Document:

EX-4.1

 Exhibit 4.1 

SPIN-OFF AND DISTRIBUTION AGREEMENT 

SPIN-OFF AND DISTRIBUTION AGREEMENT, dated as of December     , 2014 (this “Agreement”), by and between
Israel Corporation Ltd., a company incorporated with limited liability organized under the laws of the State of Israel (“IC”), and Kenon Holdings Ltd., a company wholly-owned by IC, with limited liability organized under the laws of
Singapore (“Kenon”). Each of IC and Kenon is sometimes referred to herein as a “Party” and together, as the “Parties”). Capitalized terms used herein and not otherwise defined shall have the
respective meanings assigned to them in Appendix 1. 
 R E C I T A L S: 

WHEREAS, the board of directors of IC (the “IC Board”) has determined that it is in the best interests of IC and the IC
Shareholders to create a new publicly traded company that shall acquire the IC Transferred Businesses (the “Separation”), as an initial step towards completing the Distribution (as defined below); 

WHEREAS, Kenon desires to purchase the IC Transferred Businesses from IC and to assume the responsibilities for certain debts, obligations and
liabilities of the IC Transferred Businesses, upon the terms and subject to the conditions set forth herein; 
 WHEREAS, immediately after
the consummation of the acquisition of the IC Transferred Businesses and the issuance to IC of the Kenon Shares as set forth herein, IC shall distribute, on a pro rata basis, to the Record Holders all of the Distribution Shares and the Cash Dividend
(collectively, the “Distribution”). 
 NOW, THEREFORE, in consideration of the covenants, promises, and agreements herein
set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending legally to be bound, agree as follows. 

 

	1.	PURCHASE AND SALE. 

 1.1. At the Closing (as defined in Section 1.4), subject to the
terms and conditions provided below, (i) IC shall unconditionally and irrevocably sell, assign and transfer to Kenon and Kenon shall purchase, assume and accept from IC, the IC Transferred Assets and the IC Transferred Liabilities, free and
clear of any Liens, subject to the limitations and restrictions set forth in Schedule 3.5 and (ii) IC shall effect a subscription of Kenon Shares in the amount of the Cash Investment Amount. The IC Transferred Equity Interests shall
be sold by IC together with all rights and privileges attaching to them as at the Closing Date (including the right to receive all dividends or distributions declared, made or paid on or after the Closing Date). 

1.2. In consideration for the IC Transferred Businesses and the Cash Investment, at the Closing, Kenon shall issue to IC the Kenon
Shares, credited as fully paid up (the “Purchase Consideration”), and as soon as possible thereafter, IC shall distribute the Distribution Shares, together with the Cash Dividend from its cash reserves, pro rata among all of the
Record Holders.  

 1.3. All transfer, income, sales, use tax, value-added, gain, stamp, registration, documentary,
personal and property and other taxes shall be borne (A) solely by IC where they (i) arise out of or relate to the conveyance of the IC Transferred Businesses pursuant to this Agreement where such taxes are borne by the transferring party
according to any applicable Law; or (ii) arise out of or relate to receipt of the Purchase Consideration pursuant to this Agreement, where such taxes are borne by the receiving party according to any applicable Law; (B) solely by Kenon
where they arise out of or relate to the receipt of the IC Transferred Businesses, pursuant to this Agreement, where such taxes according to any applicable Law shall be borne by the receiving Party; and (C) by IC or the Record Holders, as
applicable, where they arise out of the Distribution. 
 1.4. The closing of the transactions contemplated in this Agreement (the
“Closing”) shall take place on the date hereof, at the offices of Yigal Arnon & Co., 1 Azrieli Center, Tel Aviv at 10.00 a.m. local time or at such other time as the Parties may mutually agree upon in writing. The date on
which the Closing occurs shall be referred to herein as the Closing Date (the “Closing Date”). 
  

	2.	CLOSING. 

 2.1. At the Closing, the following transactions shall occur, which
transactions shall be deemed to take place simultaneously and no transaction shall be deemed to have been completed or any document delivered until all such transactions have been completed and all required documents delivered: 

2.1.1. IC shall deliver to Kenon the following documents or cause the following actions to be completed: 

2.1.1.1. (i) certificates representing all of the IC Transferred Equity Interests in each of the IC Transferred Companies (other than Tower),
duly endorsed to Kenon, (ii) originally executed irrevocable instructions letters (including any legal opinion required in connection therewith) to Tower’s transfer agent, American Stock Transfer (“AST”) and Tower’s
broker, Oppenheimer Israel Ltd. (“Oppenheimer”) instructing each of AST and Oppenheimer to transfer in book entry form all of the IC Transferred Equity Interests in Tower registered with it to Kenon or, in case of securities held by
Oppenheimer, to Kenon’s securities account at Oppenheimer. 
 2.1.1.2. such instruments of transfer, conveyance or assignment,
including share transfer deeds, necessary for the transfer of all of IC’s rights, title and interest in the IC Transferred Assets and the IC Transferred Liabilities; 

2.1.1.3. copies of such part of the minutes of the meetings of each of the IC Board and the General Meeting, containing the resolutions
approving the transactions contemplated by this Agreement, which copies shall be executed by IC’s legal advisors certifying that such resolutions were duly approved by the majorities required by applicable Law and not amended in any manner;

 2.1.1.4. a certificate in the form attached hereto as Exhibit 2.1.1.4, executed by IC, certifying that the representations
and warranties contained in Section 3 are true and correct in all respects as of the Closing as though restated at the Closing and that the covenants contained in this Agreement to be complied with by IC on or before the Closing shall have been
complied with in all material respects; 
 2.1.1.5. certifications from counsel of each of the IC Transferred Companies (with the exception
of Tower) in the form attached hereto as Exhibit 2.1.1.5 stating that the IC Transferred Equity Interests have been duly transferred to Kenon; 

  
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 2.1.1.6. payment of the Cash Investment Amount, by wire transfer to the account of Kenon, the
details of which will be provided to IC prior to the Closing; 
 2.1.1.7. execute and deliver to Kenon each of the Loan Agreement and
Pledge Agreement; 
 2.1.1.8. without derogating from Kenon’s obligations under Sections 2.1.2.3 and 2.1.2.4 below, cause the
crediting of (x) the Kenon Shares and (y) the ordinary shares in the capital of Kenon held by IC immediately prior to the Closing Date (collectively, the “Distribution Shares”) in DTC, to the TASE Account and to any Holder
account, if required; 
 2.1.1.9. take such action as shall be required to ensure payment of the Cash Dividend to the Record Holders
promptly following the Record Date; and 
 2.1.2. Kenon shall deliver to IC the following documents or cause the following actions to be
completed: 
 2.1.2.1. duly executed minutes of the resolutions of the Kenon Board and sole Shareholder, evidencing approval of the
transactions contemplated by this Agreement; 
 2.1.2.2. certifications from Kenon’s legal advisors stating that (i) all
approvals required for the issuance of the Kenon Shares under the Articles of Association of Kenon and the Companies Act, Chapter 50 of Singapore have been obtained, and (ii) the Kenon Shares have been duly issued to IC in the form attached
hereto as Exhibit 2.1.2.2. 
 2.1.2.3. issue the Kenon Shares to IC; 

2.1.2.4. deliver the Distribution Shares to the TASE Account with the DTC, by way of direct registration in book-entry form and remove IC as
a shareholder of Kenon in its Register of Members; 
 2.1.2.5. execute and deliver any instruments of transfer, conveyance or assignment,
including share transfer deeds, necessary for the transfer of all of IC’s rights, title and interest in the IC Transferred Assets and the IC Transferred Liabilities; and 

2.1.2.6. execute and deliver to IC each of the Loan Agreement and Pledge Agreement. 

2.2. On or before the Closing, IC shall arrange for transfer to Kenon of all existing corporate books and Records in IC’s possession or
control relating to the IC Transferred Businesses; provided, however, that in the event that any such documents relate to both the IC Transferred Businesses and IC, only copies of such documents shall be furnished to
Kenon. 

  
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	3.	REPRESENTATIONS AND WARRANTIES OF IC. 

 IC hereby represents and warrants to Kenon as of the date hereof
and as of the Closing as follows: 
 3.1. IC has all necessary corporate power and authority to enter into this Agreement and the Ancillary
Agreements, to perform its obligations hereunder and under the Ancillary Agreements and to consummate the transactions contemplated hereby and thereby. 

3.2. The execution and delivery of this Agreement and the Ancillary Agreements by IC, the performance by IC of its obligations hereunder and
thereunder and the consummation by IC of the transactions contemplated hereby and thereby have been duly authorized by all requisite corporate action on the part of IC and no other corporate action on the part of IC is necessary to authorize this
Agreement and the Ancillary Agreements or to consummate the transactions contemplated hereby and thereby. This Agreement has been, and the Ancillary Agreements shall have been as of the Closing Date, duly executed and delivered by IC, and this
Agreement constitutes, and such Ancillary Agreements will constitute as of the Closing Date, the legal, valid and binding obligations of IC, enforceable against it in accordance with their terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization, debtor relief or similar Laws affecting the rights of creditors generally. 
 3.3. Subject to
obtaining the Required Consents (as defined below), the execution, delivery and performance of this Agreement or any Ancillary Agreement by IC does not and will not (a) violate or conflict with the organizational or charter documents of IC;
(b) conflict with or violate any Law or governmental order pertaining to IC; (c) result in any breach of, or constitute a default (or event which with the giving of notice or lapse of time, or both, would become a default) under, or give
to any Person any rights of termination, amendment, acceleration or cancellation of any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise or other instrument to which IC is a party or by which IC is bound; or
(d) result in the creation of any Lien on any of the IC Transferred Assets or the Cash Investment Amount. 
 3.4. Except as set forth
in Schedule 3.4 (the “Required Consents”), the execution and delivery of this Agreement and the Ancillary Agreements by IC do not, and the performance of this Agreement and the Ancillary Agreements by IC, including, without
limitation, transfer and assignment of all the IC Transferred Businesses, will not, require IC to obtain any consent, approval, authorization or other action to be taken by IC, or require IC to make any filing with or give notification to, any
Governmental Entity or any other Person. For the avoidance of doubt, Kenon shall be solely responsible for obtaining the consents listed in items 1, 2, 3 and 4 of Schedule 3.4. 

3.5. Subject to the limitations, restrictions and matters set forth in Schedule 3.5, IC holds good and marketable title to and has
valid interests in all of the IC Transferred Assets, free and clear of any and all Liens. At and as of the Closing, subject to the limitations set forth in Schedule 3.5(a), Kenon shall have good, valid and marketable title to all of the IC
Transferred Assets, free and clear of any Liens and shall have full right and power to the possession rights of the IC Transferred Assets so transferred. Other than the IC Transferred Equity Interests, IC has no other equity interests in the IC
Transferred Companies. To IC’s knowledge: (a) IC’s holding percentage in the issued and outstanding share capital of each of the IC Transferred Companies, as set forth in Appendix 1 hereto, is accurate and complete; and
(b) Schedule 3.5(b) sets forth an accurate and complete list of all options, warrants or other securities exercisable or convertible into securities, the issuance of which was approved by the board of directors or the applicable
authorized corporate organ of ICG, ICP, Quantum and Qoros, as applicable. 

  
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 3.6. Except as set forth in Schedule 3.6, there are no Legal Proceedings pending or, to
the Actual Knowledge of IC, threatened in writing, against IC with respect to or in connection with the IC Transferred Businesses. 

3.7. DISCLAIMER OF REPRESENTATIONS AND WARRANTIES. EACH OF IC AND KENON UNDERSTANDS AND AGREES THAT, EXCEPT AS EXPRESSLY SET
FORTH HEREIN OR IN ANY ANCILLARY AGREEMENT, NO PARTY TO THIS AGREEMENT, ANY ANCILLARY AGREEMENT OR ANY OTHER AGREEMENT OR DOCUMENT CONTEMPLATED BY THIS AGREEMENT OR OTHERWISE, IS REPRESENTING OR WARRANTING IN ANY WAY AS TO THE ASSETS, BUSINESSES OR
LIABILITIES TRANSFERRED OR ASSUMED AS CONTEMPLATED HEREBY OR THEREBY, AS TO ANY CONSENTS OR APPROVALS REQUIRED IN CONNECTION THEREWITH, AS TO THE VALUE OR FREEDOM FROM ANY SECURITY INTERESTS OF, OR ANY OTHER MATTER CONCERNING, ANY ASSETS OF SUCH
PARTY, OR AS TO THE ABSENCE OF ANY DEFENSES OR RIGHT OF SETOFF OR FREEDOM FROM COUNTERCLAIM WITH RESPECT TO ANY CLAIM OR OTHER ASSET, INCLUDING ANY ACCOUNTS RECEIVABLE, OF ANY PARTY, OR AS TO THE LEGAL SUFFICIENCY OF ANY ASSIGNMENT, DOCUMENT OR
INSTRUMENT DELIVERED HEREUNDER TO CONVEY TITLE TO ANY ASSET OR THING OF VALUE UPON THE EXECUTION, DELIVERY AND FILING HEREOF OR THEREOF. EXCEPT AS MAY EXPRESSLY BE SET FORTH HEREIN OR IN ANY ANCILLARY AGREEMENT, ALL IC TRANSFERRED ASSETS ARE BEING
TRANSFERRED ON AN “AS IS,” “WHERE IS” BASIS (AND, IN THE CASE OF ANY REAL PROPERTY, BY MEANS OF A QUITCLAIM OR SIMILAR FORM OF DEED OR CONVEYANCE) AND KENON AGREES ON BEHALF OF ITSELF, EACH MEMBER OF THE KENON GROUP, AND WITH
RESPECT TO ITSELF AND EACH SUCH MEMBER, ITS OFFICERS, DIRECTORS, EMPLOYEES AND SHAREHOLDERS, THAT NO CLAIMS SHALL BE BROUGHT AGAINST IC OR ANY OF ITS OFFICERS, DIRECTORS, EMPLOYEES AND SHAREHOLDERS, IN RESPECT OF THE CONDITION OR PRIOR MANAGEMENT OF
THE IC TRANSFERRED ASSETS, WITHOUT DEROGATING FROM KENON’S RIGHT TO BRING ANY CLAIMS AGAINST SUCH PERSONS WITH RESPECT TO ANY BREACH OF THIS AGREEMENT. 
  

	4.	REPRESENTATIONS OF KENON 

 Kenon hereby represents and warrants to IC as of the date hereof and as of the
Closing, as follows: 
 4.1. Kenon has all necessary corporate power and authority to enter into this Agreement and the Ancillary
Agreements, to perform its obligations hereunder and under the Ancillary Agreements and to consummate the transactions contemplated hereby and thereby. 

4.2 The execution and delivery of this Agreement and the Ancillary Agreements by Kenon, the performance by Kenon of its obligations hereunder
and thereunder and the consummation by Kenon of the transactions contemplated hereby and thereby have been duly authorized by all requisite corporate action on the part of Kenon and no other corporate action on the part of Kenon is necessary to
authorize this Agreement and the Ancillary Agreements or to consummate the transactions contemplated hereby and thereby. This Agreement has been, and the Ancillary Agreements shall have been as of 

  
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the Closing Date, duly executed and delivered by Kenon, and this Agreement constitutes, and such Ancillary Agreements will constitute as of the Closing Date, the legal, valid and binding
obligations of Kenon, enforceable against it in accordance with their terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, debtor relief or similar Laws affecting the rights of creditors generally. 

