---

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Exhibit 4.93

| | September
25, 2008
| | ------------------

Tower Semiconductor Ltd.

Re:   Undertaking

|1. | General
Provisions
|-- | ------------------

| | 1.1. | This
undertaking (hereinafter: this Undertaking) has been
               furnished by Israel Corporation Ltd. (hereinafter: the Company or
the Safety Net Investor) as                part of arrangements that
were requested by Bank Hapoalim B.M. and Bank Leumi                le-Israel B.M.
(hereinafter: the Banks) in order to                facilitate, and as
a condition to, the debt restructuring pursuant to the letter                between the
Banks, Tower Semiconductor Ltd. (hereinafter: Tower) and the
Company, dated August 19, 2008 (the                MOU). This
Undertaking shall neither confer any rights or                remedies upon, nor create
any obligations by, the Company to any person                (including, for the
avoidance of doubt, any of Towers shareholders), other                than Tower.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 1.2. | This
Undertaking is furnished by the Company in connection with Towers
               obligation under the Facility Agreement to raise Additional Capital (as
defined                in Section 2 below) of US $20 million by no later than
December 31,                2009.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 1.3. | The
maximum aggregate amount of the Safety Net Investments (as defined in
               Section 2 below), that Tower may require from the Company pursuant to
this                Undertaking is limited to US $20 million. The said maximum
aggregate amount                of Safety Net Investments by the Company will be
decreased by any amount                actually raised as Additional Capital by Tower
prior to December 31, 2009.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | Definitions
and Interpretation
|-- | ------------------------------

| | With
regard to this Undertaking, the terms below shall have the following meanings:
| | -----------------------------------------------------------------------------------

| | 2.1. | Additional
Capital shall mean US $20 million which Tower                is required
to raise pursuant to clause 16.27 of the Facility Agreement, a                copy
of which clause is attached as Schedule 1 hereto.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.2. | Business
Day means a day (other than Friday or Saturday) on                which banks
generally are open for trading in Israel in US Dollars.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.3. | Capital
Notes means the Capital Notes (in the same form, mutatis mutandis, as
those issued to the Company by Tower on or about the                date of this
Undertaking), that will be convertible into ordinary shares of                Tower at a
rate equal to the Amount to be Paid (as defined below in Section 3.1)
               pursuant to each Contribution Notice divided by the lower of: (i) the
               average closing price of Towers ordinary shares on the NASDAQ for
the last                ten trading days prior to the date on which such Safety Net
Investment is made,                and (ii) US $0.71 per share, representing
the average closing price of                the ordinary shares of Tower on the NASDAQ
for the last ten trading days prior                to August 7, 2008.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

