Exhibit 10(i)

The First International Bank of Israel Ltd.                         May 11, 1999
Tel-Aviv Main Branch

Dear Sirs,

Whereas on February 17, 1999 we signed a Request for a loan in foreign currency
(hereinafter: "loan application") which is attached hereto and forms an integral
part hereof;

And whereas in the loan application we requested you to grant us a loan in the
amount of U.S. $24,000 000 (Twenty four million) due date May 17, 1999 ("loan")
and you granted the loan to us;

And whereas the due date of the loan will expire on May 18, 1999;

We accordingly request you to extend the validity of the loan for a period of 3
months up to the new expiry date on August 18, 1999.

All other terms and conditions of the loan as stipulated in the loan
application, remain unchanged.

                                             Yours faithfully,

                                             PEC Israel Finance Corporation Ltd.

                    [Borrower's signature]  
                                             -----------------------------------
                                      By:    s/JON BOOCK  s/MICHEL DAHAN
                                             -----------------------------------
                                      Title:
                                             -----------------------------------

We, the undersigned, as signatories on a Special Guarantee as stipulated in the
loan application, hereby confirm that the expiry date of the a/m loan has been
extended with our knowledge and consent and that our guarantee of the
obligations of PEC Israel Finance Corporation Ltd. towards you under the loan
remains in full force and effect.

                                             PEC Israel Economic Corporation
                      Guarantor's signature: By:  Frank J. Klein, President
                                             -----------------------------------
                           Date:               May 11, 1999
                                             -----------------------------------


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<PAGE>

THE FIRST INTERNATIONAL BANK OF ISRAEL LTD.                 A SAFRA BANK

                       APPLICATION FOR FOREIGN CURRENCY LOAN [FLOATING INTEREST]

The First International Bank          Customer's name: PEC Israel Finance
of Israel Ltd. Tel Aviv Main                           Corporation Ltd.
Branch                                Account No: 467057
                                      Date:   May 11, 1999
                                      Date of disbursement of loan: May 18, 1999

Dear Sirs:

      Within the scope of the General Debit Agreement signed between us
(hereinafter the "debit agreement") and subject to our obligations towards you
therein and under any other document signed an/or to be signed by us, we request
you to grant to us a foreign currency loan (hereinafter - "the loan") on the
terms set forth below:

1.    LOAN CURRENCY AND AMOUNT
      The loan will be in U.S. Dollars (hereinafter - "the loan currency") in
      the amount of $24,000,000.

2.    REPAYMENT OF PRINCIPAL

      The principal amount of the loan will be repaid in the loan currency:

  |_| by _____ monthly/quarterly/semi-annual consecutive and equal
      installments_of ________ each on the ____ day of the month commencing on
      _____________.

  |_| by _____ consecutive and equal installments of _________ each on the last
      day of March, June, September and December in each year commencing on
      _______.

  |X| in one bullet payment on August 18, 1999.

  |_| by installments in amounts and on dates as follows:

      the sum of _____________ on _______________.
      the sum of _____________ on _______________.
      the sum of _____________ on _______________.
      the sum of _____________ on _______________.
      the sum of _____________ on _______________.

3.    LOAN INTEREST

      a.    Interest payment dates 
            Interest on the loan will be paid in the loan currency on the
            following dates:

        |X| on the principal payment dates specified in clause 2 above.

        |_| on the last day of each calendar month commencing on ________ and a
            final payment on the date of payment of the final installment of
            loan principal.

        |_| on the last day of March, June, September and December in each year
            commencing on _____, and a final payment on the date of payment of
            the final installment of loan principal.

        |_| monthly/quarterly/semi-annually on the _____ of each month
            commencing on the _____ and a final payment on the date of payment
            of the final installment of loan principal.


                                                             Page 16 of 23 pages
<PAGE>

      b.    Interest periods

            Interest on the outstanding principal amount of the loan will be
            computed by you in relation to interest periods.