4.3 The Kenon Shares when issued, sold and delivered in accordance with this Agreement, will be duly authorized, validly issued, fully paid,
non-assessable, free of any preemptive rights, will have the rights, preferences, privileges, and restrictions set forth in Kenon’s Articles of Association, and will be free and clear of any liens, claims, encumbrances or third party rights of
any kind. Kenon is taking all required actions in order to ensure the registration of the Kenon Shares, their listing on the NYSE and their issuance to IC, in accordance with applicable Laws. 

 

	5.	CONDITIONS PRECEDENT TO CLOSING. 

 5.1. The consummation of the Separation will be
subject to the satisfaction of the conditions set forth in Section 6 of the IC Shareholder Circular and to the obtaining by IC of all other Required Consents. 

5.2. In addition, no Party will be obligated to consummate the transaction in case any order, injunction or decree issued by any Governmental
Entity of competent jurisdiction or other legal restraint or prohibition preventing the consummation of the Separation, Distribution, or any of the transactions related thereto shall be in effect. 

5.3. Each Party shall deliver or cause to be delivered such additional documents as may be necessary in connection with the consummation of
the transactions contemplated by this Agreement and the performance of their obligations hereunder. 
  

	6.	LIABILITY AND INDEMNIFICATION. 

 6.1. Following the Closing Date, except as otherwise
expressly set forth in this Section 6 and subject to the accuracy of any applicable IC representation and warranty set forth in Section 3, neither IC nor any member of the IC Group shall remain liable for any and all of the IC Transferred
Liabilities or Future Litigation, nor shall IC or any member of the IC Group be liable to Kenon for any Losses arising out of or in connection with the IC Transferred Liabilities or Future Litigation, whether the facts giving rise to such Losses
(whether known or unknown as of the Closing Date, where applicable), existed prior to or following the Closing Date. For the avoidance of doubt, except as otherwise expressly set forth in this Section 6 and irrespective of the accuracy of any
applicable IC representation and warranty set forth in Section 3, following the Closing Date, Kenon shall be liable for any and all of the obligations, commitments and undertakings of Kenon or IC relating to the IC Transferred Liabilities and Future
Litigation and shall be liable for any Losses incurred by Kenon or IC arising out of or in connection with the IC Transferred Liabilities and Future Litigation, whether the facts giving rise to such Losses (whether known or unknown as of the Closing
Date, where applicable), existed prior to or following the Closing Date. 
 6.2. Without derogating from the foregoing, following the
Closing Date, IC shall continue to be liable for the following: 
 6.2.1. The Legal Proceedings which existed as of the Closing Date, as
described in Schedule 3.6; 

  
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 6.2.2. Any and all tax Liabilities due from IC in respect of any period prior to the Closing in
respect of the IC Transferred Companies, IC Transferred Assets and IC Transferred Liabilities; 
 6.2.3. Any and all Liabilities in respect
of the Employees which existed through the later of (i) the Closing and (ii) the date on which the employment of such Employee by IC was terminated, regardless of whether such Liabilities arose in respect of the IC Transferred Businesses
or in the course of performing any other duties by the Employees at IC; 
 6.2.4. Any Liabilities of officeholders of IC (including the
Employees) for which IC has an existing obligation to indemnify, arising out of actions or omissions committed by them in the performance of their roles as officeholders of IC, before or after the Closing, including with respect to Liabilities
suffered by IC or Kenon in connection with Liabilities of such officeholders for which IC has an existing obligation to indemnify; 
 6.2.5.
Its obligation to provide the Credit Line to Zim; 
 6.2.6. The Guarantee for the Quantum Obligation; 

6.2.7. Any other obligations and liabilities agreed upon in writing prior to the Closing Date by the Parties. 

(collectively, the “IC Retained Liabilities”). 

6.3. Without derogating from the agreements and understandings set forth in section 3.7 herein, IC agrees to indemnify, defend, protect
and hold harmless Kenon, and, with respect to any Action against any of the following, also their officers, directors, employees, shareholders, agents and Representatives (collectively, the “Kenon Indemnified Parties”), at all times
from and after the Closing, from and against all Losses, incurred by any Kenon Indemnified Party as a result of or arising from (i) any of the IC Retained Liabilities and any other pending or contingent obligations, commitments, Guarantees,
Liabilities or undertakings of IC which are not IC Transferred Liabilities or Future Litigation; (ii) any breach of or default in connection with any of the covenants and agreements given or made by IC or any officer or director of IC in this
Agreement or any Ancillary Agreement; (iii) any misrepresentation or breach of any of the representations and warranties made by IC or any officer or director of IC in this Agreement or any Ancillary Agreement, which representations and
warranties shall survive and remain in full force and effect from the Closing until the third anniversary of the Closing; and (iv) any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a
material fact required to be stated therein or necessary to make the statements therein not misleading, with respect to the IC Shareholder Circular and IC Disclosure Documents. For the avoidance of any doubt, (i) IC shall not be required to
indemnify Kenon in connection with the performance of any of Kenon’s obligations pursuant to the Loan Agreement, and (ii) the provisions of this Section 6.3 shall not derogate from Kenon’s obligations (A) under any of the
Ancillary Agreements to repay to IC the amounts paid by IC in respect of Guarantees which are included in the Retained Liabilities, where such Guarantees have been exercised following the date hereof, or (B) with respect to the Kenon Disclosure
Documents or its indemnification obligations in connection therewith. For the purposes of this Section 6.3, Kenon shall be deemed to mean Kenon and/or its successors or assigns and/or any Person to which Kenon may transfer any of the IC
Transferred Companies (in respect of such transferred IC Transferred Companies). 

  
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 6.4. Kenon agrees to indemnify, defend, protect and hold harmless IC and, with respect to
any Action against any of the following, also their officers, directors, employees, shareholders, agents and Representatives (collectively, the “IC Indemnified Parties”), at all times from and after the Closing, from and against all
Losses, incurred by any IC Indemnified Party resulting from (i) the IC Transferred Liabilities or Future Litigation; (ii) any breach of or default in connection with any of the covenants and agreements given or made by Kenon or any officer
or director of Kenon in this Agreement or any Ancillary Agreement; (iii) any misrepresentation or breach of any of the representations made by Kenon or any officer or director of Kenon in this Agreement or any Ancillary Agreement, which
representations and warranties shall survive and remain in full force and effect from the Closing until the third anniversary of the Closing; and (iv) any untrue statement or alleged untrue statement of a material fact or omission or alleged
omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the Kenon Disclosure Documents. 

6.5. If any claim or liability (a “Third-Party Claim”) is asserted against any of the IC Indemnified Parties or the
Kenon Indemnified Parties, as applicable (the “Indemnitee”) by a third party after the Closing for which an indemnification obligation under the terms of Section 6.3 or 6.4 applies, then the Indemnitee shall notify the other Party
(the “Indemnitor”) within 20 days after the Third-Party Claim is asserted by a third party (said notification being referred to as a “Claim Notice”) and give the Indemnitor a reasonable opportunity to take part in
any examination of the books and Records of the Indemnitee relating to such Third-Party Claim and to assume the defense of such Third-Party Claim and in connection therewith and to conduct any proceedings or negotiations relating thereto and
necessary or appropriate to defend the Indemnitee and/or settle such Third-Party Claim. The expenses (including reasonable attorneys’ fees) of all negotiations, proceedings, contests, lawsuits or settlements with respect to any Third-Party
Claim shall be borne by the Indemnitor. If the Indemnitor agrees to assume the defense of any Third-Party Claim in writing within 20 days after the Claim Notice of such Third-Party Claim has been delivered, through counsel reasonably satisfactory to
Indemnitee, then the Indemnitor shall be entitled to control the conduct of such defense, and any decision to settle such Third-Party Claim, and shall be responsible for any expenses of the Indemnitee in connection with the defense of such
Third-Party Claim so long as the Indemnitor continues such defense until the final resolution of such Third-Party Claim. The Indemnitor shall be responsible for paying all settlements made or judgments entered with respect to any Third-Party Claim
the defense of which has been assumed by the Indemnitor. Except as provided in Section 6.6, no settlement of a Third-Party Claim will be effective unless both the Indemnitor and the Indemnitee approve it. A failure by the Indemnitee to timely notify
the Indemnitor of the Claim Notice shall not excuse Indemnitor from any indemnification liability except to the extent that the Indemnitor is adversely prejudiced by such failure. 

6.6. If the Indemnitor shall not agree to assume the defense of any Third-Party Claim in writing within 20 days after the Claim Notice of such
Third-Party Claim has been delivered, or shall fail to continue such defense until the final resolution of such Third-Party Claim, then the Indemnitee may defend against such Third-Party Claim in such manner as it may deem appropriate; provided that
(i) insofar as is reasonably practicable and reasonable, the Indemnitee shall take into account any instructions or 

  
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guidelines provided by the Indemnitor in writing; and (ii) the Indemnitee may only settle such Third-Party Claim on such terms agreed in writing by the Indemnitor, which written agreement
shall not be unreasonably withheld, delayed or conditioned. The Indemnitor shall promptly reimburse the Indemnitee for the amount of all settlement payments and expenses, legal and otherwise, incurred by the Indemnitee in connection with the defense
or settlement of such Third-Party Claim. If no settlement of such Third-Party Claim is made, then the Indemnitor shall satisfy any judgment rendered with respect to such Third-Party Claim before the Indemnitee is required to do so, and pay all
reasonable expenses, legal or otherwise, incurred by the Indemnitee in the defense against such Third-Party Claim. 
 6.7. Upon discovery of
any claim for which a Party has an indemnification obligation under the terms of Section 6.3 or 6.4 which does not involve a claim by a third party against the Indemnitee, the Indemnitee shall give prompt notice to Indemnitor of such claim and, in
any case, shall give Indemnitor such notice within 30 days of such discovery. A failure by Indemnitee to timely give the foregoing notice to Indemnitor shall not excuse Indemnitor from any indemnification liability except to the extent that
Indemnitor is adversely prejudiced by such failure. 
  

	7.	EXCHANGE OF INFORMATION. 

 7.1. Subject to any confidentiality obligations under any
applicable statutes or regulations, including obligations and laws protecting personal data, but without derogating from any of the Ancillary Agreements, including Section 7.1 of the Loan Agreement, each of IC and Kenon, agrees to use
commercially reasonable efforts to provide or make available, or cause to be provided or made available, to the other Party and the members of such other Party’s Group, at any time before, on or after the Closing Date, as soon as reasonably
practicable after written request therefor, any information (or a copy thereof) in the possession or under the control of such Party or in the case of Kenon its Group (to the extent that Kenon has to the power to cause the members of the Kenon Group
to provide such information) to the extent that such information relates to any of the IC Transferred Businesses or IC Retained Liabilities and (i) such information is reasonably required by the requesting Party to comply with its obligations
under this Agreement or any Ancillary Agreement; or (ii) such information is reasonably required by the requesting Party to comply with any obligation imposed by any Governmental Entity or applicable Law; provided,
however, that, such information shall be held in strict confidence (unless and only to the extent disclosure of such information is required under any applicable law) and shall be used only for such purposes and in compliance with
applicable Law, and provided further that in the event that the Party to whom the request has been made determines that any such provision of information could be detrimental to the Party providing the information,
violate any Law or agreement, or results in a waiver of any privilege available under applicable Law, including any attorney-client privilege, then the Parties shall use commercially reasonable efforts to permit compliance with such obligations to
the extent and in a manner that avoids any such harm or consequence.
 7.2. Without limiting the generality of the foregoing and subject to
the limitations set forth in Section 7.1, until the first Kenon fiscal year end occurring after the Closing Date (and for a reasonable period of time afterwards as required for each Party to prepare consolidated financial statements or complete a
financial statement audit for the fiscal year during which the Closing occurs), each Party shall use its commercially reasonable efforts to cooperate with the other Party’s information requests to enable (i) the other Party to meet its
timetable for dissemination of its earnings releases, financial statements 

  
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and, if applicable to such Party, management’s assessment of the effectiveness of its disclosure controls and procedures and its internal control over financial reporting in accordance with
Items 307 and 308, respectively, of Regulation S-K promulgated under the Exchange Act; and (ii) the other Party’s accountants to timely complete their review of the quarterly financial statements and audit of the annual financial
statements, including, to the extent applicable to such Party, its auditor’s audit of its internal control over financial reporting and management’s assessment thereof in accordance with Section 404 of the Sarbanes-Oxley Act of 2002,
the SEC’s and Public Company Accounting Oversight Board’s rules and auditing standards thereunder and any other applicable Laws. 

7.3. Kenon undertakes that following the Closing it shall act in accordance with Section 7.1 of the Loan Agreement in accordance with the
terms of the Loan Agreement. 
  

	8.	TERMINATION. 

 8.1. Subject to the approval of the Board of Directors of IC, this
Agreement may be terminated and the Distribution may be amended, modified or abandoned at any time prior to the Closing Date by and in the sole discretion of IC, without the approval or consent of any other Person, including Kenon. 

8.2. In the event of termination of this Agreement, this Agreement shall forthwith become void and there shall be no Liability on the part of
either Party (nor any of its directors, officers or employees) hereto. 
  

	9.	COVENANTS. 

 9.1. Kenon shall act in accordance with the terms and conditions of the
Guarantee Release Framework, provided that the remaining financial obligation to inject funds to Qoros or guarantee any payment relating to Qoros under the Guarantee Release Framework shall be up to an amount equal to RMB400 million (the
“Guarantee Framework Obligations”). For the avoidance of doubt, notwithstanding the effectiveness of the Guarantee Release Framework, any Guarantees provided by IC to Qoros which are included in the Retained Liabilities, shall
remain in effect (the “Remaining Qoros Guarantee”). However in the event of any exercise of the Remaining Qoros Guarantee, Kenon shall repay IC any amounts paid by IC in respect thereof, in accordance with Kenon’s obligations
under any of the Ancillary Agreements. 
 9.2. The Parties agree that following the Closing, no party shall take, permit or, cause any third
party to take or omit, permit to be omitted or cause any third party to omit to take, any action whether directly or indirectly, the result of which action or inaction would be or would be reasonably expected to be the failure of the Distribution
Shares to be traded on the TASE as soon as reasonably practicable following the Record Date. 
 9.3. As soon as reasonably practicable
following the Closing Date, the board of directors of Kenon shall grant options to purchase ordinary shares in the capital of Kenon to those officers and employees of IC who currently hold options to purchase IC Shares granted under the 2012 option
plan of IC, in accordance with the terms set forth in the IC Shareholder Circular, which options shall be granted in accordance with the terms of a certain tax ruling obtained from the ITA on August 17, 2014 in respect thereto, and shall file a
registration statement on Form S-8 registering the shares underlying such options. 
 9.4. IC agrees and covenants that following the
Closing Date, it shall permit the Employees to use any information regarding the IC Transferred Businesses, which they 

  
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acquired, whether in written form or orally, during the respective terms of their employment with the IC Group; subject only to any applicable confidentiality obligations towards Kenon or any
member of the Kenon Group. 
 9.5. IC shall cooperate with Kenon (at Kenon’s expense) in the defense of any third-party claim or
proceeding with respect to the IC Transferred Businesses, and make available to Kenon any documents, materials and other information in its possession or control that may be necessary for the defense of such claim or proceeding. 

9.6. Further Action. 

9.6.1. From and after the Closing, Kenon and IC shall (at their own reasonable expense) do all things necessary, proper or advisable under
applicable Laws, including signing and delivery of any documents and instruments, as reasonably requested by either party to put Kenon in effective and registered possession, ownership and control of the IC Transferred Assets and the IC Transferred
Liabilities, and cooperate fully with each other and with any Governmental Entities and third Persons in promptly seeking to obtain all required authorizations, consents, orders and approvals therefor. 

