company
     prior to the issuance of the new certificate. Stamp tax and other levies,
     as well as other expenses entailed in the issuance of the new certificate
     shall apply to the entity requesting said certificate.

15.  NOTICES

     15.1 Any notice on behalf of the Company and/or the Trustee to the
          Bondholders shall be given in a notice to be published in two daily
          newspapers which are widely circulated in Israel in Hebrew or by the
          sending of a notice by registered mail according to the last address
          of the Bondholders registered in the Register (and in the event of
          joint holders - to the holder whose name appears first in the
          Register) and any notice which shall be published or sent as stated
          shall be deemed to have been delivered to the Bondholder on the date
          of publication thereof as stated, or at the expiration of three days
          from the date of dispatch thereof by mail, all as the case may be.
          Should the Bonds be listed for trading on the Stock Exchange or on the
          TACT - Institutional, notice as stated above shall be given in a
          notice to be published in two daily newspapers which are widely
          circulated in Israel in Hebrew, and in the Company's discretion, also
          by sending the notice by registered mail to the last address of the
          Bondholders registered in the Register. Should the Bonds be listed for
          trading on the Stock Exchange, in addition, an immediate report shall
          be published, and a report so published shall be deemed to have been
          delivered to the Bondholders on the date of publication thereof.


                                       13

<PAGE>

     15.2 Copies of the notices and invitations which shall be given by the
          Company to the Bondholders, shall also be sent by the Company to the
          Trustee. It shall be clarified that such notices and invitations do
          not include current reports of the Company to the public.

          Copies of the notices and invitations which shall be given by the
          Trustee to the Bondholders shall also be sent by the Trustee to the
          Company.

     15.3 Any notice or demand on behalf of the Trustee to the Company or on the
          Company's behalf to the Trustee may be given by letter, which shall be
          sent by registered mail according to the address set forth in this
          Deed, or according to any other address in respect of which one party
          shall give notice to the other, in writing, and any such notice or
          demand shall be deemed to have been received by the party to which the
          notice was sent at the expiration of three Business Days from the date
          of dispatch thereof by mail.

16.  PURCHASE OF BONDS BY THE COMPANY OR BY A SUBSIDIARY

     16.1 The Company reserves the right to purchase at any time Bonds of the
          Bond Series at any price as it shall deem fit, without prejudice to
          the payment obligation of the Bonds which shall be held by others,
          with the exception of the Company.

     16.2 The Bonds which shall be purchased by the Company shall be cancelled,
          and if they were listed for trading on the Stock Exchange or on the
          TACT - Institutional, as stated in section 2 of the Terms Listed
          Overleaf of the Bond (the First Schedule to the Trust Deed), then they
          shall also be delisted from trading on the Stock Exchange or from
          trading on the TACT - Institutional, as the case may be, and the
          Company shall not be entitled to re-issue them.

     16.3 A subsidiary of the Company may buy and/or sell from time to time on
          the Stock Exchange and off the Stock Exchange, including by way of an
          issue by the Company, Bonds of the Bond Series. The Bonds which shall
          be held as stated by a subsidiary shall be deemed to be the asset of
          the subsidiary, and if they are listed for trading, they shall not be
          delisted from trading on the Stock Exchange, and they may also be
          transferred just like the other (Series D) Bonds. The votes to which
          the subsidiary shall be entitled, as stated, by virtue of its holdings
          of the Bonds, shall not be included in the count for the purpose of
          the determination of the existence of a quorum at the General Meeting
          of the Bondholders, and the bonds held by the subsidiary shall not
          confer thereon voting rights at said General Meetings, for such time
          as the Bonds shall be held by said subsidiary.

     16.4 That stated in this section 16 above, per se, shall not require the
          Company and/or a subsidiary of the Company and/or the Bondholders to
          buy Bonds or to sell the Bonds which they hold.


                                       14

<PAGE>

17.  EARLY REDEMPTION

     In the event that the Bonds are listed for trading on the Stock Exchange -
     and should it be decided by the Stock Exchange to delist the Bonds in
     circulation, because the value of the public's holdings of the Bonds was
     less than the amount set forth in the directives of the Stock Exchange
     regarding the delisting of bonds, the Company shall determine the
     redemption date on which the Bondholder shall be entitled to redeem the
     Bonds, and the Company shall act for this purpose as follows:

     17.1 Within 45 days from the date of the decision of the Board of Directors
          of the Stock Exchange regarding said delisting, the Company shall
          provide notice of an early redemption date on which the Bondholder
          shall be entitled to redeem the Bonds. The Company shall pay to the
          Bondholder the principal, together with linkage differentials and
          interest pursuant to the terms of the Bond, which had accrued by the
          date of the actual redemption. The notice of the early redemption date
          shall be published in two daily newspapers which are widely circulated
          in Israel in Hebrew and shall be sent in writing, by registered mail,
          to all of the Bondholders at that time.