            The first period will run from the date of disbursement of the loan
            up to the first interest payment date stipulated in sub-para. a)
            above or the deferred date pursuant to para. 4 below (exclusive of
            such date). Subsequent interest periods will run from an interest
            payment date (inclusive of such date) to the next following interest
            payment date stipulated in sub-para. a) above or the deferred date
            pursuant to para. 4 below (exclusive of such date).

      c.    Rate of interest and manner of determination

            The principal amount of the loan outstanding from time to time shall
            carry daily interest from the date of disbursement of the loan up to
            the principal payment date(s), calculated according to the actual
            number of days elapsed based on a year of 360 days, at the Foreign
            Currency Base Rate (as defined below) determined from time to time
            by the Bank for the first day of each interest period, plus 0.75%
            p.a. "Foreign Currency Base Rate" herein shall mean the interest
            rate determined by the bank from time to time, based on interest
            rates prevailing in international currency markets, for loans in the
            loan currency and for a period of 1, 2, 3, 6 or 12 months (each such
            period being hereinafter referred to as a "fixed period") according
            to the interest period stipulated in sub-para. b) above PROVIDED
            HOWEVER that:

            1.    in a loan where interest is payable in a lump sum concurrently
                  with the principal amount and the period of the loan does not
                  coincide with any fixed period, the Foreign Currency Base Rate
                  for the loan will be the Foreign Currency Base Rate determined
                  by the bank for the first fixed period which is immediately
                  longer than the period of the loan;

            2.    in a loan where interest is payable by installments and the
                  first and/or the last interest period(s) is/are shorter than
                  the intervening interest period(s), the Foreign Currency Base
                  Rate for the first and/or the last interest periods (as the
                  case may be) will be the Foreign Currency Base Rate determined
                  by the bank for a fixed period coinciding with the intervening
                  interest period(s).

      The Foreign Currency Base Rate for the first interest period is 5.0% p.a.
      and the full interest rate for the first period is 5.75% p.a. At the end
      of each interest period, the bank will determine the Foreign Currency Base
      Rate for the following interest period and notice of the full interest
      rate for such period will be sent to us.

4.    DEFERRED PAYMENT

            In this paragraph "business day" means a day on which transactions
      in the loan currency are carried out in your bank.


                                                             Page 17 of 23 pages
<PAGE>

            If any date for payment of principal and/or interest and/or
      commission shall fall on a day which is not a business day in the bank,
      the date for effecting such payment shall be deferred to the next
      following business day and interest up to such date will be calculated
      accordingly.

5.    INTENTIONALLY DELETED

6.    EFFECTIVE COST

      The effective cost of the loan is ____%.

7.    TAXES DUTIES AND OTHER CHARGES

      a.    Without derogating from our aforementioned obligations, we undertake
            to pay to you any amount demanded by you to pay any tax, duty or
            fees that you have been and/or may be obliged to pay and/or which we
            have been obliged and/or may be obliged to pay in connection with
            the loan as well as in the event that the bank may demand immediate
            repayment of the loan for any reason before the scheduled maturity
            date(s).

      b.    All amounts due from us under the loan will be paid to you by us in
            full without deduction, set-off or withholding whatsoever in respect
            of taxes, levies, duties, fees or any other impositions, present or
            future (hereinafter "tax") levied on any such amount (hereinafter:
            "payment"). Should we be required to deduct or withhold tax at
            source from any payment in accordance with the requirements of
            applicable law (except Israel Law) and/or any competent authority,
            we shall effect such payment increased at the required rate to
            ensure that after deduction or withholding as aforesaid, you will
            receive on the due date such amount as you would have received had
            no such deduction or withholding been made as aforesaid.

8.    INCREASED COST

            If the result of any law or regulation or change in the
      interpretation or application thereof after the date hereof or compliance
      by you with the requirements or directives of the Bank of Israel or other
      competent authority (including, but without limiting, those relating to
      liquidity or reserve requirements) is that the cost to your bank of
      making, funding or maintaining the loan or any part thereof is increased
      compared to the cost on the date of disbursement; then and in each such
      case:

            a.    you shall notify us in writing of such event and of the rate
                  of increase (hereinafter "notice of increase").

            b.    we shall pay such additional amount as you shall determine
                  will compensate you for such increased cost and/or dilution of
                  yield. 

            c.    we shall be entitled to prepay the outstanding amount of the
                  loan together with all interest accrued thereon subject as
                  stated below:


                                                             Page 18 of 23 pages
<PAGE>

            1.    prepayment shall take place on a principal payment date as
                  stated in para. 2 above provided that such day is a business
                  day as defined in para. 4 above. Should such day not be a
                  business day we may effect payment on the next following
                  business day.