9.6.2. In case that during the period of twelve (12) months following the Closing, Kenon discovers any pre Closing component of the IC
Transferred Businesses, (such as, but not limited to, shares in, rights pertaining to or agreements entered into by the IC Transferred Businesses, but expressly excluding goodwill) (an “Additional Asset”) that is not
transferred to Kenon as of the Closing, then Kenon may request IC in writing to transfer such Additional Asset to Kenon, as if such item had been identified as an IC Transferred Asset under this Agreement and the Schedules thereto. As soon as
practicable after receipt by IC from Kenon of such request, IC shall provide written confirmation of the transfer of such asset to Kenon (unless IC in good faith believes that such Additional Asset should not be so treated), and such item shall
thereafter be deemed to have been transferred to Kenon. 
 9.7. Confidentiality. Expect as specifically set forth herein, including
under Section 7 above, without the prior written consent of the other Party (not to be unreasonably withheld, delayed or conditioned), each Party shall not (i) disclose to any Person (other than to the other Party or any member of the
other Party’s Group) in any manner, directly or indirectly, any confidential information or data relevant to the IC Transferred Businesses or the operation of the IC Transferred Businesses (in the case of IC) or to the businesses or operations
of the businesses operated as of the Closing Date by IC (in the case of Kenon) (the “IC Businesses”), whether of a technical or commercial nature, or (ii) use or permit or assist, by acquiescence or otherwise, any Person to
use, directly or indirectly, any confidential information in any manner which is competitive with the operation of the IC Transferred Businesses (in the case of IC), or the IC Businesses (in the case of Kenon) after the Closing. Each Party shall
take reasonable precautions to keep such applicable information confidential. 
  

	10.	DISPUTE RESOLUTION. 

 10.1. Except as otherwise specifically provided in any Ancillary
Agreement (the terms of which, to the extent so provided therein, shall govern the resolution of disputes, controversies or claims that are the subject of such Ancillary Agreement), the procedures for discussion, negotiation and arbitration set
forth in this Section 10 shall apply to all disputes, controversies or claims (whether arising in contract, tort or otherwise) that may arise out of or relate to, or arise under or in connection with, this Agreement or any

  
 - 11 - 

 
Ancillary Agreement, or the transactions contemplated hereby or thereby (including all actions taken in furtherance of the transactions contemplated hereby or thereby on or prior to the Closing
Date), between or among IC Group, on the one hand, and any member of the Kenon Group, on the other hand (collectively, “Agreement Disputes”). 

10.2. IC and Kenon will use their respective commercially reasonable efforts to resolve expeditiously any Agreement Dispute on a mutually
acceptable negotiated basis. In furtherance of the foregoing, any member of the Kenon Group or IC involved in an Agreement Dispute may deliver a notice (an “Escalation Notice”) demanding an in-person meeting involving senior level
management representatives of IC and Kenon (or, if IC and Kenon agree, of the appropriate business unit or division within each such entity). A copy of any such Escalation Notice shall be given to the General Counsel of each of IC and Kenon (which
copy shall state that it is an Escalation Notice pursuant to this Section 10.2). Any agenda, location or procedures for such discussions or negotiations between IC and Kenon may be established by IC and Kenon from time to time;
provided, however, that the representatives of IC and Kenon shall use their reasonable efforts to meet within 30 days of the Escalation Notice. 

10.3. If the senior level management representatives of IC and Kenon are not able to resolve the Agreement Dispute within 30 days after
the date of receipt of the Escalation Notice (or such shorter time as is necessary to avoid immediate irreparable injury), then the Agreement Dispute shall be submitted to the chief executive officers of both IC and Kenon. 

10.4. If IC and Kenon are not able to resolve the Agreement Dispute through the processes set forth in sections 10.2 and 10.3 within
60 days after the date of the Escalation Notice, such Agreement Dispute shall be determined, at the request of either IC or Kenon by arbitration, which shall be (i) conducted in Israel by three arbitrators, consisting of one arbitrator
appointed by IC, one arbitrator appointed by Kenon and a third arbitrator appointed by the two arbitrators appointed by IC and Kenon or, if the arbitrators appointed by IC and Kenon cannot agree on a third arbitrator, the third arbitrator shall be
appointed by the chief executive officers of both IC and Kenon, (ii) conducted in accordance with the Israeli Arbitration Law 1968 (except with respect to the selection of arbitrators) in effect at the time of filing of the demand for
arbitration, (iii) subject to Israeli law. 
 10.5. The decision of the arbitrators (which, notwithstanding any other provision of this
Agreement to the contrary, may include an order to specifically perform any provision of this Agreement) shall be in writing, fully reasoned, final and binding upon the Parties hereto, and the expense of the arbitration (including the award of
attorneys’ fees to the prevailing party) shall be paid as the arbitrators determine. The decision of the arbitrators shall be executory, and judgment thereon may be entered by any court of competent jurisdiction in the city of Tel-Aviv-Jaffa,
Israel. 
 10.6. Subject to applicable Laws, the existence of, and any discussions, negotiations, arbitrations or other proceedings relating
to, any Agreement Dispute shall be treated as confidential information, until such time as a judgment thereon is entered in a court of competent jurisdiction. 

10.7. Notwithstanding anything to the contrary in this Agreement, if an Agreement Dispute relates to a bona fide Third-Party Claim, the
Indemnitee may file an indemnification claim against Indemnitor in any competent court in any applicable jurisdiction. 

  
 - 12 - 

	11.	MISCELLANEOUS. 

 11.1. Expenses. Except as otherwise expressly set forth in this
Agreement or any Ancillary Agreement, or as otherwise agreed to in writing by the Parties, each party shall bear its own costs and expenses incurred on or prior to the Closing Date in connection with the preparation, execution, delivery and
implementation of the transactions contemplated hereby and thereby. 
 11.2. Notices. All notices, requests, claims, demands and
other communications hereunder shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by an internationally recognized overnight courier service, by facsimile or
e-mail or registered or certified mail (postage prepaid, return receipt requested) to the respective Parties hereto at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this
Section 11.2): 
  

	 	(a)	if to IC: 

 Israel Corporation Ltd. 

Millennium Tower 
 23 Arba’a
Street 
 P.O. Box 20456 
 Tel
Aviv 61204 Israel 
 Attention: Maya Alcheh-Kaplan 

General Counsel 
 Facsimile: 

with a copy to: 
 Yigal
Arnon & Co. 
 1 Azrieli Center 

Tel Aviv 6702101 
 Israel 

Attention: Gil Oren 
 Adrian
Daniels 
 Facsimile: 
  

	 	(b)	if to Kenon: 

 Kenon Holdings Ltd. 

1 Temasek Avenue #36-01 
 Millenia
Tower 
 Singapore 039192 

Attention: Robert Rosen 
 General
Counsel 
 E-mail: 
 with a copy
to: 
 Skadden, Arps, Slate, Meagher and Flom (UK) LLP 

40 Bank Street 
 London E14 5DS

 Attention: Scott V. Simpson 

James A. McDonald 

  
 - 13 - 

 Meitar Liquornik Geva Leshem Tal 

16 Abba Hillel Road 
 Ramat Gan
5250680 
 Israel 
 Attention:
Mike Rimon 
 Facsimile: 
 A Party may, by
notice to the other Party, change the address to which such notices are to be given. 
 11.3. Public Announcements. Prior to the
Closing Date, each of Kenon and IC shall consult with each other prior to issuing any press releases or otherwise making public statements with respect to the Separation, the Distribution or any of the other transactions contemplated hereby or under
any Ancillary Agreement and prior to making any filings with any Governmental Entity with respect thereto. 
 11.4. Severability. If
any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any Law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect for so long as the
economic or legal substance of the transactions contemplated by this Agreement is not affected in any manner materially adverse to either Party hereto. Upon such determination that any term or other provision is invalid, illegal or incapable of
being enforced, the Parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner in order that the transactions contemplated by this Agreement
are consummated as originally contemplated to the greatest extent possible. 
 11.5. Entire Agreement. This Agreement and the
Ancillary Agreements constitute the entire agreement of the Parties hereto and their Affiliates with respect to the subject matter hereof and thereof and supersede all prior agreements and undertakings, both written and oral, between the Parties
hereto with respect to the subject matter hereof and thereof. 
 11.6. Assignment. This Agreement may not be assigned by a Party
hereto without the consent of the other Party hereto; provided that a merger shall not be deemed to be an assignment under this Agreement; and provided further, that any Party may assign this Agreement or any of its rights and obligations hereunder
to one or more Affiliates of such Party without the consent of the other Party provided that no such assignment shall relieve the assignor of any of its obligations hereunder. 

11.7. Governing Law. This Agreement (and any claims or disputes arising out of or related hereto or thereto or to the transactions
contemplated hereby and thereby or to the inducement of any party to enter herein and therein, whether for breach of contract, tortious conduct or otherwise and whether predicated on common law, statute or otherwise) shall be governed by, and
construed in accordance with, the laws of the State of Israel irrespective of the choice of laws principles of the State of Israel, including all matters of validity, construction, effect, enforceability, performance and remedies. Subject to
Section 10 above, the appropriate courts in Tel-Aviv-Jaffa, Israel shall have exclusive jurisdiction over any dispute or claim in connection with this Agreement or any of the transactions contemplated hereby, and the Parties hereby irrevocably
submit to such jurisdiction. 

  
 - 14 - 

 11.8. Specific Performance. In the event of any actual or threatened default in, or breach
of, any of the terms, conditions and provisions of this Agreement or any Ancillary Agreement, the Party or Parties who are, or are to be, thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief in
respect of its or their rights under this Agreement or such Ancillary Agreement, in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative. The Parties agree that the remedies at
law for any breach or threatened breach, including monetary damages, are inadequate compensation for any loss and that any defense in any action for specific performance that a remedy at law would be adequate is waived. Any requirements for the
securing or posting of any bond with such remedy are waived by each of the Parties. 
 11.9. Mutual Drafting. This Agreement and the
Ancillary Agreements shall be deemed to be the joint work product of the Parties and any rule of construction that a document shall be interpreted or construed against a drafter of such document shall not be applicable. 

11.10. Counterparts. This Agreement and each Ancillary Agreement may be executed in one or more counterparts, all of which shall be
considered one and the same agreement, and shall become effective when one or more counterparts have been signed by each of the Parties and delivered to the other Party. 

[Remainder of page intentionally left blank] 

  
 - 15 - 

 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the date first written
above by their respective officers thereunto duly authorized. 
  

			
	Israel Corporation Ltd.
		
	By:	 	  

		 	Name:
		 	Title:
	
	Kenon Holdings Ltd.
		
	By:	 	  

		 	Name:
		 	Title:

  
 - 16 - 

 Appendix 1 

“Action” shall mean any demand, action, claim, suit, countersuit, arbitration, inquiry, subpoena, proceeding or investigation
by or before any Governmental Entity or any arbitration or mediation tribunal. 
 “Actual Knowledge” shall mean with
respect to IC, the actual knowledge of IC’s general counsel, chief financial officer or chief executive officer without any of the foregoing having conducted any general or specific inquiry as to the existence of any threatened Legal
Proceedings. 
 “Agent” shall mean the trust company or bank duly appointed by IC to act as distribution agent, transfer
agent and registrar for the Distribution Shares in connection with the Distribution. 
 “Ancillary Agreements” shall mean
all agreements (other than this Agreement) entered into by the Parties in connection with the Separation, the Distribution or the other transactions contemplated by this Agreement, and all documents, instruments and ancillary agreements hereunder
and thereunder. 
 “Assets” shall mean, with respect to any person, the assets, properties, claims and rights (including
goodwill) of such Person, wherever located (including in the possession of vendors or other third Persons or elsewhere), of every kind, character and description, whether real, personal or mixed, tangible, intangible or contingent, in each case
whether or not recorded or reflected or required to be recorded or reflected on the books and records or financial statements of such Person, including rights and benefits pursuant to any contract, license, permit, indenture, note, bond, mortgage,
agreement, concession, franchise, instrument, undertaking, commitment, understanding or other arrangement. 
 “Audit
Committee” shall mean the audit committee of the IC Board. 
 “Cash Dividend” shall mean approximately U.S.
$200,000,000, less any taxes required to be withheld by IC subject to applicable Law. 
 “Business Day” shall mean a day in
which regular trading occurs on the TASE. 
 “Business Information” means all books, records, files and documentation of IC
in any media prepared, used or held for use by any Person, related to the IC Transferred Businesses, including but not limited to, all business records, tangible data, electronic media, disks, files, customer lists, supplier lists, blueprints,
specifications, designs, drawings, operation or maintenance manuals, bids, personnel records, policy and instruction manuals and directories, invoices, credit records, sales, market and promotional literature of any kind, tax, financial and
accounting records and all other books and records relating to the IC Transferred Businesses. 
 “Cash Investment” shall
mean the cash subscription by IC for ordinary shares in the capital of Kenon in consideration for the Cash Investment Amount. 

“Cash Investment Amount” shall mean an amount equal to
US$            .1 

 

	1 	NTD - Amount to be completed prior to signing based on the actual amounts: (i) invested/lent to Qoros in connection with the release of guarantees; and (ii) ICs obligation to fund Primus Green Energy Inc., up
to $25,000,000 (subject to certain benchmarks set forth in its business plan. Should the Cash Investment Amount be less than zero, any reference to Cash Investment will be deleted and the Loan Agreement will be revised to provide that the amount
below zero shall be deemed drawn down under the Loan Agreement. In addition, Loan Agreement to be revised to provide that, without derogating from the obligation of Kenon to pay any stamp duty regarding the issuance of its shares (if any), should
any stamp duties be paid by IC following the payment of the Cash Investment Amount, such amounts shall be deemed drawn down under the Loan Agreement. 

  
 - 17 - 

 “Credit Line” shall mean a certain credit line to be provided to Zim pursuant to
the terms and condition of the IL Framework Credit Line Agreement dated July 15, 2014, in the amount of $50,000,000. 

“DTC” shall mean the Depositary Trust Company. 

“Employees” shall mean Tzahi Goshen and Barak Cohen. 

“Exchange Act” shall mean the U.S. Securities Exchange Act of 1934, as amended, together with the rules and regulations
promulgated thereunder. 
 “Form 20-F” shall mean the registration statement on Form 20-F filed by Kenon with the
SEC in connection with the Distribution, and all amendments and supplements thereto. 
 “Future Litigation” shall mean any
Legal Proceedings to which IC will become a party following the Closing relating to its holding prior to the Closing of the IC Transferred Companies or the IC Transferred Businesses with the exception of the Legal Proceedings set forth in Schedule
3.6. 
 “Guarantee Release Framework” shall mean the framework for releasing the guarantees provided to Chery Automotive
Co. Ltd. (“Chery”) under the Quantum Obligations, as more fully described in IC’s immediate report dated October 1, 2014, and which was effectuated on December 11, 2014 by the release of IC from a certain guarantee to
Chery, dated August 2014. 
 “General Meeting” shall mean the Extraordinary General Meeting of the IC Shareholders convened
for the purpose of approving the Separation and Distribution. 
 “Governmental Entity” shall mean any nation or government,
any state, municipality or other political subdivision thereof and any entity, body, agency, department, board, bureau or court, whether domestic, foreign or multinational, exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government and any executive official thereof. 
 “Group” shall mean the IC Group or the
Kenon Group, as the context may require. 
 “Guarantee” shall mean any guarantee, indemnification or contribution
obligation, surety bond or other credit support agreement, arrangement, commitment or understanding. 
 “IC Disclosure
Documents” shall mean any registration statement or other document filed with the SEC or the ISA by or on behalf of IC in connection with the Separation or the Distribution, in each case which describes the Separation or the Distribution or
the IC Group or primarily relates to the transactions contemplated hereby, but shall specifically not include the Kenon Disclosure Documents. 