---

| | 2.4. | Contribution
Notice means a notice substantially in the form                set out in Schedule 2 hereto pursuant to which Tower requests a                Safety Net Investment to be
made pursuant to Section 3 below.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.5. | Expiry
Date means the earliest of: (i) the date on which                Tower
shall have fulfilled all of its obligations under clause 16.27 of the
               Facility Agreement (including, if applicable, by way of any written
amendment or                written waiver by the Banks (if any) to clause 16.27
that may reduce                Towers obligations thereunder); (ii) December 31,
2009 (subject                to Section 4); and (iii) the date on which Safety
Net Investments in                an amount of US $20 million are made or the Safety
Net Investments made                plus the Additional Capital raised by Tower equals or
exceeds US $20                million.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.6. | Facility
Agreement shall mean the Facility Agreement that was                executed
between the Banks and Tower on January 18, 2001 including all
               amendments made from time to time thereto, as amended and restated on
               August 24, 2006, as further amended by Amendment No. 1 thereto
dated                September 10, 2007, and as further amended and restated on
               September 25, 2008.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.7. | Net
Cash Balance, on any date, means the cash balance in the                bank
accounts of Tower (on a Tower only, unconsolidated, basis) on such date,
               less outstanding payments to the Banks and to third parties which have
fallen                due prior to or on such date, exclusive of any payment of interest
or payment of                principal (other than a mandatory prepayment under clause 8
of the Facility                Agreement) by Tower to the Banks under the Facility
Agreement. Any such interest                or principal payments (other than a mandatory
prepayment under clause 8 of                the Facility Agreement) actually made by
Tower to the Banks after the date                hereof under the Facility Agreement but
prior to the date of calculation of the                Net Cash Balance, shall be deemed
to be part of the cash balance.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | For
the avoidance of doubt, any recordal in the books of any Bank of any technicalpayment
by Tower of the principal of its current Loans with the proceeds of new loans in
order to implement the debt restructuring, as contemplated in the second paragraph of
clause 2.1 of the Facility Agreement, shall not be considered a payment of
principal.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.8. | Paid-in
Equity shall bear the meaning ascribed to such term                in clause 1.1.112
of the Facility Agreement, a copy of which clause is                attached as Schedule 3 hereto;
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.9. | Project
Accounts means: (i) account number 545454                at Bank
Hapoalim, Migdal Haemek Branch, No. 728, in the name of Tower; and
               (ii) account number 13030062 at Bank Leumi, Haifa Branch, in the
name                of Tower.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.10. | Safety
Net Investments means the amount received by Tower                from the
Safety Net Investor in cash in exchange for Capital Notes, or, in the
               circumstances referred to in the second paragraph of Section 3.1
below,                Paid-in Equity or other securities of Tower, in form and substance
satisfactory                to Tower, the Company and the Banks (in the case of Paid-in
Equity, in the same                number of shares, or in the case of other securities
as aforesaid, convertible                into the same number of shares, in each case as
determined with respect to the                Capital Notes in accordance with Section 2.3
above), issued to the Company                by Tower.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

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| | 2.11. | TIC
Amendment Closing Date Investment means the investment of                US $20 million
by way of capital notes made by the Company in Tower on                or about the date
of this Undertaking.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.12. | In
this Undertaking, unless the context otherwise requires:
| | ----- | -----------------------------------------------------------

| | 2.12.1. | Affiliate,
with respect to any person, mean any company which                controls, is controlled
by, or under common control with, such person; control shall in this
clause 2.12.1 and in                clause 2.12.5 below bear the meaning
assigned to such term in                Section 1 of the Securities Law, 1968;
| | ------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.12.2. | including means
including, without limiting the generality of                any description preceding
such terms;
| | ------- | --------------------------------------------------------------------------------------------------------------------

| | 2.12.3. | law shall
mean any Israeli statute, law, regulation, treaty,                rule, official
directive, request or guideline of any governmental, fiscal,                monetary or
regulatory body, agency, department or regulatory, self-regulatory                or
other authority or organisation;
| | ------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.12.4. | a
person shall be construed as a reference to any person,
               firm, company, corporation, government, state or agency of a state or any
               association or partnership (whether or not having separate legal
personality) or                two or more of the aforegoing;
| | ------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.12.5. | Subsidiary of
a person means any company which is directly or                indirectly controlled by
such person; and
| | ------- | ------------------------------------------------------------------------------------------------------------------------

| | 2.12.6. | US Dollars denotes
the lawful currency of the United                States of America.
| | ------- | ----------------------------------------------------------------------------------------

| | 2.13. | Nothing
herein shall deem the Company to be a party to the Facility Agreement.
| | ----- | ------------------------------------------------------------------------------