            2.    we shall give you not less than thirty days' prior written
                  notice of the prepayment. Such notice shall be irrevocable and
                  may not be changed.

            3.    we shall pay you, in respect of any amount of principal
                  prepaid as aforesaid, a prepayment commission (if any) payable
                  on the date of prepayment.

            4.    we shall pay you, in respect of the period between the date of
                  giving a notice of increase and actual repayment, the
                  additional amount referred to in sub-para.(b) above.

9.    LOAN CONVENTION

      a.    You may at any time at your discretion convert the unpaid balance of
            the loan or any part thereof into a shekel loan linked to the loan
            currency and you may reconvert the same or any part thereof and
            repeat such conversions, each conversion as aforesaid being referred
            to hereinafter as a "conversion".

      b.    A conversion will be effected by making a new loan available, in
            shekels or the loan currency as the case may be, in the amount that
            the bank wishes to convert out of the existing loan and the proceeds
            of the new loan will be used to redeem all or part of the existing
            loan.

      c.    For so long as a loan is maintained in shekels, the principal amount
            thereof and interest thereon shall be linked to the middle rate (as
            defined in para. 5 above) of the loan currency as published by you
            from time to time.

      d.    For the avoidance of doubt, we note that no change shall take effect
            by reason of any conversion, in the amount of principle, interest or
            commission payable by us to you in the loan currency had such
            conversion not taken place.

      e.    Save as aforesaid, the terms and conditions of the loan as specified
            herein shall remain unchanged.

10.   PREPAYMENT

            We shall be entitled to prepay all or any part of the outstanding
      principal amount of the loan or interest thereon or any part thereof
      before the payment date(s) stipulated above provided we obtain your prior
      written consent thereto. You may attach such conditions to your giving
      consent as you shall deem fit.

11.   EURO

      a.    We acknowledge that the occurrence or non-occurrence of an event
            connected to the Economic and Monetary Union of the European
            Community (hereinafter: the "Union") shall not of


                                                             Page 19 of 23 pages
<PAGE>

            itself cause the cancellation of (by way of frustration or
            otherwise) or give a right to cancel the loan or to change any of
            its terms save as stated in para.b) below.

      b.    If the loan currency is a national currency which, according to
            decisions taken or to be taken within the scope of the Union will be
            cancelled and replaced by a common European currency (hereinafter:
            "Euro" even if such currency will be given another name), the
            following provisions shall apply:

            1.    In the transition period between 1st January 1999 and 31st
                  December 2001 or such other expiry date as shall be
                  determined, we may instruct you on any interest payment date
                  stipulated in para. 3a) above to convert the outstanding
                  account of the loan to Euro provided we give you at least 15
                  days prior written notice of such intention.

            2.    If we do not instruct you as aforesaid, you shall convert the
                  outstanding balance of the loan into Euro on the date of
                  expiry of the transition period or, if such date does not fall
                  on an interest payment date hereunder, on the immediately
                  preceding interest payment date stipulated in para. 3a) above.

            3.    Conversion of the loan into Euro as aforesaid shall be
                  effected in accordance with the standard procedure in force in
                  the bank and without charge.

            4.    Save for the change of the loan currency to Euro, no change in
                  the terms of the loan shall occur as a result of the
                  conversion referred to in sub-paras. 1) and 2) above and the
                  provisions of this application shall continue to apply as
                  prescribed herein.

12.   GOVERNING LAW AND JURISDICTION

      We hereby irrevocably agree and undertake as follows:

      a.    This application and all matters relating thereto shall be governed
            by and construed in accordance with the laws of the State of Israel.

      b.    