“IC Group” shall mean IC and each Person that is a Subsidiary of IC, or an investee or associated company of such Subsidiary
or IC (other than (i) the IC Transferred Companies and (ii) Kenon and its Subsidiaries; (iii) Israel Chemicals Ltd., and (iv) Oil Refineries Ltd.). 

  
 - 18 - 

 “IC Shares” shall mean the ordinary shares of IC. 

“IC Shareholders” shall mean the holders of IC Shares. 

“IC Shareholder Circular” shall mean the circular sent to IC Shareholders containing details of the Separation and
Distribution, including any amendment or supplement thereto. 
 “IC Transferred Assets” shall mean the IC Transferred
Equity Interests and the Assets sets forth in Schedule A hereto. 
 “IC Transferred Businesses” shall mean the IC
Transferred Assets and the IC Transferred Liabilities. 
 “IC Transferred Companies” shall mean: 

(i) IC Power Ltd., a company incorporated with limited liability organized under the laws of the State of Israel (“ICP”);

 (ii) ZIM Integrated Shipping Services, Ltd., a company incorporated with limited liability organized under the laws of the State of
Israel (“Zim”); 
 (iii) Tower Semiconductor Ltd., a company incorporated with limited liability organized under the laws
of the State of Israel (“Tower”); 
 (iv) IC Green Energy Ltd., a company incorporated under the laws of Israel
(“ICG”); and 
 (v) Quantum (2007) LLC, a company incorporated with limited liability organized under the laws of the
State of Delaware (“Quantum”); 
 “IC Transferred Equity Interests” shall mean 

(a) 10,000,100 ordinary shares of ICP, par value NIS 0.01 owned by IC, constituting 100% of the issued and outstanding share capital of such
company as of the Closing Date; 
 (b) 3,200,000 ordinary shares of ZIM, par value NIS 0.03 owned by IC, constituting approximately 32% of
the issued and outstanding share capital of such company as of the Closing Date; 
 (c) 18,029,964 ordinary shares of Tower, par value NIS
15.00 owned by IC, constituting approximately 30% of the issued and outstanding share capital of such company as of the Closing Date, 1,669,870 series 9 options in Tower, options to purchase 2,668 ordinary shares of Tower, transferred to Tower
pursuant to that certain Letter Agreement between IC and Mr. Yoav Doppelt, dated February 6, 2013; 
 (d) 3,722 ordinary shares of
IC Green Energy Ltd., nominal value NIS 0.2 owned by IC, constituting 100% of the issued and outstanding share capital of such company as of the Closing Date; and 

(e) 100% of the membership interest of Quantum, owned by IC, constituting 100% of the of the membership interest of such company as of the
Closing Date. 
 “IC Transferred Liabilities” shall mean the Liabilities set forth in Schedule B. 

  
 - 19 - 

 “Information” shall mean all information, whether or not patentable or
copyrightable, in written, oral, electronic, visual or other tangible or intangible form, stored in any medium, including studies, reports, Records, instruments, surveys, discoveries, ideas, concepts, know-how, techniques, designs, specifications,
drawings, blueprints, diagrams, models, prototypes, samples, flow charts, data, computer data, disks, diskettes, tapes, computer programs or other Software, marketing plans, customer names, communications by or to attorneys (including
attorney-client privileged communications), memos and other materials prepared by attorneys or under their direction (including attorney work product), communications and materials otherwise related to or made or prepared in connection with or in
preparation for any legal proceeding, and other technical, financial, employee or business information or data.
 “Intellectual
Property” means all rights in any jurisdiction worldwide arising out of (i) all patents and patent applications, together with all reissuances, divisionals, continuations, continuations-in-part, revisions, renewals, extensions and
reexaminations thereof, (ii) all trade secret rights, formulas, discoveries and improvements, know how, inventions, specifications, designs, plans, proposals and technical data, business and marketing plans, market surveys, and customer lists,
(iii) all copyrights and any other original works of authorship, designs, rights in databases, mask works, copyright registrations and applications therefor and all moral and economic rights of authors and inventors related thereto, however
denominated, throughout the world, (iv) all trademarks, service marks, logos, trade dress and trade names, whether registered or not, all registrations and applications to register the foregoing anywhere in the world and all goodwill associated
therewith, (v) all Internet electronic addresses, domain names, uniform resource locators and alphanumeric designations associated therewith and all registrations for any of the foregoing and (vi) all other intellectual property and
related proprietary rights, interests and protections. 
 “ISA” shall mean the Israel Securities Authority

“Kenon” shall have the meaning set forth in the Preamble. 

“Kenon Articles of Association” shall mean the Articles of Association, in the form of Exhibit B. 

“Kenon Disclosure Documents” shall mean any registration statement or other document (including the Form 20-F) filed
with the SEC or the ISA by or on behalf of Kenon in connection with the Separation or the Distribution, in each case which describes the Separation or the Distribution or the Kenon Group or primarily relates to the transactions contemplated hereby,
but shall not include the IC Shareholder Circular or any other documents filed by IC with any of the SEC, the ISA or any other Governmental Entity in connection with the Separation or the Distribution. 

“Kenon Group” shall mean Kenon and each Person that immediately following the Closing, is a Subsidiary of Kenon, or an
investee or associated company of such Subsidiary or Kenon. 
 “Kenon Israeli Prospectus” shall mean the prospectus filed
with the ISA by Kenon with respect to the Distribution Shares. 
 “Kenon Shares” shall mean
                     ordinary shares in the capital of Kenon. 

“Law” shall mean any national, supranational, federal, state, provincial, local or similar law (including common law),
statute, code, order, ordinance, rule, regulation, 

  
 - 20 - 

 
treaty (including any income tax treaty), license, permit, authorization, approval, consent, decree, injunction, binding judicial or administrative interpretation or other requirement, in each
case, enacted, promulgated, issued or entered by a Governmental Entity. 
 “Legal Proceedings” shall mean any material
ongoing civil, criminal or administrative action or proceeding relating to the IC Transferred Businesses filed with or heard before a court of competent jurisdiction or any other competent judicial Governmental Entity or arbitrator. 

“Liabilities” shall mean any and all debts, liabilities, costs, expenses and obligations, whether accrued or fixed, absolute
or contingent, matured or unmatured, reserved or unreserved, or determined or determinable, including those arising under any Law, Action, whether asserted or unasserted, or order, writ, judgment, injunction, decree, stipulation, determination or
award entered by or with any Governmental Entity and those arising under any contract or any fines, damages or equitable relief which may be imposed and including all costs and expenses related thereto. 

“Lien” means any mortgage, deed or trust, pledge, hypothecation, security interest, encumbrance, restriction, claim, lien,
lease or charge or third party right of any kind whatsoever. 
 “Loan Agreement” shall mean that certain loan agreement by
and between IC and Kenon in the form agreed between the Parties prior to the date hereof. 
 “Losses” shall mean all
damages, losses, penalties, judgments, settlements, claims, payments, fines, interest, costs and expenses (including the reasonable costs and expenses of any and all Actions and demands, assessments, judgments, settlements and compromises relating
thereto and the reasonable costs and expenses of attorneys’, accountants’, consultants’ and other professionals’ fees and expenses incurred in the investigation or defense thereof or the enforcement of rights hereunder),
excluding special, consequential, indirect or punitive damages and taxes. 
 “NYSE” shall mean the New York Stock Exchange.

 “Parties” shall mean the parties to this Agreement. 

“Person” means any natural person, general or limited partnership, corporation, limited liability company, firm, association
or other legal entity. 
 “Pledge Agreement” shall mean that certain pledge agreement by and between IC and Kenonin the
form agreed between the Parties prior to the date hereof. 
 “Quantum Obligation” shall mean the guarantee to Chery dated
July 2012. 
 “Records” shall mean any contracts, documents, books, records or files. 

“Record Date” shall mean the close of business on the date to be determined by the IC Board as the record date for
determining holders of IC Shares entitled to receive Distribution Shares pursuant to the Distribution. 
 “Record Holders”
shall mean the holders of record of IC Shares as of the Record Date with the exception of H.L. Management and Consulting (1986) Ltd. 

“Representatives” shall mean, with respect to any Person, any of such Person’s directors, officers, employees, agents,
consultants, advisors, accountants, attorneys or other representatives. 
 “SEC” shall mean the United States Securities
and Exchange Commission or any successor agency. 

  
 - 21 - 

 “Subsidiary” shall mean, with respect to any Person, (i) a corporation,
50% or more of the voting or capital stock of which is, as of the time in question, directly or indirectly owned by such Person and (ii) any other partnership, joint venture, association, joint stock company, trust, unincorporated
organization or other entity in which such Person, directly or indirectly, owns 50% or more of the equity economic interest thereof or has the power to elect or direct the election of 50% or more of the members of the governing body of
such entity or otherwise has control over such entity (e.g., as the managing partner of a partnership). 
 “TASE”
shall mean the Tel Avi Stock Exchange. 
 “TASE Account” shall mean the account of the TASE Clearing House Ltd. 

“Zim” shall mean Zim Integrated Shipping Services Ltd. 

  
 - 22 - 

 SCHEDULE A 

IC TRANSFERRED ASSETS 
  

	 	•	 	Zim Restructuring Deed, dated July 16, 2014 (the “Restructuring Deed”) 

  

	 	•	 	Zim Subscription Agreement between Zim and IC, dated July 16, 2014 (the “Subscription Agreement”) 

  

	 	•	 	Those certain Capital Notes listed in Annex A, in the aggregate amount of NIS 480,098,031, issued by IC Green Energy Ltd. (“ICG”) 

 

	 	•	 	Those certain Loans to ICG listed in Annex A in the aggregate amount of EURO 17,690,488 plus interest thereon. 

  

	 	•	 	Those certain Capital Notes listed in Annex A in the aggregate amount of NIS 802,038,757, issued by Quantum (2007) LLC (“Quantum”). 

 

	 	•	 	Those certain Capital Notes listed in Annex A in the aggregate amount of US $362,498,968, issued by Quantum 

  

	 	•	 	Registration Rights Agreement by and between Tower, IC and certain parties thereto, dated September 28, 2006 

  

	 	•	 	Intellectual Property held by IC in respect of the IC Transferred Businesses 

  

	 	•	 	All Business Information 

  

	 	•	 	All causes of action, lawsuits, judgments, claims and demands of any nature available to or being pursued by IC which (i) are related to the IC Transferred Businesses, or (ii) constitute counterclaims, rights
of setoff, and affirmative defenses to any claims brought against IC by third parties which are related to the IC Transferred Businesses, to the extent such causes of action, lawsuits, judgments, claims or demands are needed Kenon to continue the
operation of the IC Transferred Businesses as currently conducted or defend against any claims or demands made against IC arising from the IC Transferred Businesses 

 

	 	•	 	All of the goodwill associated with the IC Transferred Businesses 

  

	 	•	 	Limited Liability Company Agreement of Quantum dated February 2007 

  

	 	•	 	Any and all rights to or arising from any of the foregoing 

  

	 	•	 	Loan to ICG in the amount of US$7 million granted on November 2014 

  

	 	•	 	The loans in the amount of US$             granted by IC to Qoros under the Guarantee Release Framework2.

  

	2 	NTD - To date, in the amount of approx. US$60 million. 

  
 - 23 - 

 SCHEDULE B 

IC TRANSFERRED LIABILITIES 

 

	 	•	 	Obligations set forth in a certain Tag Along Agreements between IC and Bank Leumi Le-Israel B.M. dated September 28, 2006, as amended on September 25, 2008 and between IC and Bank Hapoalim B.M. dated
September 28, 2006, as amended on September 25, 2008. 

  

	 	•	 	IC’s general undertaking dated February 16, 2007 regarding Quantum’s obligations pursuant to the Shareholders’ Agreement between Quantum and Wuhu Chery Automobile Investment
Co. Ltd.

 Without derogating from the foregoing, according to the Consent To An Assignment dated August 31, 2014, IC
shall continue to be liable under the JVC Guarantee to the performance and compliance of Quantum with art. 7.7 only of the JVC. To the extent that IC is required to perform any of its obligations under art. 7.7 of the JVC Guarantee, any Liability of
IC resulting therefrom shall be considered an IC Transferred Liability for which IC shall be entitled to indemnification pursuant to Section 6.4 herein as if Kenon has assumed IC’s obligations under art. 7.7 of the JVC, unless the exercise
of such right relates to the Legal Proceedings set forth in Schedule 3.6 and without derogating from any of IC’s representations and warranties hereunder; provided, however, that if IC is requested to perform its obligation under art.
7.7 of the JVC Guarantee, IC shall notify Kenon to that effect as soon as possible following receipt of such request and shall cooperate in good faith with Kenon, at Kenon’s expense, to minimize any such Liability that may arise thereunder.

  

	 	•	 	IC’s obligation to invest approximately $4,000,000 in Qoros in accordance with the business plan of Qoros. 

  

	 	•	 	The $25 million obligation to fund Primus Green Energy Inc. (subject to certain benchmarks set forth in its business plan attached hereto as Schedule D, less any amounts already paid thereunder prior to the
Closing). 

  

	 	•	 	The Guarantee Framework Obligations. 

  

	 	•	 	Consulting Agreement between IC and Volker, dated May 5, 2009 and the options granted to Volker under Exhibit A thereof. 

  
 - 24 - 

 SCHEDULE 3.4 

REQUIRED CONSENTS 

1. Declaration of Effectiveness of the Form 20-F by the SEC. 

2. Approval of New York Stock Exchange for the listing for trade of the Distribution Shares. 

3. Approval of ISA for publication of the Kenon Israeli Prospectus. 

4. Approval in principle of TASE for the listing for trade of the Distribution Shares. 

5. Approval of the General Meeting. 
 6. Consent of Nir Gilad
(in respect of the transfer of the IC Transferred Equity Interests in Quantum). 
 7. Approval of the Board of Directors of ICG (in respect of the transfer
of the IC Transferred Equity Interests in ICG). 
 8. Approval of the Board of Directors of ICP (in respect of the transfer of the IC Transferred Equity
Interests in ICP). 