|3. | The
Undertaking
|-- | ---------------

| | 3.1. | If
from the date hereof and until the Expiry Date Towers Net Cash Balance
               is less than US $10 million (subject to Section 4 below), Tower
shall                send a Contribution Notice to the Company requiring the Company to
make a Safety                Net Investment, in an amount equal to the larger of: (i) the
amount by                which Towers Net Cash Balance on that date is less than US $10
               million; and (ii) the amount of US $2 million (hereinafter: the
Deficient Amount). The Deficient Amount will in no event
               exceed the difference between: (1) US $20 million and (2) the sum of:
               (a) the amount of Additional Capital in fact raised by Tower by such
date                (including Safety Net Investments already made by the Company
pursuant to this                Undertaking by way of Capital Notes or Paid-in Equity);
and (b) Safety Net                Investments already made by the Company pursuant
to this Undertaking in                accordance with the next following paragraph by way
of securities of Tower                (other than Capital Notes or Paid-in Equity) in
form and substance satisfactory                to Tower, the Company and the Banks (Other
Acceptable                Securities) (the relevant amount as aforesaid as
shall be the subject                of a Contribution Notice, hereinafter: the Amount
to be                Paid). The Company irrevocably undertakes that in the
event that a                Contribution Notice will be delivered as aforesaid, the
Company will make, a                Safety Net Investment in Tower in an amount equal to
the Amount to be Paid, by                no later than two Business Days after the date
such Contribution Notice is                received by the Company.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

---

| | Such
investment as aforesaid shall be made in Capital Notes unless prevented from doing so, in
which event such investment shall be Paid-in Equity or in other Acceptable Securities (in
the case of Paid-in Equity, in the same number of shares, or in the case of Other
Acceptable Securities as aforesaid, convertible into the same number of shares, in each
case as determined with respect to the Capital Notes in accordance with Section 2.3
above). This Undertaking is in addition to the TIC Amendment Closing Date Investment and,
for the avoidance of doubt, the TIC Amendment Closing Date Investment shall not be
considered a Safety Net Investment or Additional Capital hereunder.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.2. | For
the avoidance of doubt, amounts invested by the Safety Net Investor by way
                    of Paid-in Equity in a rights offering or private placement, as the
case may be,                     shall also be counted as Safety Net Investments procured
to be made by the                     Company for purposes of this Undertaking (as well
as Additional Capital pursuant                     to Section 3.1 above).
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.3. | Payments
made in respect of any Safety Net Investment pursuant to this                     Section 3
shall be made only by way of cash deposit in US Dollars into                     one
of the Project Accounts.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.4. | Within
two Business Days after receipt of each Safety Net Investment, Tower
                    shall issue Capital Notes (or, in the event that the second paragraph
of                     Section 3.1 above shall be applicable, Paid-in Equity or
Other Acceptable                     Securities) to the Company and shall record such
issuance of Capital Notes (or                     Paid-in Equity or Other Acceptable
Securities as aforesaid) in the name of the                     Company in the records of
the Tower.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.5. | Tower
will use its best efforts to obtain the approval of the Tel-Aviv Stock
                    Exchange for the listing of the shares underlying the Capital Notes
(or Paid-in                     Equity or Other Acceptable Securities as aforesaid).
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | Termination
or Suspension of the Undertaking
|-- | --------------------------------------------

| | 4.1. | This
Undertaking shall terminate in the event that: (i) the Banks demand
               immediate payment of the outstanding amounts due to the Banks under the
Facility                Agreement; or (ii) the provisions of clause 17.8 of the
Facility                Agreement become applicable to Tower (other than in the case of a
solvent                re-organisation or proceedings with respect to less than all of
Towers                revenues or assets), as a result of Proceedings instituted by
the Banks,                provided that such termination shall not apply in the event
that the Banks               demand or proceedings as aforesaid was made or were
instituted, as applicable,                following any Proceedings as referred to in
clause 17.8 of the Facility                Agreement (including, for the avoidance
of doubt, any freeze order (Hakpaat Halichim) instituted by Tower, any
Affiliate of Tower,                the Company or any Affiliate of the Company.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