            1.    The competent courts in Israel as stated in sub-para. 2) below
                  shall have sole jurisdiction to hear any dispute deriving from
                  this application.

            2     The sole place of jurisdiction for the purposes hereof shall
                  rest with the competent court in Jerusalem, Tel Aviv-Jaffa,
                  Haifa, Beersheva or Nazereth, whichever is closer to the
                  location of the Bank's branch at which the account mentioned
                  above is maintained.

      c.    We hereby waive the raising of any plea of objection in respect of
            the jurisdiction as provided in sub-clause (b) above in any claim
            proceeding or dispute deriving herefrom or in connection with this
            application, and we shall not plead that the court as aforesaid is
            not the convenient or appropriate forum.

      d.    Our consent to jurisdiction as provided in sub-clause (b) above
            shall not impair your right to take legal proceedings against us


                                                             Page 20 of 23 pages
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            in any other competent court in Israel or abroad, and the taking of
            legal proceedings in a particular court shall not prevent you from
            taking legal proceedings in another court, whether simultaneously or
            otherwise.

      e.    We hereby give our general consent that in any claim or legal
            proceeding filed in the court or before another judicial authority
            in connection with this application, any relief or remedy may be
            given and any proceeding shall be taken in connection with a claim
            as aforesaid, including, and without derogating from the generality
            of the foregoing, proceedings for the execution, enforcement and
            realisation of any assets or property (unconnected to the actual use
            or intended use of the said property or assets), and we also agree
            to any order or judgment given in any claim and proceeding as
            aforesaid.

      f.    Without derogating from any other legal provision regarding the
            service of process, we hereby consent that any process or claim
            filed as above shall be served on us at the address furnished to you
            by us from time to time as the address for the dispatch of mail.

13.   INTENTIONALLY DELETED

14.   IRREVOCABLE INSTRUCTIONS

      We hereby give you irrevocable instructions to debit our account indicated
      below with the amounts in the loan currency for payments of principal,
      interest and commission (hereinafter: "amounts due") or such amount in NIS
      as shall be required to purchase the loan currency amount equivalent to
      the amounts due, as the case may be, on the payment dates stipulated above
      on the conversion dates, on the deferred dates or on payment dates
      determined by you if we shall be obliged to make immediate repayment of
      the loan under the Debit Agreement as the case may be (hereinafter - the
      "agreed repayment dates"), and we undertake to pay any amount debited to
      our account as aforesaid on the due date.

      |_|   Account of the type _____ in the loan currency and in the absence of
            sufficient balance to cover the amounts due-a debitory account for
            an indeterminate period in the loan currency or, in your discretion,
            our NIS current account.

      |_|   Our NIS current account.

      We acknowledge and warrant that all sums debited to our account as
      aforesaid and not paid when due shall, in the absence of a credit balance
      or agreed overdraft, carry default interest at an agreed rate or, in the
      absence of agreement, at the highest rate prevailing in your bank on
      overdue debit balances in foreign currency or local currency as the case
      may be.

15.   EXCHANGE RATE

      For the purpose of carrying out this agreement, every sale of loan
      currency shall be calculated at the lowest rate for transfers and drafts
      published by you on the date of sale and every purchase shall be


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      calculated at the highest rate for transfers and drafts published by you
      on the data of purchase unless a different rate is agreed between us
      further to a request to buy or sell currency, as the case may be, served
      by us on you not later than 11:00 a.m. on the date of purchase or sale as
      aforesaid.

16.   APPLICABILITY OF DOCUMENTS

      The provisions of the debit agreement and account-opening documents
      (hereinafter "documents") shall also apply to our obligations hereunder
      provided that in case of conflict between the provisions of this
      instrument and the documents, the provisions of this instrument shall
      prevail.

17.   INTERPRETATION

      In this instrument the plural shall include the singular and vice-versa.

                                          PEC ISRAEL FINANCE CORPORATION LTD.

                                          s/JON BOOCK   s/MICHEL DAHAN
                                          --------------------------------------
                                                Signature of applicants(s)


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