  
 - 25 - 

 Annex A 

Capital Notes issued by Quantum to IC 
  

									
	 #
	  	Date	 	  	$	 
	 3
	  	 	9/21/2011	  	  	 	43,762,308	  
	 4
	  	 	3/6/2012	  	  	 	35,805,000	  
	 5
	  	 	4/30/2012	  	  	 	23,718,000	  
	 6
	  	 	3/12/2013	  	  	 	63,790,000	  
	 7
	  	 	7/17/2013	  	  	 	40,508,000	  
	 8
	  	 	12/5/2013	  	  	 	32,690,000	  
	 9
	  	 	1/9/2014	  	  	 	41,020,660	  
	 10
	  	 	6/5/2014	  	  	 	81,205,000	  
		  				  	  
	  
	 
		  				  	 	362,498,968	  

 Capital Notes issued by Quantum to IC

  

									
	 #
	  	Date	 	  	NIS	 
	 1
	  	 	12/28/2007	  	  	 	790,588,867	  
	 2
	  	 	1/10/2008	  	  	 	11,449,890	  
		  				  	  
	  
	 
		  				  	 	802,038,757	  

 Loans from IC to ICG 

 

									
	 #
	  	Date	 	  	Euro	 
		  	 	2/21/2012	  	  	 	3,785,700	  
		  	 	2/21/2012	  	  	 	9,464,250	  
		  	 	3/29/2012	  	  	 	1,502,279	  
		  	 	11/19/2012	  	  	 	2,741,278	  
		  	 	12/4/2012	  	  	 	196,982	  
		  				  	  
	  
	 
		  				  	 	17,690,489	  

 Capital Notes issued by ICG to IC

  

									
	 #
	  	Date	 	  	$	 
	 6
	  	 	31/01/08	  	  	 	29,187,672	  
	 7
	  	 	21/02/08	  	  	 	1,570,000	  
	 8
	  	 	12/03/08	  	  	 	800,000	  
	 9
	  	 	16/04/08	  	  	 	1,200,000	  
	 10
	  	 	14/05/08	  	  	 	2,300,000	  
	 11
	  	 	19/06/08	  	  	 	2,450,000	  
	 12
	  	 	17/07/08	  	  	 	4,300,000	  
	 13
	  	 	31/08/08	  	  	 	4,600,000	  
	 14
	  	 	30/09/08	  	  	 	170,702,224	  
	 15
	  	 	23/10/08	  	  	 	22,125,500	  
	 16
	  	 	01/12/08	  	  	 	12,898,179	  
	 17
	  	 	31/12/08	  	  	 	1,438,098	  
	 18
	  	 	01/05/09	  	  	 	870,538	  
	 19
	  	 	30/06/10	  	  	 	1,891,600	  
	 20
	  	 	01/09/09	  	  	 	5,863,920	  
	 21
	  	 	31/12/09	  	  	 	13,368,927	  
	 22
	  	 	20/01/10	  	  	 	9,724,852	  
	 23
	  	 	02/02/10	  	  	 	5,173,500	  
	 24
	  	 	22/02/10	  	  	 	18,434,880	  
	 25
	  	 	31/03/10	  	  	 	4,945,622	  
	 26
	  	 	22/06/10	  	  	 	4,708,900	  
	 27
	  	 	30/06/10	  	  	 	1,356,000	  
	 28
	  	 	07/07/10	  	  	 	2,944,080	  
	 29
	  	 	15/07/10	  	  	 	4,945,700	  
	 30
	  	 	10/08/10	  	  	 	1,064,000	  
	 31
	  	 	23/08/10	  	  	 	25,359,600	  
	 32
	  	 	30/09/10	  	  	 	1,230,884	  
	 33
	  	 	06/12/10	  	  	 	14,660,400	  
	 34
	  	 	31/12/10	  	  	 	2,121,959	  
	 35
	  	 	12/01/11	  	  	 	12,158,400	  
	 36
	  	 	31/03/11	  	  	 	2,516,000	  
	 37
	  	 	14/04/11	  	  	 	23,693,760	  
	 38
	  	 	30/06/11	  	  	 	3,983,000	  
	 39
	  	 	15/07/11	  	  	 	21,315,400	  
	 40
	  	 	30/09/11	  	  	 	2,038,000	  
	 41
	  	 	04/12/12	  	  	 	42,156,436	  
		  				  	  
	  
	 
		  				  	 	480,098,031	  

  
 - 26 - 

 SCHEDULE 3.5(A) 

LIMITATIONS AND RESTRICTIONS IN RELATION TO IC
TRANSFERRED ASSETS 
 Any restrictions pursuant to the following documents (including, where
applicable, English translation thereof), copies of which are attached hereto to the extent indicated below: 
  

	 	1.	Articles of Association of Zim attached hereto. 

  

	 	2.	Legal proceedings in connection with an application to approve a derivative action law suit, filed to the district court of Tel Aviv on August 5, 2014, in connection with Zim, as specified in Schedule 3.6 below.

  

	 	3.	State Approval of the Transfer of the shares of Zim. 

  

	 	4.	Restructuring Deed 

  

	 	5.	Subscription Agreement 

  

	 	6.	Articles of Association of Tower attached hereto 

  

	 	7.	Limited Liability Company Agreement of Quantum dated February 2007. 

  

	 	8.	Articles of Association of ICP attached hereto 

  

	 	9.	Memorandum of Association and Articles of Association of ICG attached hereto 

  

	 	10.	Tag Along Agreement between IC and Bank Leumi Le-Israel B.M. dated September 28, 2006, as amended on September 25, 2008. 

  

	 	11.	Tag Along Agreement and between IC and Bank Leumi Le-Israel B.M. dated September 28, 2006, as amended on September 25, 2008. 

 

	 	12.	Joint Venture Agreement between Quantum and Wuhu Chery Automobile Investment Co. Ltd., dated February 16, 2007, as amended as follows:. 

 

	 	1.	Amendment No. 1 - July 2008 

  

	 	2.	Amendment No. 2 - Dec 22, 2008 

  

	 	3.	Amendment No. 3 - Aug 28, 2009 

  

	 	4.	Amendment No. 4 - May 24, 2011 

  

	 	5.	Amendment No. 5 - Aug 23, 2011 

  

	 	6.	Amendment No. 6 - Nov 18, 2011 

  

	 	7.	Amendment No. 7 - Jan 5, 2012 

  

	 	8.	Amendment No. 8 - Jan 12, 2012 

  

	 	9.	Amendment No. 9 - August 27, 2012 

  

	 	10.	Amendment No. 9 (SIC) - Jan 10, 2013 

  

	 	11.	Amendment No. 10 – Jan 10, 2013 

  

	 	12.	Amendment No. 11 - April 7, 2013 

  

	 	13.	Amendment No.12 - April 8, 2013 

  

	 	14.	Amendment No. 13 - June 20, 2013 

  

	 	15.	Amendment No. 14 - Aug 1, 2013 

  
 - 27 - 

	 	16.	Amendment No. 15 - Oct 20, 2013 

  

	 	17.	Amendment No. 16 - Nov 18, 2013 

  

	 	18.	Amendment No. 17 - July 23, 2014 

  

	 	19.	Amendment No. 18 - Undated 2014 

  
 - 28 - 

 SCHEDULE 3.5(B) 

ADDITIONAL SECURITIES 
  

	1.	Options granted to Volker under the Consulting Agreement between IC and Volker, dated May 5, 2009. 

  

	2.	Option Agreement between ICG and Yom Tov Samia, dated April 8, 2012. 

  
 - 29 - 

 SCHEDULE 3.6 

LEGAL PROCEEDINGS 

Legal Proceedings in connection with VCars as described more fully in Footnote 20(b)1a to the financial statements of IC for the year ended
December 31, 2013. 
 Legal Proceedings in connection with an application to approve a derivative action law suit in connection with
the approval of the amendment of the conditions relating to the share of the state of Israel in Zim, as reported in an immediate report dated August 7, 2014. 

  
 - 30 -EX-4.2

 Exhibit 4.2 

LOAN AGREEMENT 
 This Loan
Agreement (this “Agreement”) is made and entered into as of the                  day of
                , 2015 by and between Israel Corporation Ltd. (“IC”) and Kenon Holdings Ltd. (“Kenon”). IC and Kenon shall each be
referred to as a “Party”, and collectively, the “Parties”. 
 WHEREAS, IC intends to consummate a
structural change of the holdings of its portfolio companies, under which its holdings in certain of its portfolio companies, including (subject to such changes or variations in the implementation of such structural change as may be executed) IC
Power Limited, Zim Integrated Shipping Services Limited, IC Green Energy Limited, Tower Semiconductor Limited and Quantum (2007) LLC, which holds 50% of the interests in Qoros Automotive Co Limited (“Qoros”), will be
transferred to Kenon, and IC will distribute, inter alia, the shares in Kenon to its then-current shareholders, whereupon, inter alia, Kenon shall cease to be a subsidiary of IC (the “Change of Holdings”); and 

WHEREAS, pursuant to Guarantee Contracts entered into between IC and Chery Automobile Co. Ltd. (“Chery”) dated
July 23 2012 and August 2014 (subject to Section 2.2.1 hereto) (the “Qoros Guarantees”), IC has provided certain guarantees to Chery in respect of up to 50% of the obligations guaranteed by Chery pursuant to (i) a
Guarantee Deed between Chery and China Construction Bank Co., LTD, Suzhou Branch as agent for a syndicate of Chinese banks and (ii) a counter-guarantee contract between Chery and Changshu Port Development and Construction Co. Ltd., in each case
of (i) and (ii) provided in respect of the indebtedness of Qoros under that Syndicated Renminbi/US Dollars Agreement for Fixed Assets Investment with an Aggregate Equivalent Amount of RMB Three Billion dated July 23 2012, between
Qoros and said syndicate of Chinese banks, (the “Qoros Loan Agreement”); and 
 WHEREAS, Kenon has requested IC to
make available to it, subject to and concurrently with the consummation of the Change of Holdings, one or more loans, and IC is willing to provide such loans to Kenon, subject to and in accordance with the terms and conditions set forth in this
Agreement; 
 NOW, THEREFORE, the Parties hereby agree as follows: 

 

	1.	Interpretation; Definitions 

  

	 	1.1.	The preamble to this Agreement forms an integral and a binding part of this Agreement. 

  

	 	1.2.	In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement (including the preamble and any schedules, exhibits or appendices hereto) the following terms shall have the meanings
given to them in this Section: 

  

	 	1.2.1.	“Availability Period” means the period commencing on the Effective Date and ending on the fifth anniversary thereof, or if earlier, the Loans Repayment Date, and with respect to any unutilized amount of
the Loan Facility cancelled in accordance with this Agreement, the date that such cancellation becomes effective; 

	 	1.2.2.	“Business Day” means a day on which commercial banks are open for general business in Israel and Singapore, except in relation to any date for the transfer, payment or purchase of USD, a day (other than
a Saturday or Sunday) which is also a day on which commercial banks are open for general business, including FX dealings and effecting delivery of USD, in accordance with the market practice on the London interbank market; 

 

	 	1.2.3.	“Commitment Fee” means a fee calculated at a rate equal to 2.1% per annum of any unutilized amount of the Loan Facility, accrued and payable in accordance with this Agreement; 

 

	 	1.2.4.	“Default” means an Event of Default or any event or circumstance specified in Section 8 (Events of Default) which would (with the expiry of a grace period, the giving of notice, the making of any
determination or any combination of any of the foregoing) be an Event of Default; 

  

	 	1.2.5.	“Distributions” shall mean any dividends or other similar payment (in cash or in-kind) on, or in respect of, any share capital, or any repayment, prepayment or payment (in cash or in-kind) of the
principal of, or interest (whether or not capitalized) or any other amount on, or in respect of any shareholders loans (including by way of set-off); 

  

	 	1.2.6.	“Dollars”, “USD” and “US$” mean the lawful currency of the United States of America; 

 

	 	1.2.7.	“Effective Date” means the date of the closing of the Change of Holdings as shall be designated by IC and specified in its public filings to the stock exchange; 

 

	 	1.2.8.	“Final Repayment Date” means the date falling 10 (ten) years from the Effective Date (or if such day is not a Business Day, the next following Business Day); 

 

	 	1.2.9.	 “Financial Indebtedness” means, at any time, Kenon’s indebtedness in respect of or pursuant to: (a) moneys borrowed or
raised in any other way having the commercial effect of borrowing or receiving other financing, credit facilities (only those utilized), including principal, interest and any and all fees and other amounts owing in respect thereof; (b) moneys
raised by the sale of receivables, invoices, bills or notes or other financial assets provided that recourse may be had to the vendor in the event of non-payment of such receivables, invoices, bills or financial assets when due; (c) the net sum
of the termination values of derivative transactions entered into in connection with protection against or benefit from fluctuation in any rate or price payable (taking into account only the marked to market value); and (d) the amount of any
liability in respect of any guarantee, indemnity or other instrument to assure payment of, or against loss in respect of non-payment of, any indebtedness referred to in (a), (b) and (c) above (without double counting). The foregoing shall
be calculated by reference to the data appearing in the most recent unconsolidated financial statements of Kenon, including, for the avoidance of doubt, any amount owing under this Agreement (including, for the avoidance of doubt, (A) the Loan
Facility, the outstanding Loans, interest related thereto (including interest at the Default Rate, if any), any Commitment Fee Cancellation Accrual Amount outstanding and 

  
 2 

	 	
outstanding Commitment Fees and (B) the aggregate liability amount for which IC would be liable under the Qoros Guarantees (including, without limitation, amounts in respect of loans,
interest and any fees and expenses) and including the outstanding aggregate Qoros Guarantee Liability Amount (without double counting), provided that, for the purposes hereof, any amount of the Qoros Guarantee Liability Amount
outstanding at that time shall be calculated at 100% and any amount of the liability under the Qoros Guarantees outstanding at that time for which no IC Guarantee Demand has been issued in accordance with this Agreement shall be calculated at 50%,
in each case less any amounts repaid or prepaid in accordance with this Agreement, any unutilized amount of the Loan Facility cancelled in accordance with this Agreement and any amount of the Qoros Guarantees that IC has confirmed to Kenon in
writing has been either irrevocably cancelled or recovered, as the case may be). 

  

	 	1.2.10.	“Holdings Value” means, on any day, the product of (i) the average official closing price of a share of IC Power on the New York Stock Exchange (or, if such shares cease to be listed thereon, on
the relevant exchange on which they are listed) (expressed in US$) during the 5 (five) most recent exchange business days prior to the relevant date, multiplied by (ii) the total number of shares of IC Power held by Kenon. 

 

	 	1.2.11.	“IC Power” means IC Power Ltd., a company organized under the laws of the State of Israel, with company registration number 51-437498-2; 

 

	 	1.2.12.	“ICP Interests” means (i) shares of IC Power and any other securities or rights convertible into, exercisable for or otherwise conferring the right to acquire, shares of IC Power, in each case on a
fully diluted basis, and (ii) any other means of control (within the meaning of that term under the Israeli Securities Law, 1968) in IC Power, either directly or indirectly, by virtue of the holding of any security, by agreement or otherwise.

  

	 	1.2.13.	“Interest Capitalization Period” means a period commencing on the Effective Date and ending on the fifth anniversary of the Effective Date (or if such day is not a Business Day, the next following
Business Day); 

  

	 	1.2.14.	“Interest Period” means (i) the period from the date of which a Loan is provided by IC or a Qoros Guarantee Liability Amount is demanded by IC pursuant to Section 2.2, as applicable, to (and
excluding) the next following anniversary of the Effective Date (or if such day is not a Business Day, the next following Business Day), (ii) each successive period of 12 months thereafter (each such period ending on a date which is an
anniversary of the Effective Date, or if such day is not a Business Day, the next following Business Day), provided that the last such period shall end on the Final Repayment Date; 

 

	 	1.2.15.	“Interest Rate” means a rate equal to LIBOR plus 6% per annum (calculated in accordance with actual/360); 

  

	 	1.2.16.	“IPO” means, in respect of IC Power, an initial public offering of its shares or equity securities convertible into shares, or the listing thereof for trading, as the case may be, on any recognized
exchange in any jurisdiction; 

  
 3 

	 	1.2.17.	“LIBOR” means the London interbank offered rate administered by the ICE Benchmark Administration Limited (or any other person which takes over the administration of that rate) for USD and for a period
equal to the Interest Period for that Loan or the Qoros Guarantee Liability Amount (as applicable) as of the date which falls two (2) business days on the relevant interbank market prior to the commencement date of each Interest Period, as
displayed on the relevant pages of any internationally recognized information service which publishes that rate from time to time (such as Reuters or Bloomberg) reasonably selected by IC, or if no rate is available on such information service, a
rate quoted to IC at its request by a bank operating in the London interbank market. The Interest Rate so determined will apply for the period from the commencement of the relevant Interest Period until its expiration. 