---

| | 4.2. | In
the event that the provisions of clause 17.8 of the Facility Agreement
               shall be applicable to Tower (other than in the case of a solvent
               re-organisation or proceedings with respect to less than all of Towers
               revenues or assets) due to Proceedings instituted against Tower by a third
party                (that is , a person other than Tower, any Affiliate of Tower, the
Company or any                Affiliate of the Company), the Companys obligation to
make Safety Net                Investments shall be suspended for so long as such
provisions of                clause 17.8 are still in effect. Notwithstanding the
suspension of the                Companys obligations as aforesaid, once such
suspension is lifted, the                Company will be obligated, upon the lifting of
such suspension, to make Safety                Net Investments in compliance with
Contribution Notices given prior to or during                the period of such
suspension ( provided that such suspension is lifted on or                prior to
December 31, 2009.).
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | Entry
of this Undertaking into Effect
|-- | -------------------------------------

| | This
Undertaking will become effective upon:
| | --------------------------------------------

| | 5.1. | the
signature of, and fulfillment of the conditions precedent set out in                clause 3
of, the Amending Agreement to the Facility Agreement, dated                September 25,
2008 (the Amendment) and confirmation                thereof by the
Banks and Tower pursuant to clause 3.1 of the Amendment;                provided
that, for the purpose of this Section 5.1, any condition precedent
               which is waived by the Banks, shall not be considered a condition
precedent set                out in said clause 3; and
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.2. | the
Amendment, this Undertaking and the issuance of the Capital Notes have
               received all necessary approvals of the Tower audit committee, Board of
               Directors and shareholders.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. | Company
Obligation
|-- | ------------------

| | Subject
only to the express provisions of this Undertaking, the obligations of the Company under
this Undertaking constitute the irrevocable and unconditional obligations of the Company
and, for the avoidance of doubt, neither such obligations nor the rights, powers and
remedies conferred upon Tower by this Undertaking or by law shall be discharged or
otherwise affected by the failure by Tower to comply with clause 16.27 of the
Facility Agreement or with its undertaking as set out in the foot of this Undertaking
above Towers signature.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. | No
Set-Off or Counterclaim
|-- | --------------------------

| | All
payments required to be made by the Company hereunder shall be calculated without
reference to any set-off or counterclaim and shall be made free and clear of and without
deduction for or on account of any set-off or counterclaim.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

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|8. | Representations
and Warranties
|-- | ------------------------------

| | 8.1. | The
Company makes the representations and warranties set out in           Sections 8.2
to 8.6 (inclusive) below on the date hereof and on the date on           which this
Undertaking becomes effective pursuant to Section 5 above. The           Company
acknowledges that each of the Banks has entered into the Amendment in           reliance
on these representations and warranties.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.2. | It
is a company limited by shares, duly incorporated and validly existing under
          the laws of the place of its incorporation and has the power to own its
property           and assets and carry on its business as it is now being and will be
conducted.           No administrator, examiner, receiver, liquidator or similar officer
has been           appointed with respect to it or any material part of its assets nor
(so far as           it is aware) is any petition or proceeding for such appointment
pending.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

---

| | 8.3. | It
has the power to enter into and perform this Undertaking and the transactions
          to be implemented pursuant thereto and has taken all necessary action to
          authorise the entry into and performance thereof. Without derogating from the
          generality of the foregoing, all authorisations, actions, approvals, consents
          and other matters required by law or by the Companys constitutional
          documents for its provision and performance of this Undertaking have been
          obtained or effected and are in full force and effect.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.4. | This
Undertaking constitutes its legal, valid, binding and enforceable           obligations
of the Company.
| | ---- | ------------------------------------------------------------------------------------------------------------

| | 8.5. | The
entry into and performance of this Undertaking and the transactions to be
          implemented pursuant thereto do not conflict with:
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------

| | 8.5.1. | any
law or regulation or any official or judicial order applicable to it in any
          respect, or
| | ------ | -----------------------------------------------------------------------------------------------------

| | 8.5.2. | its
constitutional documents or any of its resolutions (having current effect)           in
any respect, or
| | ------ | -----------------------------------------------------------------------------------------------------------

| | 8.5.3. | any
agreement or instrument to which it is a party or which is binding upon it           or
on any of its assets.
| | ------ | -----------------------------------------------------------------------------------------------------------------