     17.2 The early redemption date shall fall due not prior to 17 days from the
          date of the publication of the notice and not later than 45 days from
          said date, however, not in the period between the date determined for
          payment of interest and the date of the actual payment thereof.

     17.3 On the early redemption date, the Company shall redeem the Bonds whose
          holders had requested redemption thereof, according to the par value
          thereof together with the linkage differentials and interest accrued
          on the principal up to the actual redemption date (the calculation of
          the interest for part of a year shall be made on the basis of 365 days
          per year).

     17.4 The determination of the early redemption date as stated above shall
          not have an adverse effect on the redemption rights set forth in the
          Bonds for any of the Bondholders who shall not redeem them on the
          early redemption date as stated above, however, the Bonds shall be
          delisted from trading, and they shall be subject, inter alia, to the
          tax implications arising therefrom.

     17.5 Early redemption of the Bonds as stated above shall not confer on any
          of the Bondholders who shall redeem the Bonds as stated the right to
          payment of interest in respect of the period after the actual
          redemption date.


                                       15

<PAGE>

                                   APPENDIX B
                           ELBIT MEDICAL IMAGING LTD.
                       GENERAL MEETINGS OF THE BONDHOLDERS

1.   The Trustee or the Company may invite the Bondholders to a Bondholders'
     meeting. If the Company convenes such a meeting, it is required to
     immediately send notice, in writing, to the Trustee of the place, the date
     and the time at which the meeting will be held and of the matters to be
     raised for discussion thereat.

     The Company shall be required to convene such a meeting, upon the written
     requisition of the Trustee or of the holders of at least ten percent (10%)
     of the par value of the unpaid balance of the principal of all the Bonds
     that shall be issued pursuant to the Trust Deed. The Trustee shall be
     required to convene such a meeting upon the written requisition of the
     holders of at least ten percent (10%) of the par value of the unpaid
     balance of the principal of all the Bonds that shall be issued pursuant to
     the Trust Deed. In the event that the requisitioners of the meeting are the
     Bondholders, the Company and/or the Trustee, as the case may be, shall be
     entitled to demand from the requisitioners indemnification for the
     reasonable expenses entailed therein.

     At the time of convening Bondholder meetings, the Trustee will examine the
     existence of a conflict of interests amongst the Bondholders under the
     circumstances of the case. The Company and the Trustee shall act to convene
     class meetings of Bondholders pursuant to the provisions of any law, case
     law, the provisions of the Securities Law and the Regulations and
     Directives promulgated thereunder.

2.   In respect of each Bondholders' meeting, advance notice of at least 14 days
     shall be given to the Bondholders and to the Trustee, which shall specify
     the place, the date and the time of the meeting, and which shall also
     specify, in a general manner, the issues to be discussed at the meeting.
     Should the meeting be convened for the purpose of passing a special
     resolution, advance notice of at least 21 days shall be given, and the
     notice shall specify, in addition to that stated above, the proposed text
     of the special resolution. In the event of the convening of the meeting by
     the Trustee, such notice shall also be given to the Company.

     The Trustee may shorten the period of time for the provision of advance
     notices, should the Trustee believe that the deferment of the convening of
     the meeting could have an adverse effect on the Bondholders' rights.

3.   Any notice on behalf of the Company and/or the Trustee to the Bondholders
     shall be given in a notice that shall be published in two daily newspapers
     which are widely circulated in Israel in Hebrew or by the sending of a
     notice by registered mail according to the last address of the Bondholders
     registered in the Register (and in the event of joint holders - to the
     holder whose name appears first in the


                                       16

<PAGE>

     Register) and any notice which shall be published or sent as stated shall
     be deemed to have been delivered to the Bondholder on the date of
     publication thereof as stated, or at the expiration of three days from the
     date of dispatch thereof by mail, all as the case may be. Should the Bonds
     be listed for trading on the Stock Exchange or on the TACT - Institutional,
     notice as stated above shall be given in a notice to be published in two
     daily newspapers which are widely circulated in Israel in Hebrew, and, in
     the Company's discretion, also by sending the notice by registered mail to
     the last address of the Bondholders registered in the Register. Should the
     Bonds be listed for trading on the Stock Exchange, in addition, an
     immediate report shall be published, and a report so published shall be
     deemed to have been delivered to the Bondholders on the date of publication
     thereof.