 

	 	1.2.18.	“Loan Facility Cap Amount” means an amount equal to (i) US$200,000,000 (two hundred million US Dollars), provided that for the purpose of determining the Loan Facility Cap Amount any
amounts capitalized to or accrued on any Loan pursuant to this Agreement shall be disregarded; 

  

	 	1.2.19.	“Loans Repayment Date” means the date falling on the last day of the Interest Capitalization Period, as such date may be extended in accordance with Section 4.1 (and if such day is not a Business Day,
the next following Business Day), provided that, notwithstanding anything to the contrary in this Agreement (including the provisions of Section 4.1), if an IPO is consummated at any time prior to the date which is then designated as
the Loans Repayment Date, then the Loans Repayment Date shall automatically be extended or shortened, as applicable, to the date which is the earlier of (i) the date falling 18 months after the closing date of the IPO, and (ii) the Final
Repayment Date. 

  

	 	1.2.20.	“Net Debt” shall mean, at any time, the aggregate amount of all obligations of Kenon for or in respect of Financial Indebtedness at that time, less cash, cash equivalents and short-term
deposits of Kenon, all as appearing in the most recent unconsolidated financial statements of Kenon. 

  

	 	1.3.	The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 

 

	 	1.4.	All references in this Agreement to Sections and annexes or schedules shall, unless otherwise provided, refer to Sections hereof and to annexes or schedules attached hereto. The words “hereof”,
“herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. 

 

	 	1.5.	Unless the context otherwise requires, references to (or to any specified provision of) this Agreement or any other document shall be construed as references to that provision or that document as in force for the time
being and as amended, supplemented, modified or replaced in accordance with the terms thereof. 

  

	 	1.6.	References to a law or to a specific section thereof shall be construed as a reference to such law, including any rules or regulations promulgated thereunder, or section, as the same may have been, or may from time to
time be, amended, succeeded or re-enacted. 

  

	 	1.7.	The obligations of IC under this Agreement shall be effective as of the Effective Date. 

  
 4 

	2.	The Loan Facility and Qoros Guarantee Indemnity 

  

	 	2.1.	The Loan Facility. 

  

	 	2.1.1.	In reliance of the representations and undertakings of Kenon hereunder and subject to the terms and conditions of this Agreement, IC makes available to Kenon a USD facility in an aggregate amount not to exceed the Loan
Facility Cap Amount (the “Loan Facility”). 

  

	 	2.1.2.	Subject to the terms and conditions of this Agreement (including the conditions set out in Section 2.1.3), Kenon may, from time to time during the Availability Period, request to drawdown one or more loan(s) (each, a
“Loan”) under the Loan Facility, by submitting to IC, not less than 10 (ten) Business Days (or such shorter period as IC may in its absolute discretion agree) before any Loan is requested to be made, a notice substantially in the
form attached hereto as Schedule 1 (the “Drawdown Notice”). 

  

	 	2.1.3.	Kenon may submit a Drawdown Notice, which will not be regarded as having been duly completed unless all of the following conditions are satisfied - 

 

	 	(a)	the date specified in the Drawdown Notice for the drawdown of the Loan falls within the Availability Period; and 

  

	 	(b)	Kenon has created the relevant pledges in accordance with Section 7.3.1, and has delivered duly executed security documents in accordance with Section 7.3.1 in form and substance agreed between the Parties and
satisfactory to IC together with evidence agreed between the Parties and satisfactory to IC that each pledge granted pursuant hereto (or any amendment thereto, as applicable) has been duly filed for registration with the applicable public registry
in all relevant jurisdictions. 

  

	 	2.1.4.	Subject to the terms and conditions of this Agreement, IC shall provide the Loan requested by Kenon in a Drawdown Notice in accordance with this Agreement, by bank transfer to Kenon’s bank account in accordance
with transfer instructions to be specified in the Drawdown Notice. 

  

	 	2.1.5.	Kenon may apply all amounts borrowed by it under the Loan Facility towards its general corporate purposes or any other purpose approved by its directors. IC shall not be bound or responsible to monitor or verify the
application of any amount borrowed pursuant to this Agreement. 

  

	 	2.1.6.	Kenon may request to cancel any unutilized amount of the Loan Facility by submitting a written notice to IC, not less than 5 (five) Business Days (or such shorter period as IC may in its absolute discretion agree)
before such cancellation is requested to be made, specifying the requested cancellation date of the Loan Facility and the unutilized amount of the Loan Facility to be cancelled, and as of such date all rights and obligations of the Parties under
this Agreement with respect to such unutilized amount of the Loan Facility. 

  
 5 

	 	2.2.	The Qoros Guarantee Indemnity. 

  

	 	2.2.1.	IC agrees not to amend the terms of any Qoros Guarantee which would extend the duration thereof or increase the amounts for which IC may be liable under any Qoros Guarantee, without the prior written consent of Kenon.

  

	 	2.2.2.	Without derogating from the provisions of Section 2.2.1 above, Kenon shall notify IC, promptly upon becoming aware, and otherwise at the request of IC, of any restructuring, material change or amendment to the Qoros
Loan Agreement or any agreement entered into by any guarantor, credit support provider and/or by Quantum (2007) LLC in connection thereof. 

  

	 	2.2.3.	Kenon agrees and undertakes to indemnify and reimburse IC in full for any and all amounts actually paid by IC in connection with any Qoros Guarantee for any reason whatsoever together with any reasonable out-of-pocket
cost or expense (including reasonable legal fees) paid or incurred by IC in that respect, including in responding to, evaluating, negotiating or complying with any demand or requirement in respect of any of the Qoros Guarantees (the “Qoros
Guarantee Liability Amount”). 

  

	 	2.2.4.	IC shall notify Kenon in writing as soon as reasonably practicable after receiving any demand to pay any amount pursuant to any Qoros Guarantee specifying the amount demanded together with copy of the demand, and to the
extent reasonably practicable to do so shall liaise with Kenon prior to making any payment in respect of such demand, provided however that nothing herein shall limit IC nor hinder or interfere with the performance of its obligations
under law or any contract as it may determine in its sole discretion. 

  

	 	2.2.5.	Kenon shall pay any amount under the Qoros Guarantee Liability Amount following receipt of a written demand from IC (an “IC Guarantee Demand”) as follows: (i) if such IC Guarantee Demand is issued
prior to the Final Repayment Date, no later than the Final Repayment Date (including interest accrued thereon in accordance with this Agreement), and in case that prior to the delivery of such IC Guarantee Demand IC has declared that any or all of
the Loans and the Qoros Guarantee Liability Amount then outstanding under the Agreement be immediately due and payable prior to their specified maturity, within 14 Business Days of receipt of such IC Guarantee Demand; and (ii) if such IC
Guarantee Demand is issued on or after the Final Repayment Date (and without prejudice to the repayment obligation of Kenon in accordance with the provisions of Section 4.2), within 14 Business Days of receipt of such IC Guarantee Demand. For the
avoidance of doubt, however without prejudice to the indemnity undertakings of Kenon hereunder and without imposing on IC any duty or obligation to mitigate or eliminate the effect of any circumstances resulting in an amount becoming payable by it
or to take any action to recover any amount, any amount actually recovered by IC from any third party (including Qoros or Chery) in respect of amounts paid by it in connection with the Qoros Guarantees shall be reduced from the Qoros Guarantee
Liability Amount (that is, there shall be no double recovery). 

  
 6 

	 	2.2.6.	The indemnity undertakings of Kenon hereunder shall continue in full force and effect and be binding upon Kenon (and its successors, including liquidators, judicial managers, administrators and trustees) until the
expiration of the Qoros Guarantees and the final and irrevocable discharge and/or termination of any and all obligations and liabilities of IC or that IC may incur in connection with the Qoros Guarantees (the “Qoros Guarantee Liability
Termination”). For avoidance of doubt, the indemnity undertakings shall not be considered satisfied by any intermediate payment or recovery of all or any amount under this Agreement or any settlement of account in respect thereof, and shall
not be prejudiced and the liability of Kenon shall not be affected, as a consequence of an acceleration or declaration by IC of any amount due and payable prior to its specified maturity, by the pursuit or of any right or remedy available to IC or
by any invalidity, incapacity or defect in any collateral, security or other credit support or with respect to any indebtedness/liability whatsoever of any person or in any other document signed or to be signed by any person for or in connection
with any amount underlying the Qoros Guarantee Liability Amount or any part thereof. 

  

	 	2.2.7.	For the avoidance of doubt, the indemnity undertakings of Kenon hereunder shall be without prejudice to any right or remedy that IC may have against Kenon (including in connection with any breach or default (howsoever
defined) under this Agreement or under any other agreement) or against any other person, including Qoros or Chery (subject to the provisions of Section 2.2.8 below), any other agreement or under applicable law, provided that in no
event shall the availability of any other right or remedy of IC against any person affect the obligations of Kenon under this Agreement. 

  

	 	2.2.8.	Without prejudice to the foregoing, if reasonably practicable to do so and to the extent permitted by law or any relevant agreement, and subject to receipt of the consent of third parties required under such agreements,
if needed, IC shall assign to Kenon, and Kenon undertakes to assume (at Kenon’s sole expense), any and all rights (if any) of IC against Chery and Qoros in connection with the amounts to be indemnified for pursuant hereto in respect of the
Qoros Guarantee Liability Amount, and the parties shall use commercially reasonable efforts (at Kenon’s sole expense) to execute, upon written request of Kenon, any instrument reasonably necessary to evidence such assignment. Kenon undertakes
to use commercially reasonable efforts to preserve and enforce all of the rights available to it, including those assigned to it pursuant hereto, to recover any amounts paid by IC in connection with the Qoros Guarantees. Kenon further undertakes to
apply, in priority to any other amount (other than payments mandatorily preferred in accordance with applicable law) any amounts actually recovered by it from Qoros, Chery or any third party through the pursuit or enforcement of rights available to
it under law or contract, including those assigned to it by IC pursuant hereto, to pay off amounts owing to IC pursuant to the indemnity hereunder in accordance with the provisions of this Agreement. 

  
 7 

 In the event that IC shall determine that it is impossible or inadvisable to assign any rights
it may have against Qoros or Chery in accordance with this Section 2.2.8, IC shall notify Kenon of such determination and the Parties shall consult with one another and cooperate (at Kenon’s sole expense) with regard to the pursuit and
enforcement of the rights available to IC to recover any amounts paid by IC in connection with the Qoros Guarantees. If, following such consultation between the Parties, Kenon shall notify IC that it wishes to pursue the enforcement of any such
rights, IC may (without any obligation) issue Kenon a revocable power of attorney authorizing and empowering Kenon to take action, at its sole expense, in this respect. In the event Kenon notifies IC that it does not wish to enforce such rights (or
in the event that Kenon has failed to so notify IC and IC has given Kenon a ten (10) Business Days’ notice (or such shorter notice, if IC believes that further delay may materially prejudice the pursuit and enforcement of its rights and/or
its ability to recover any amounts paid in connection with the Qoros Guarantees), IC shall be entitled (but not obligated) to do so, at Kenon’s expense. Nothing herein shall limit IC’s right to join as a party to any legal proceedings,
including without limitation where it believes that there may be a conflict of interests that may impair or adversely affect its rights or interests. Any amount actually recovered by IC from Qoros, Chery or any third party through the pursuit or
enforcement of rights available to it under law or contract shall be reduced from the Qoros Guarantee Liability Amount (that is, there shall be no double recovery). 
  

	 	2.2.9.	In no circumstances whatsoever shall IC be liable to Kenon for any action taken or not taken by it in connection with the Qoros Guarantees, or for any delay or partial performance thereof other than with respect to
willful malicious acts or omissions of IC or anyone on its behalf. Kenon may not take any proceedings against IC, any of its directors, officers, employees or anyone acting on its behalf in respect of any act or omission of any kind by any of them
in connection with the Qoros Guarantees, other than with respect to willful malicious acts or omissions. The directors, officers, employees and anyone acting on behalf of IC may rely on this Section and enforce its terms. 

 

	3.	Interest, Fees and Other Payments 

  

	 	3.1.	Commitment Fee. 

  

	 	3.1.1.	On each day a Loan is made to Kenon under the Loan Facility in accordance with this Agreement, an amount equal to the Commitment Fee accrued in respect of the amount of that Loan (but for the avoidance of doubt, not any
other unutilized portion of the Loan Facility, if any), shall be calculated for the period from the Effective Date to the drawdown date of that Loan in accordance with this Agreement, and be capitalized to that Loan on the drawdown date of that
Loan, and shall thereafter be deemed to be a Loan for all intents and purposes hereunder. 

  
 8 

	 	3.1.2.	In the event that any portion of the Loan Facility is cancelled in accordance with this Agreement, an amount equal to the Commitment Fee accrued in respect of the unutilized portion of the Loan Facility so cancelled
shall be calculated for the period from the Effective Date to the date of cancellation of such portion of the Loan Facility in accordance with this Agreement (such amount, a “Commitment Fee Cancellation Accrual Amount”). On the last
day of the Interest Capitalization Period, the Commitment Fee in respect of any unutilized amount of the Loan Facility then remaining shall be calculated for the period from the Effective Date to (and including) that date, and shall constitute a
Commitment Fee Cancellation Accrual Amount. For avoidance of doubt, each Commitment Fee Cancellation Accrual Amount shall be deemed to be a Loan for all intents and purposes hereunder (including, without limitation, that it shall become due and
payable on the Loans Repayment Date). 

 Each Commitment Fee Cancellation Accrual Amount shall accrue interest at the Interest
Rate, calculated daily (in accordance with actual/360) from the date of cancellation of such portion of the Loan Facility to (and including) the last day of each Interest Period during the Interest Capitalization Period, and such interest shall be
capitalized to that Commitment Fee Cancellation Accrual Amount on the last day of each such Interest Period (other than the last date of the Interest Capitalization Period if such day is the Loans Repayment Date). 

 

	 	3.2.	Interest. 

  

	 	3.2.1.	The outstanding amount of each Loan and the outstanding amount of the Qoros Guarantee Liability Amount outstanding (including, in each case, interest amounts previously capitalized thereto in accordance with this
Agreement), shall bear interest at the Interest Rate, which shall be calculated in accordance with Section 3.2.2 below with respect to each Interest Period from the date of which each such Loan is provided by IC or that such amount under the Qoros
Guarantee Liability Amount is demanded by IC pursuant to Section 2.2, as applicable, and until the date of the final repayment of that Loan or the Qoros Guarantee Liability Amount, as applicable, provided that it shall not extend
beyond the Final Repayment Date. 

  

	 	3.2.2.	Interest as aforesaid in Section 3.2.1 above shall be calculated at the Interest Rate and accrue daily (in accordance with actual/360) from the date of which each such Loan is provided by IC or that amount under the
Qoros Guarantee Liability Amount is demanded by IC pursuant to Section 2.2, as applicable, to (and including) the last day of each Interest Period during the Interest Capitalization Period, and capitalized to the relevant Loan or the Qoros Guarantee
Liability Amount, as applicable, on the last day of each such Interest Period (other than the last date of the Interest Capitalization Period if such day is the Loans Repayment Date). 

  
 9 

	 	3.2.3.	Interest on any Loan and the Qoros Guarantee Liability Amount outstanding, as applicable (including, in each case, interest amounts capitalized thereto in accordance with this Agreement), shall be calculated at the
Interest Rate, shall accrue daily (in accordance with actual/360) during each Interest Period following the Interest Capitalization Period, and shall be payable on the last day of each such Interest Period (and in any event on the Loans Repayment
Date). 

  

	 	3.3.	Default interest. In the event that Kenon fails to pay any amount owing by it hereunder on the due date therefor (subject to any applicable grace or cure periods set forth in this Agreement), and IC has declared
any amounts accrued or outstanding under the Agreement immediately due and payable, additional interest shall accrue on the overdue amount from the due date up to the date of actual payment (both before and after judgment) at a rate of 3% per
annum (the “Default Rate”). Any interest accruing at the Default Rate under this Section shall be immediately payable by Kenon upon demand by IC. 