|9. | Binding
Agreement; No Transfer
|-- | ------------------------------

| | Without
derogating from the last sentence of Section 1.1, this Undertaking shall be binding on and
enure to the benefit of each party hereto. Neither the Company nor Tower shall assign all
or any of its rights, benefits and obligations under this Undertaking provided, that
nothing herein shall prohibit the Company from procuring that a Subsidiary of the Company
makes a Safety Net Investment and receives the Capital Notes related thereto.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10. | Remedies
and Waivers
|--- | --------------------

| | No
failure to exercise, nor any delay in exercising on the part of Tower, on the one hand, or
the Company, on the other hand, any right or remedy hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any right or remedy prevent any
further or other exercise thereof or the exercise of any other right or remedy. The rights
and remedies herein provided are cumulative and not exclusive of any rights or remedies
provided by law. No waiver by Tower of any right hereunder shall be effective without the
prior written consent of the Banks.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11. | Notices
|--- | -------

| | 11.1. | Notices
to be given hereunder shall be in writing and may be given personally,                by
facsimile or, if not available, as required by Section 11.2 below. Any
               notice to be given to a party to another party must be given during normal
               business hours of such recipient party to the person and at the address
               designated below. If notice is sent by facsimile during normal business
hours as                aforesaid, it shall be deemed to have been served when
confirmation of receipt                by the intended recipient has been received. All
notices given by facsimile                shall be confirmed by letter dispatched in the
manner provided in                Section 11.2 within 24 (twenty-four) hours of
transmission.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

---

| | 11.2. | Any
other notices to be given hereunder shall be served on an entity by prepaid
               express registered letter (or nearest equivalent) to its address given
below or                such other address as may from time to time be notified for this
purpose and any                notice so served shall be deemed to have been served
within five days after the                time at which such notice was posted and in
proving such service, it shall be                sufficient to prove that the notice was
properly addressed and posted:
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 
| |  | 

| |         |                 |                                                                
| | ------- | --------------- | ---------------------------------------------------------------
|
|
|
|
| | 11.2.1. | to the Company: | Israel Corporation Ltd. 23 Arania St. Millennium Tower Tel-Aviv

| |            |                
| | ---------- | ---------------
|
|
|
|
| | Facsimile: | 03-684-4574    
| | Attention: | Avisar Paz, CFO

| |                                     |                    
| | ----------------------------------- | -------------------
|
|
|
|
| | with a copy to:                     | Gornitzky &Co.     
| | (which shall not constitute notice) | 45 Rothschild Blvd.
| |                                     | Tel-Aviv 65784     

| |            |                       
| | ---------- | ----------------------
|
|
|
|
| | Facsimile: | 03-560-6555           
| | Attention: | Zvi Ephrat, Adv. and  
| |            | Benjamin Waltuch, Adv.

| |         |              |                                                           
| | ------- | ------------ | ----------------------------------------------------------
|
|
|
|
| | 11.2.2. | to Tower at: | Tower Semiconductor Ltd. P.O. Box 619 Migdal Haemek Israel

| |            |                        
| | ---------- | -----------------------
|
|
|
|
| | Facsimile: | (04) 654 7788          
| | Attention: | Chief Executive Officer

| |                                     |                  
| | ----------------------------------- | -----------------
|
|
|
|
| | with a copy to:                     | Yigal Arnon & Co.
| | (which shall not constitute notice) | 1 Azrieli Center 
| |                                     | Tel-Aviv 67021   

| |            |                        
| | ---------- | -----------------------
|
|
|
|
| | Facsimile: | (03) 608 7714          
| | Attention: | David H. Schapiro, Adv.