4.   No resolution shall be disqualified which was duly passed at a meeting
     convened as stated above, if, in error, notice thereof was not given to the
     holders of at least ten percent (10%) of the par value of the unpaid
     balance of the principal of all the Bonds that shall be issued pursuant to
     the Trust Deed or if such notice was not received by said holders.

5.   The chairman of the meeting shall be the person appointed by the Trustee.
     Should the Trustee not appoint a chairman as stated, or should the person
     appointed by the Trustee as stated be absent from the meeting, the
     Bondholders who are present (or their proxies) shall elect a chairman from
     among their number. The Bondholders' meeting shall commence after it shall
     be proven that a quorum exists as required for the commencement of the
     discussion.

6.   (a)  Subject to the quorum required for the dismissal of the Trustee
          pursuant to law, at the Bondholders' meetings, with the exception of
          that stated in section 6(e) below, a quorum shall be constituted by
          the presence of at least two Bondholders who are present, either in
          person or in proxy, and who hold or represent jointly at least ten
          percent (10%) of the par value of the unpaid balance of the principal
          of all the Bonds that shall be issued pursuant to the Trust Deed at
          that time.

     (b)  If, within half an hour from the time designated for the commencement
          of such a meeting, there shall be no quorum as stated, the meeting
          shall be adjourned to the same day of the following week, in the same
          place and at the same time (without any additional notice being
          necessary) and should this day not be a Business Day - to the next
          subsequent Business Day (without any additional notice being
          necessary), or to such other date, place and time as the entity
          convening the meeting shall determine, provided that the convening
          entity shall provide notice of seven (7) days in advance, at least, of
          the holding of said adjourned meeting, in the same manner in which it
          gave the notice of the holding of the original meeting, and it shall
          note that should there be no quorum at the adjourned meeting, as
          stated above, the quorum shall be two Bondholders who are present,


                                       17

<PAGE>

          either in person or in proxy, without taking into consideration the
          par value of the Bonds which they hold. Such notice may also be given
          in the notice pursuant to which the adjourned meeting was called.

     (c)  Should there be no quorum at the meeting adjourned as stated above,
          two Bondholders who are present, either in person or in proxy, and who
          hold any amount whatsoever of Bonds, shall constitute the quorum.

     (d)  With the consent of the holders of the majority of the par value of
          the unpaid balance of the principal of all the Bonds that shall be
          issued pursuant to the Trust Deed, who are present at a meeting,
          either in person or in proxy, at which a quorum exists, the Chairman
          may, and at the request of the meeting, is obligated to, defer the
          continuation of the meeting from time to time and from place to place,
          as the meeting shall decide. Should the continuation of the meeting be
          deferred by ten days or more, notice shall be given of the continued
          meeting in the same manner that notice was given of the first meeting.
          With the exception of the foregoing, the Bondholders shall not be
          entitled to receive any notice of a continued meeting and/or of the
          matters to be discussed by the continued meeting. No matters shall be
          discussed at the continued meeting other than those matters which
          could have been discussed at the meeting at which the deferment was
          decided upon.

     (e)  At a meeting convened in order to pass any of the resolutions set
          forth below and also resolutions defined in the Trust Deed, in the
          Bond, in the Terms Listed Overleaf and in this Appendix, as special
          resolutions (hereinafter: "Special Resolution"), a quorum shall be
          constituted by the presence at the meeting of the holders of at least
          fifty percent (50%) of the par value of the unpaid balance of the
          principal of all the Bonds that shall be issued pursuant to the Trust
          Deed or at an adjourned meeting, at which the holders shall be
          present, either in person or in proxy, of at least ten percent (10%)
          of said balance:

          (1)  Any material amendment, modification or arrangement of the
               Bondholders' rights, whether these rights derive from the Bonds,
               from the Trust Deed or otherwise, or any material compromise or
               waiver in connection with these rights;

          (2)  Any amendment to the provisions of the Trust Deed which shall be
               published by the Company, and the authorization of the Trustee to
               sign any additional or new trust deed for the purpose of making
               said amendment;

          (3)  The declaration of the Bonds to be immediately due and payable.