 

	 	3.4.	Costs and expenses. Kenon shall pay to IC on demand all costs and expenses reasonably incurred by IC, including reasonable fees and expenses of IC’s legal advisors, in connection with any default or the
enforcement of, or preservation of rights under this Agreement (including with respect to the contemplation of any enforcement and preparation therefor, and the creation, perfection and preservation of any pledge granted pursuant hereto).

  

	4.	Repayment and Prepayment 

  

	 	4.1.	Extension of the Loans Repayment Date. Kenon shall have the right to notify IC, on or prior to the date which is one month prior to the then designated Loans Repayment Date (an “Extension Notice
Date”), and provided that an IPO has not been consummated on or prior to that Extension Notice Date, that the Loans Repayment Date be extended to the date which is the earlier of (i) the date falling no later than 2 years
after the date which is then designated as the Loans Repayment Date, and (ii) the Final Repayment Date. 

  

	 	4.2.	Repayment. Subject to Section 4.3, Kenon shall (i) on the Loans Repayment Date, repay to IC an amount equal to one hundred percent (100%) of the then-outstanding Loans and any Commitment Fee
Cancellation Accrual Amounts and (ii) on the Final Repayment Date, pay to IC an amount equal to one hundred percent (100%) of the Qoros Guarantee Liability Amount then outstanding, in each case including interest amounts capitalized in
accordance with this Agreement, together with any accrued interest and all other amounts owing hereunder which then remain unpaid. 

  

	 	4.3.	Prepayment. Kenon shall have the option to prepay to IC all or any part of the then outstanding Loans, Qoros Guarantee Liability Amount and Commitment Fee Cancellation Accrual Amounts without being required to
pay any make-whole or similar payments. Kenon shall deliver a notice to IC of its election to make such prepayment at least three (3) Business Days prior to the proposed prepayment date (which notice shall specify the prepayment amount and the
proposed date for prepayment which must be a Business Day). Kenon shall pay the prepayment amount specified in its notice on the proposed date for prepayment. 

  

	 	4.4.	No Reborrowing. Kenon shall not be entitled to reborrow under this Agreement any part of any Loan which is repaid or prepaid hereunder. 

  
 10 

	5.	Payment Mechanics 

  

	 	5.1.	Payments. All payments to be made by Kenon to IC shall be made in Dollar by bank transfer to an account designated by IC (if Kenon has not received instructions regarding details of such account at least 5
Business Days prior to the relevant payment date, it shall notify IC thereof and request such instructions). 

  

	 	5.2.	No Set-Off. All payments to be made by Kenon to IC under this Agreement shall be calculated and made without (and free and clear of any deduction for) set-off or counterclaim. 

 

	 	5.3.	Taxes. 

  

	 	5.3.1.	If a deduction or withholding for or on account of tax (other than Israeli income tax of IC) from a payment under this Agreement is required by law to be made by Kenon (“Tax Deduction”), then the amount
of the payment due from Kenon shall be increased to an amount which (following such Tax Deduction) leaves an amount equal to the payment which would have been due if no such Tax Deduction had been required. 

 

	 	5.3.2.	Kenon shall make, in consultation with IC, any such Tax Deduction and any payment required in connection therewith, within the time allowed and in the minimum amount required by law, and shall deliver to IC, as soon as
reasonably practicable thereafter, evidence reasonably satisfactory to IC that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority. 

 

	 	5.3.3.	Without derogating from the foregoing, IC and Kenon shall cooperate in good faith in completing any procedural formalities necessary for Kenon to apply (at Kenon’s cost) for authorization to make that payment
without a (or with a reduced) Tax Deduction under the Singapore-Israel Treaty for the Avoidance of Double Taxation (the “Treaty”). Such cooperation shall only extend to assisting Kenon, on a best efforts basis, with any
documentation reasonably required in order to qualify for the Treaty (including a Certificate of Residence from the Israeli tax authorities) and otherwise assist in any procedures reasonably required for Kenon in claiming the benefits under the
Treaty and to obtain authorization to make any payment with no (or with a reduced) Tax Deduction. Kenon shall timely transfer the withheld taxes to the Singapore tax authorities, and as soon as practicable thereafter shall deliver to IC all relevant
documents and information in connection therewith. 

  

	 	5.3.4.	If any payment is increased in accordance with Section 5.3.1, and IC actually receives a tax refund which is attributable to a Tax Deduction borne by Kenon under this Agreement, IC shall reimburse Kenon, within 30 days
or receipt of such tax refund, an amount equal to the lower of (i) the amount by which any payment is increased in connection with said Tax Deduction in accordance with Section 5.3.1 and (ii) the amount of the tax refund actually received
by IC. IC shall promptly notify Kenon of any tax refund obtained (if obtained) in Israel for such Tax Deduction. IC shall not be required to disclose any information relating to the administration of its tax affairs. 

  
 11 

	 	5.4.	VAT. Unless expressly stated otherwise, all amounts payable by Kenon specified in this Agreement do not include value added tax or goods and services tax, to the extent applicable under applicable law of any
jurisdiction. Kenon shall pay to IC all value added tax, if any, payable in respect of any payment to be made by Kenon under the Loan Agreement and shall bear any goods and services tax, if any, payable on any supply made by IC to Kenon under this
Agreement. 

  

	 	5.5.	Application of Payments. If IC and/or any receiver, administrator, administrative receiver, judicial manager, trustee or other similar officer, receives a payment that is insufficient to discharge all the amounts
then owed or due and payable by Kenon under this Agreement, such amount shall be applied towards the obligations of Kenon under this Agreement in the following order or in such other order as IC may deem fit (notwithstanding any appropriation made
(if made) by Kenon): 

  

	 	5.5.1.	first, in or towards payment of all expenses with respect to the collection of any amount, including any unpaid fees of any receiver, judicial manager, administrator, trustee or other similar officer, in the
amount determined by IC pursuant to this Agreement or by the relevant court, execution office or any other relevant authority; 

  

	 	5.5.2.	second, in or towards payment of any unpaid costs and expenses of IC under this Agreement; 

  

	 	5.5.3.	third, in or towards payment of any other amount owing under this Agreement to IC but unpaid, other than principal of the Loans and the Qoros Guarantee Liability Amount, in such order as IC deems fit; and

  

	 	5.5.4.	fourth, in or towards payment to IC on account of the principal of the Loans and the Qoros Guarantee Liability Amount. 

Kenon acknowledges and agrees that any payment received by any of the foregoing (including following the enforcement or realization of any
pledge and security interest created or granted to IC by Kenon in accordance with this Agreement) at a time when all amounts owing or that may become due and payable under this Agreement have not yet become due and payable, including in respect of
any obligations, claims, charges and other liabilities of IC or that IC may incur in connection with the Qoros Guarantees, may be deposited by IC (or anyone acting on its behalf) in a weekly interest bearing cash deposit in a bank account at
IC’s name, and shall thereafter be applied towards the payment of any such amounts owing or that may become due and payable under this Agreement, including amounts actually paid by IC in connection with any Qoros Guarantee, in accordance with
this Section 5.5. Following the full payment of all amounts due to IC under this agreement and following the Qoros Guarantee Liability Termination, the balance remaining in the aforementioned bank account (including all interest and proceeds accrued
thereon) shall be paid to Kenon. 
  

	6.	Representations and warranties of Kenon 

 Kenon represents and warrants to IC
(which representations will be deemed to be repeated on each day), in each case from the date of this Agreement and until all amounts owed or payable under this Agreement have been irrevocably paid in full and until the Qoros Guarantee Liability
Termination, as follows and acknowledges that IC is entering into this Agreement in full reliance thereof: 
  

	 	6.1.	Status. It is a company, duly incorporated and validly existing under the law of its jurisdiction of incorporation, and has the power to carry on its business as it is being conducted from time to time.

  
 12 

	 	6.2.	Capacity. It has the right, power, authority and capacity to execute and deliver this Agreement, to consummate the transactions contemplated hereby and to perform its obligations under this Agreement.

  

	 	6.3.	Authorization and binding obligations. This Agreement has been authorized by all necessary corporate action on its part, has been duly executed and delivered by it through its authorized officers, and it
represents valid and binding obligations enforceable against it in accordance with its terms. 

  

	 	6.4.	Consents. No consent, approval or authorization of, exemption by, or filing with, any governmental or regulatory authority or any third party is required in connection with the execution, delivery and performance
by Kenon of this Agreement and the consummation of the transactions contemplated herein other than filing or other actions required for the perfection of the pledges and security interests under Section 7.3 hereto. 

 

	 	6.5.	Non-conflict. Its entry into, and performance by it of, this Agreement does not and will not conflict with, or result in a violation of (i) its organizational documents, (ii) any other agreement to
which it is a party, (iii) any order, judgment, award, injunction, decree, ordinance or regulation or any other restriction by which it is bound, or (iv) any authorization, consent to which it is subject. 

 

	 	6.6.	Governmental regulation. It is not subject to regulation or other legal impediment under any applicable law which may limit its ability to incur indebtedness or which may otherwise render all or any portion of
the obligations under this Agreement illegal, invalid or unenforceable. 

  

	 	6.7.	No filing or stamp taxes. It is not necessary, under the laws of Kenon’s jurisdiction of incorporation that this Agreement be filed, recorded or enrolled with any court or other authority in that
jurisdiction or that any stamp, registration or similar tax be paid on or in relation to this Agreement or the transactions contemplated by this Agreement other than in relation to the perfection of pledges and security interests under Section 7.3
hereto by (i) a statement containing particulars of charge in respect of the security documents to be filed and lodged with the Accounting and Corporate Regulatory Authority of Singapore, and (ii) the payment of stamp duty (which on the
date hereof is in the amount of Singapore $500) payable in Singapore in respect of the stamping of security documents to be executed in respect of such pledges and security interests. 

 

	 	6.8.	Financial statements. The financial statements of Kenon are and will be prepared in accordance with generally accepted accounting principles, including International Financial Reporting Standards, consistently
applied and truly and fairly represent the financial condition of Kenon for the relevant financial period referred to therein. 

  
 13 

	 	6.9.	Governing law and enforcement. 

  

	 	6.9.1.	The choice of the law of the state of Israel as the governing law of this Agreement and the submission by Kenon hereunder to the jurisdiction of the courts of Tel-Aviv-Jaffa, Israel will be recognized and enforced in
Singapore, except, in respect of the choice of law provisions and solely in the case of enforcement of the provisions hereof in any court in Singapore, to the extent that such court determines any such provision to be illegal or contrary to public
policy or applicable mandatory law in Singapore or that any matters of procedure including questions of set-off and counter-claim, interest chargeable on judgment debts, priorities, measure of damages, limitation of actions and submissions to the
jurisdiction of foreign courts would be governed by the laws of Singapore to the exclusion of the relevant expressed governing law. 

  

	 	6.9.2.	Any judgment obtained in the courts in Tel-Aviv-Jaffa, Israel in relation to this Agreement will be recognized in Singapore, and will be enforced in Singapore, provided it is a final and conclusive, monetary judgment
for a fixed sum (other than for the payment of taxes, a fine or penalty), and subject to the following conditions: (i) the relevant court had jurisdiction over Kenon in that Kenon was, at the time such proceeding was instituted, resident in the
jurisdiction in which such proceeding had been commenced or had submitted to the jurisdiction of the relevant court; (ii) that judgment was not obtained by fraud; (iii) the enforcement of that judgment would not be contrary to public
policy of Singapore; and (iv) the judgment had not been obtained in contravention of the principles of natural justice. 

  

	 	6.10.	Pari passu ranking. Its payment obligations under this Agreement will rank at all times at least pari passu with the claims of all its other unsecured and unsubordinated creditors, except for obligations
mandatorily preferred by law applying to companies generally. 

  

	7.	Undertakings and Covenants of Kenon 

 Kenon undertakes in favor of IC from the
date of this Agreement and until the later of: (a) the date of final repayment of all amounts owed or payable under this Agreement and (b) the Qoros Guarantee Liability Termination, as follows: 

 

	 	7.1.	Information undertakings. 

  

	 	7.1.1.	to supply to IC as soon as the same are issued, the audited consolidated and unconsolidated annual financial statements as of the end of and for the previous financial year of Kenon, and in respect of each of the first
three financial quarters of each financial year of Kenon, the unaudited consolidated and unconsolidated interim financial statements for that financial quarter of Kenon, in each case prepared in accordance with generally accepted accounting
principles, including International Financial Reporting Standards, consistently applied; 

  

	 	7.1.2.	to supply, as soon as the same are issued and become available, the audited consolidated and unconsolidated annual financial statements as of the end of and for the previous financial year, and in respect of each of the
first three financial quarters of each financial year of IC Power and Qoros, the unaudited consolidated and unconsolidated interim financial statements for each financial quarter, of each of IC Power and Qoros, respectively, in each case prepared in
accordance with generally accepted accounting principles, including International Financial Reporting Standards, consistently applied; and 

  

	 	7.1.3.	 to promptly provide information and/or documentation regarding the financial condition, business and operations of each of Kenon, IC Power

  
 14 

	 	
and Qoros, as IC may reasonably request, including financial statements as of and for any financial period (whether before or after the Effective Date), in each case (including in respect of
financial statements provided pursuant to Sections 7.1.1 or 7.1.2) together with all reports, management’s letters, legal opinions and accountants/auditors’ comfort letters and consents for the inclusion of the foregoing in IC’s
public regulatory filings (provided that, the provision of third party letters and opinions so requested is consistent with market practice), and any other information and/or documentation, and provided further that the
aforesaid is required for fulfillment by IC of any legal or regulatory requirements, including for disclosure in any periodic report (including annual and quarterly reports and such other reports) and/or immediate report, according to applicable
regulatory reporting obligations to which IC will be subject and under any applicable law, or in the course of preparing and filing of public offerings of any kind (prospectuses, shelf prospectuses, registration statements and the like) or other
corporate filings in any jurisdiction required under any applicable law or regulations (in which case the request for such information shall be deemed to be reasonable). 

Without prejudice to the foregoing, it is agreed that where the financial statements of Kenon, IC Power or Qoros have been filed with the
Securities and Exchange Commission, failure to deliver such financial statements shall not constitute a breach of this undertaking unless IC has requested Kenon to deliver copies of such financial statements and Kenon has not delivered them to IC
within 5 (five) Business Days of such request. 
 Notwithstanding anything to the contrary in this Agreement, following the Final Repayment
Date, Kenon undertakes to promptly provide to IC, any of the aforesaid information and documents in accordance with Section 7.1.3 reasonably required by IC in order to comply with its filing obligations under applicable law (including financial
statements). Notwithstanding the aforesaid, following the Qoros Guarantee Liability Termination, Kenon will be required to provide the aforesaid information and documents in relation to Qoros only to the extent these are required by IC in order to
fulfill its filing obligations under applicable law. The provisions of this Section 7.1 shall survive the termination of this Agreement. 
  

	 	7.2.	Notifications. 

  

	 	7.2.1.	Kenon shall notify IC, promptly upon becoming aware, and otherwise at the request of IC, of the occurrence of any Default, breach of or non-compliance with any undertaking or condition contained in this Agreement (save
as would be considered to be de minimis), and the steps, if any, being taken to remedy it. 