| | 11.3. | A
copy of any notices sent under this Section 11 shall be sent:
| | ----- | ---------------------------------------------------------------

| |         |                      |                                                                     
| | ------- | -------------------- | --------------------------------------------------------------------
|
|
|
|
| | 11.3.1. | to Bank Hapoalim at: | Corporate Division Migdal Levenstein 23 Menachem Begin Road Tel-Aviv

| |            |                   
| | ---------- | ------------------
|
|
|
|
| | Facsimile: | (03) 567 2995     
| | Attention: | Head of           
| |            | Corporate Division

| |         |                   |                                                    
| | ------- | ----------------- | ---------------------------------------------------
|
|
|
|
| | 11.3.2. | to Bank Leumi at: | Corporate Division 32 Yehuda Halevi Street Tel-Aviv

| |            |                   
| | ---------- | ------------------
|
|
|
|
| | Facsimile: | (03) 514 9017     
| | Attention: | Manager of Hi-Tech
| |            | Industries Section
| |            |                   



---

---

|12. | Amendments
|--- | ----------

| | Any
addition, variation, modification or amendment to this Undertaking shall not be effective
unless any such addition, variation, modification or amendment is in writing and signed by
the authorised signatories of the Company and Tower and approved in writing by the Banks.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13. | Counterparts
|--- | ------------

| | This
Undertaking may be executed in any number of counterparts and by facsimile signature and
all of such counterparts taken together shall be deemed to constitute one and the same
instrument.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|14. | Governing
Law And Jurisdiction
|--- | ------------------------------

| | This
Undertaking shall be governed by and shall be construed in accordance with Israeli law and
the courts of Tel-Aviv-Jaffa shall have exclusive jurisdiction to hear any matters.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|15. | Entire
Agreement
|--- | ----------------

| | 15.1. | This
Undertaking constitutes the entire agreement between the parties with
               respect to the subject-matter hereof and supersedes any prior agreement,
or                arrangement amongst the parties. Drafts of this Undertaking exchanged
between                the parties shall not be used in interpretation of this
Undertaking.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 15.2. | Nothing
in this Undertaking shall in any way derogate from the obligations and
               undertakings under the outside investment undertaking attached hereto as
               Schedule 4.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|16. | Partial
Invalidity
|--- | ------------------

| | If
any provision of any of this Undertaking is or becomes illegal, invalid or unenforceable
in any respect under the law of any jurisdiction, neither the legality, validity or
enforceability of the remaining provisions hereof nor the legality, validity or
enforceability of such provision under the law of any other jurisdiction shall in any way
be affected or impaired thereby.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

[Signature Page to
Safety Net undertaking]

Sincerely,

Israel Corporation Ltd.

____________________________
By: _________________________
Title: ________________________



---

---

We hereby confirm and agree to the
above and confirm that all corporate action to be taken by us (including by our Board of
Directors, Audit Committee and by our shareholders) in order to approve the contents of
the above Undertaking has been duly and properly obtained and the terms hereof constitute
our legal, valid, binding and enforceable obligations

We undertake to use commercially
reasonable efforts to fulfill our obligations to raise the US $20 million of new
funds required under clause 16.27 of the Facility Agreement, which clause we will not
amend without the prior written consent of Israel Corporation Ltd.

Tower Semiconductor Ltd.

____________________________
By: _________________________
Title: ________________________



---

---

# S C H E D U L E  1

# Clause 16.27 of the
Facility Agreement

Investments
in the Borrower

The Borrower shall procure the
receipt by it by no later than December 31, 2009 of an amount of at least US $20,000,000
(twenty million United States Dollars) in: (a) Paid-in Equity; or (b) capital
notes in form and substance the same as those issued to TIC on or about the Amendment
Closing Date. For the purposes of the aforegoing, the Borrowers obligation as
aforesaid is in addition to the investment of US $20,000,000 (twenty million United
States Dollars) in capital notes made by TIC on or about the Amendment Closing Date which
shall not be taken into account for this clause 16.27. For the avoidance of doubt,
nothing contained in the TIC Safety Net Undertaking shall in any way derogate from the
Borrowers obligations under this clause 16.27.