                                       18

<PAGE>

          The provisions of this section 6(e) shall apply subject to the
          provisions of section 2 of the Trust Deed. It is hereby clarified that
          for the purpose of the presence of a quorum, the votes shall not be
          taken into account of Bondholders which are subsidiaries of the
          Company, related companies of the Company and/or controlling
          shareholders of the Company and/or companies controlled by them, and
          Bondholders which are subsidiaries of the Company, related companies
          of the Company and/or controlling shareholders of the Company shall
          not be entitled to vote at any General Meeting.

7.   (a)  Bondholders are entitled to participate in and vote at any General
          Meeting by proxy. In any vote of Bondholders, the vote shall be held
          on a poll, so that each Bondholder or his proxy shall be entitled to
          one vote in respect of each NIS 1.00 par value of the unpaid principal
          balance of the Bonds by virtue of which he is entitled to vote. In the
          event of joint holders, the only vote that shall be accepted is that
          of the holder who wishes to vote, either in person or by proxy, whose
          name appears first, out of the joint holders, in the Register.

     (b)  The Bondholder or his proxy may vote in respect of part of his votes
          for a particular proposed resolution; and in respect of another part
          of his votes, he may vote against it; and in respect of another part
          of his votes, he may abstain; all as he shall deem fit.

     (c)  The Trustee who shall take part in a meeting at the Company's
          invitation shall participate without a voting right.

8.   (a)  The majority required to pass an ordinary resolution of the General
          Meeting is a simple majority of the number of votes represented in the
          vote, voting for or against. The majority required to pass a Special
          Resolution at a meeting as stated in section 6(e) above is a majority
          of not less than 75% of the number of votes represented in said vote,
          voting for or against.

     (b)  A resolution to amend the Trust Deed shall be passed by Special
          Resolution, subject to the provisions of the Law.

     (c)  A declaration by the Chairman of the passing of a resolution or the
          rejection thereof, and entry to this effect in the minutes of the
          meeting, shall serve as conclusive evidence of this fact.

9.   (a)  The instrument appointing a proxy shall be in writing and shall be
          signed by the appointor or by his proxy, who has due authorization, in
          writing. Should the appointor be a corporation, the appointment shall
          be made by authorization in writing, duly signed by the corporation
          together with the


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<PAGE>

          approval by an attorney of the validity of the signature. A proxy need
          not be a Bondholder himself.

     (b)  The instrument of appointment and the power of attorney or any other
          certificate pursuant to which the instrument of appointment was
          signed, or an authenticated copy of such a power of attorney, shall be
          deposited at the Company's offices not less than 48 hours prior to the
          time of the meeting in respect of which the power of attorney was
          given, unless determined otherwise in the notice convening the
          meeting.

     (c)  A vote conducted in accordance with the terms set forth in the
          instrument appointing a proxy shall be valid even if prior to the
          meeting, the appointor passed away or was declared to be incapacitated
          or the instrument of appointment was cancelled or the Bond in respect
          of which the vote was given was transferred, unless notice, in
          writing, was received at the Company's registered offices prior to the
          time of the meeting, with regard to said death, declaration of
          incapacity, or cancellation or transfer, as the case may be.

     (d)  Any corporation which is the holder of a Bond may, pursuant to duly
          signed authorization in writing, empower a person as it shall deem fit
          to act as its representative at any meeting of the Bondholders, and
          the person so empowered may act on behalf of the corporation which he
          represents.

10.  The Chairman of the meeting shall attend to the drawing up of minutes of
     all the discussions and resolutions at any General Meeting of the
     Bondholders, and to the keeping thereof in the Book of Minutes of the
     Bondholders' Meetings. All minutes signed by the Chairman of the meeting at
     which the resolutions were passed and the discussions were conducted, or by
     a chairman of the meeting held subsequent thereto, shall serve as proof of
     the matters entered therein, and until such time as the contrary is proven,
     any resolution passed at such a meeting shall be deemed to have been duly
     passed.

11.  Any person or persons who shall be appointed by the Trustee as the
     Secretary of the Company and any other person or persons who shall be so
     authorized by the Company, shall be entitled to be present at the
     Bondholders' meetings. No such persons shall have a voting right at the
     General Meeting.

12.  Any meeting of the Bondholders shall be held at the Company's registered
     offices or at any other venue in respect of which the entity convening the
     meeting provided notice.

                                      * * *


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