---

---

# S C H E D U L E  2

# Form of
Contribution Notice

|      |                                                                    
|----- | -------------------------------------------------------------------
|
|
|
|
|FROM: | Tower Semiconductor Ltd. ("Tower")                                 
|     
|To:   | Israel Corporation Ltd.                                            
|     
|DATE: | [insert date, which shall be a date on or prior to the Expiry Date]
|      |                                                                    

---

Dear Sirs,

|1. | We refer to the Undertaking dated September 25, 2008 (the
          Undertaking) given by you to Tower. Terms defined in the Undertaking
          shall have the same meaning in this notice.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | The Net Cash Balance was calculated as follows:
|-- | -----------------------------------------------

| | 2.1 | Cash
Balance:
| | --- | -------------

| | Tower's
 cash  balance  (based on Tower's  bank  account  balances) as of ____ is ____.
| | ---------------------------------------------------------------------------------------

| | 2.2 | Outstanding
Payments due to Third Parties:
| | --- | ------------------------------------------

| | [payee]_______
- US $____ due on ____, for _______.
| | ---------------------------------------------------

| | [payee]_______
- US $____ due on ____, for _______.
| | ---------------------------------------------------

| | 2.3 | Outstanding payments due to the Banks (other than payments that would be included in
paragraph 2.4 below):
| | --- | ----------------------------------------------------------------------------------------------------------

| | Bank
Hapoalim - US $____ due on ____, for _______.
| | --------------------------------------------------

| | Bank
Leumi - US $ ____ due on ____, for _______.
| | ------------------------------------------------

| | 2.4 | Actual
 Principal  (other than  mandatory  prepayment  under  clause 8  of the  Facility
              Agreement) and Interest Payments made to the Banks since September 29,
2008: ________
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Bank
Hapoalim - US $____ due on ____, for _______.
| | --------------------------------------------------

| | Bank
Leumi - US $ ____ due on ____, for _______.
| | ------------------------------------------------

|3. | We hereby give you notice that pursuant to the Undertaking, we require you to
          make, or procure to be made, a Safety Net Investment in an amount of at least
          US $________ (___________________) by no later than 2 Business Days
          following the date hereof, on the terms and conditions contained in the
          Undertaking.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
for and on behalf of
TOWER SEMICONDUCTOR LTD | 
|----------------------------------------------------------- | 



---

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# S C H E D U L E  3

# Clause 1.1.112 of
the Facility Agreement

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|Paid-in Equity |  | means the aggregate  amount paid-up in cash in
   respect  of  irredeemable   ordinary  share
   capital  of the  Borrower  or in respect of
   the  sale  of  warrants  by  the   Borrower
   where the purchase  price of such  warrants
   is  registered  as  owners'  equity  and is
   non-refundable   and   the   purchaser   or
   holder  of  such  warrants   shall  not  be
   entitled to claim  refund of such  purchase
   price  (or  any  part  thereof)  under  any
   circumstances    whatsoever.     For    the
   removal of doubt:  (i) for the  purposes of
   this Agreement,  any credit,  prepayment or
   other  entitlement  granted  to any  person
   in respect  of any  amount  paid-up in cash
   in  respect  of  the   irredeemable   share
   capital  of the  Borrower  or in respect of
   the  sale  of  any   warrant   pursuant  to
   agreements  with such  person  shall not be
   regarded  as  Paid-in  Equity  and shall be
   deducted  from the  amount of such  equity;
   (ii) the  subsequent   application  of  the
   debt of the  Borrower  represented  by such
   credit,  prepayment  or  other  entitlement
   on  account  of  the  purchase   price  for
   shares  of  the   Borrower   shall  not  be
   considered  Paid-in  Equity  at the time of
   such   application;   and   (iii) the   net
   amount   credited   in  the  books  of  the
   Borrower as  irredeemable  share capital as
   a   consequence   of  the   conversion   of
   convertible   debentures   or   any   other
   securities   of  the  Borrower   issued  or
   which may be issued by the  Borrower  shall
   not be  considered  Paid-in  Equity  at the
   time of such conversion;



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# S C H E D U L E  4

# Outside Investment
Undertaking



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