  
 15 

	 	7.2.2.	Kenon shall notify IC, as soon as reasonably practicable after the occurrence of any acquisition or disposition of any material asset, any public offering or private placement of shares or other securities, or any
restructuring, rehabilitation or rescheduling of indebtedness, reorganization, scheme of arrangement or any similar event (including the commencement of negotiations with creditors or other stakeholders in connection therewith), commencement of any
proceedings for liquidation, bankruptcy, insolvency, winding-up or other proceedings affecting creditors’ rights generally, in each case by or in respect of any of Kenon, IC Power (including any subsidiary thereof which is material to its
business), Quantum (2007) LLC or Qoros. The report hereunder will contain a description of such events. Kenon’s obligations to notify IC in connection with IC Power (including its subsidiary as aforesaid), Quantum (2007) LLC or Qoros
as aforesaid shall be subject to the information being available to Kenon and within its knowledge. 

  

	 	7.2.3.	Kenon shall notify IC, promptly upon becoming aware, and otherwise at the request of IC, of (i) any restructuring, material change or amendment to the Qoros Loan Agreement or any agreement entered into by any
guarantor, credit support provider and/or by Quantum (2007) LLC in connection thereof, and (ii) the occurrence of any default or breach by Qoros pursuant to the Qoros Loan Agreement and/or by any guarantor, credit support provider and/or
by Quantum (2007) LLC pursuant to any other agreement or document entered in connection therewith, and shall provide IC any relevant information in that respect. 

 

	 	7.3.	Security interest over ICP Interests. 

  

	 	7.3.1.	Prior to the consummation of an IPO, Kenon undertakes to grant the following pledges and security interest in favor of IC as security for the full and punctual payment of all amounts owing by Kenon to IC from time to
time under this Agreement: 

  

	 	(a)	as soon as reasonably practicable following the Effective Date (and prior to the utilization of the Loan Facility in accordance with this Agreement (as a condition to the drawdown of the initial Loan hereunder)), create
a first ranking priority fixed pledge and security interest in favor of IC with respect to ICP Interests comprising no less than 40% of all ICP Interests then issued and outstanding; and 

 

	 	(b)	prior to the utilization of any Loan under the Loan Facility in accordance with this Agreement (as a condition to the drawdown of any Loan thereunder), create, or ensure the existence of, for each amount of
US$50,000,000 (or part thereof) out of the aggregate principal amount of all the Loans to be outstanding following the draw-down of such Loan, a first ranking priority fixed pledge and security interest in favor of IC with respect to ICP Interests
comprising 6.5% of all ICP Interests then issued and outstanding, provided that, the aggregate percentage of ICP Interests that shall be pledged hereunder shall not exceed 66% of all ICP Interests then outstanding. 

  
 16 

 By way of illustration: (I) the utilization of a Loan under the Loan Facility in a
principal amount of US$80,000,000 (assuming no Loans had been previously made) shall be subject to the creation of a pledge pursuant hereto with respect to ICP Interests comprising in the aggregate 53% of all ICP Interests then outstanding; (II) the
utilization of a Loan under the Loan Facility such that the aggregate principal amount of all Loans previously utilized together with the Loan to be utilized would exceed US$150,000,000 shall be subject to the creation or existence of a pledge(s)
pursuant hereto with respect to ICP Interests comprising in the aggregate 66% of all ICP Interests then outstanding), 
 in each case,
pursuant to security documents in form agreed by the parties prior to the draw-down of the initial Loan (mutatis mutandis according to the security interest pledged with respect to each Loan), provided that prior to the draw-down of future
Loans, IC shall be entitled to amend the form of the pledge documents to be executed by Kenon to the extent required as a result of changes in applicable law. 
  

	 	7.3.2.	Kenon shall execute and deliver to IC, no later than the dates referred to herein, all documents that are necessary for the purpose of registering or otherwise perfecting each pledge and security interest granted
pursuant hereto in accordance with applicable law in any relevant jurisdiction (including the recordation or registration thereof in any public registry in such jurisdiction), and shall pay all fees and charges (if any) in connection with such
registration or perfection and any stamp duty payable in Singapore in respect of the stamping of said security documents. At the request of IC, Kenon shall provide, upon the registration of any pledge (or an amendment thereto, as may be applicable),
a legal opinion of its Singaporean external legal counsel regarding the legality, validity and perfection of the pledge and security interest (and any amendment or extension thereof, as the case may be) under Singaporean law in form satisfactory to
IC. 

  

	 	7.3.3.	Without prejudice to the foregoing, Kenon shall, promptly following the request of IC, execute all documents and take all steps as IC may reasonably require in order to ensure that the pledges granted pursuant hereto
shall be valid and binding against third parties, and to execute and/or deliver to IC any additional and/or new pledge or amendment of, or supplement to, the foregoing pledges and any other documents as IC shall require for this purpose.

  

	 	7.3.4.	 In the event that any Transaction permitted by Section 7.5.2 is effected or consummated prior to the consummation of an IPO, Kenon undertakes to
ensure that the closing or completion of such Transaction shall be subject to the creation and registration of a pledge and security interest over the corresponding shares of the Purchasing Entity (together with any related rights and other rights
of Kenon as a shareholder in such entity), on substantially the same terms as the pledge granted over the ICP Interests pursuant hereto (provided however that IC may require to include or modify any term which it reasonably believes is
necessary to protect its interest and enable it to exercise any rights or remedies with respect to such pledge in accordance with applicable law), and Kenon shall execute 

  
 17 

	 	
such documents, complete such procedures and take all such actions as required by Sections 7.3.2 and 7.3.3 (including the registration of the pledge and security interest and the delivery of a
legal opinion at the request of IC). If Kenon shall notify IC that it is a condition to the closing or to the completion of the foregoing Transaction that any pledge(s) and security interest created and registered in favor of IC over any ICP
Interests shall be released, IC shall execute and deliver to Kenon a release in respect of such pledge(s) and security interest, which IC may subject by the creation and registration of the pledge and security interest referred to above upon or
immediately following the closing or completion of said Transaction. 

  

	 	7.3.5.	For the avoidance of doubt, the provisions of this Section 7.3 shall not be construed as limiting or restricting the grant of any security interest by IC Power over its assets including any shares or interests in its
subsidiaries. 

  

	 	7.3.6.	Following the consummation of an IPO, IC shall, within 3 (three) Business Days of Kenon’s request, and provided that no Default, breach of or non-compliance with any material undertaking or material
condition contained in this Agreement under this Agreement is then continuing and the ratio of Holdings Value to Net Debt on such day is at least equal to 2:1, confirm in writing to Kenon that the pledges created pursuant hereto shall be released,
and IC shall within such 3 Business Day period sign and deliver to Kenon the documents required in order to delete or deregister such pledges from any public registry in which they were recorded, in each case at the expense of Kenon.

  

	 	7.4.	Incurrence of Indebtedness. Following the consummation of an IPO, Kenon shall not incur nor assume any Financial Indebtedness (including the utilization or drawdown of any loan under any credit facility, other
than the drawdown of Loans under the Loan Facility in accordance with the terms of this Agreement, the Qoros Guarantee Liabilities Amounts, Commitment Fee Cancellation Accrual Amounts and any other indebtedness under this Agreement),
unless the ratio of Holdings Value to Net Debt is at least equal to 2:1 as of immediately following such incurrence (as calculated immediately prior to such incurrence, taking into account and giving effect to such incurrence. In
determining the effect of such incurrence, the net cash proceeds to be received under the Financial Indebtedness so incurred or assumed by Kenon shall not be taken into account in the calculation of the ratio of Holdings Value to Net Debt
unless it is either (A) actually applied (in whole or in part, as may be applicable) in exchange for, or to renew, refund, refinance, replace or discharge, any other Financial Indebtedness (in whole or in part), or
(B) deposited in a segregate account and pledged in favor of IC under a first ranking fixed pledge until application of any amount thereof in accordance with (A) above, in each case to the extent required to satisfy the required ratio of
Holdings Value to Net Debt). 

  

	 	7.5.	Transactions in IC Power or in ICP Interests. 

  

	 	7.5.1.	 Following the consummation of an IPO, Kenon shall not enter into nor permit, cause or agree to the entry into or consummation of, any transaction or a
series of related transactions, including (but not limited to) any sale, transfer, assignment, issuance, tender offer, share exchange, merger, reverse merger, repurchase or other transaction(s) or as a result of any corporate restructuring or
reorganization of IC Power, in each case 

  
 18 

	 	
involving the sale or issuance of any ICP Interests and/or the sale, transfer, conveyance, lease or other disposal of all of the assets of IC Power (a “Transaction”) in which
Kenon receives any cash proceeds as consideration under the Transaction, unless the ratio of Holdings Value to Net Debt is at least equal to 2:1 as of immediately following such Transaction (as calculated immediately prior to the
consummation thereof, taking into account and giving effect to such Transaction. In determining the effect of such Transaction, any amount of the net cash proceeds to be received by Kenon in the sale or issuance of ICP Interests (as opposed to the
sale, transfer, conveyance, lease or other disposal of IC Power’s assets as aforesaid) shall not be taken into account in the calculation of the ratio of Holdings Value to Net Debt unless it is either (A) actually applied (in
whole or in part, as may be applicable) in exchange for, or to renew, refund, refinance, replace or discharge, any Financial Indebtedness (in whole or in part), or (B) deposited in a segregate account and pledged in favor of IC under a first
ranking fixed pledge until application of any amount thereof in accordance with (A) above, in each case to the extent required to satisfy the required ratio of Holdings Value to Net Debt). 

 

	 	7.5.2.	Kenon shall not, enter into or effect a Transaction which would result in Kenon acquiring shares of another entity (including an entity formed by or surviving any merger, consolidation, amalgamation or combination with
or into IC Power) (the “Purchasing Entity”) in consideration of, in exchange for or against the tendering of, its shares in IC Power or in consideration of the sale, transfer, conveyance, lease or other disposition of all or
substantially all of the assets of IC Power to the Purchasing Entity, unless all of the following conditions are satisfied (without prejudice to the provisions of Section 7.3.4): 

 

	 	(a)	before the consummation of an IPO, the Purchasing Entity is organized in a country which has diplomatic ties with the State of Israel; and 

 

	 	(b)	following the consummation of an IPO, the shares of the Purchasing Entity acquired by Kenon in such Transaction are listed for trading on any recognized exchange in any jurisdiction. 

In the event that a Transaction permitted under this Section is effected or consummated, the provisions of this Agreement that apply to shares
in IC Power or to ICP Interests shall apply, mutatis mutandis, to the shares of the Purchasing Entity (and, where applicable, references to IC Power and to ICP Interests, including for the avoidance of doubt under the definition of Holdings
Value and for the purpose of the undertakings under Sections 7.1 (Information undertakings) and 7.2 (Notifications), shall be construed as references to the Purchasing Entity and to the shares in the Purchasing Entity, and for the
avoidance of doubt such provisions shall thereupon cease to apply to IC Power and to ICP Interests). 
  

	 	7.5.3.	Notwithstanding anything to the contrary herein, Kenon shall not enter into any transaction or a series of related transactions following the consummation of an IPO, as a result of which the shares of IC Power cease or
will cease to be listed or traded on a recognized exchange. 

  
 19 

	 	7.6.	Distributions by Kenon. It will not make, nor resolve to make or permit, cause or agree to the payment of, any Distributions other than as set out below: 

 

	 	7.6.1.	prior to the consummation of an IPO, Kenon may resolve or approve a Distribution in-kind to its shareholders consisting solely of shares of Zim Integrated Shipping Services Limited and/or shares of Petrotec AG and/or
shares of Tower Semiconductor Limited held by Kenon; 

  

	 	7.6.2.	following the consummation of an IPO, Kenon may make, resolve to make or permit, cause or agree to the payment of, any Distributions, provided that upon payment of such Distributions and immediately after
giving effect to payment of such Distributions, the ratio of Holdings Value to Net Debt is at least equal to 2:1; and 

  

	 	7.6.3.	IC agrees that in the event that Kenon meets its undertakings under this Section 7.6 but does not have sufficient retained earnings in order to make any non-cash distribution in-kind (but, for the avoidance of doubt,
not any cash distribution (in whole or in part)), IC will not object to Kenon’s application for a capital reduction, if so needed in order to enable the making of such Distribution, provided however that such agreement shall not
prejudice any other obligation of Kenon hereunder nor constitute a waiver by IC of any of its rights under this Agreement, including for the avoidance of doubt, any rights which arise following any breach by Kenon or a default under this Agreement.

  

	8.	Events of Default 

 Each of the events or circumstances set out in this Section 8
is an “Event of Default” (whether or not caused by any reason outside the control of Kenon or of any other person): 
  

	 	8.1.	Non-payment. Kenon does not pay on the due date any amount payable pursuant to this Agreement, unless payment is made as soon as practicable and in any event within 5 (five) Business Days of its due date (other
than any payments due on the Loans Repayment Date (as may be extended in accordance with Section 4.1 hereto) or the Final Repayment Date, as applicable, for which there shall be no grace or cure period). 

 

	 	8.2.	Breach of Certain Undertakings. Kenon does not comply with any of the covenants or undertakings in Sections 7.4 (Incurrence of Indebtedness), 7.5 (Transactions in IC Power or in ICP Interests), and
7.6 (Distributions by Kenon). 

  

	 	8.3.	Cross default. Any Financial Indebtedness of Kenon is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described), provided
that the aggregate amount of such Financial Indebtedness exceeds individually or in aggregate US$50,000,000 (fifty million US Dollars) (or its equivalent in any other currency or currencies) and such Financial Indebtedness remains unpaid
for, or has not been discharged or stayed within, 14 consecutive days thereafter. 

  

	 	8.4.	Insolvency. Kenon is unable to pay its debts as they fall due, commences negotiations with its creditors with a view to the general readjustment, rehabilitation or rescheduling of its indebtedness (excluding, for
the avoidance of doubt, any bona fide refinancing of then existing debt), makes a general assignment for the benefit of a rehabilitation scheme with its creditors, or is declared by a competent court or a governmental authority as being
insolvent for the purposes of any applicable insolvency or bankruptcy law. 

  
 20 

	 	8.5.	Insolvency proceedings. 

 Any corporate action, legal proceedings or other procedure or
step is taken in relation to: 
  

	 	8.5.1.	The winding-up, dissolution, administration, judicial management, rehabilitation or reorganization (by way of voluntary arrangement, scheme of arrangement or otherwise) of Kenon; 

 

	 	8.5.2.	the appointment of a liquidator, receiver, trustee, administrator, judicial manager, compulsory manager or other similar officer in respect of Kenon or any of its assets; or 

 

	 	8.5.3.	enforcement of any security or attachment over any assets of Kenon in each case in respect of indebtedness exceeding individually or in aggregate US$50,000,000 (fifty million US Dollars), 

or any analogous procedure or step is taken in any jurisdiction or an application for the recognition of foreign proceedings under applicable
law is made in respect of Kenon. 
 No Event of Default will occur under this Section 8.5 by reason of any legal proceedings or other
procedure or step (or analogous procedure or step taken in any jurisdiction) presented or taken by any person other than by Kenon, as applicable, which is being contested in good faith and is fully cancelled or discharged within 45 (forty-five)
Business Days of its commencement or presentation. 
 On and at any time after the occurrence of an Event of Default which is continuing, IC
may, by written notice to Kenon: (i) cancel the Loan Facility or any part thereof whereupon it shall immediately be cancelled; (ii) declare that all or part of the Loans and the Qoros Guarantee Liability Amount then outstanding, together
with accrued interest, and all other amounts accrued or outstanding under the Agreement be immediately due and payable, whereupon they shall become immediately due and payable; and/or (iii) declare that all or part of the Loans and the Qoros
Guarantee Liability Amount then outstanding, together with accrued interest, and all other amounts accrued or outstanding under the Agreement be payable on demand, whereupon they shall immediately become payable on demand by IC. 

In the event that all or any part of the Loans and the Qoros Guarantee Liability Amount have been declared payable pursuant hereto, IC shall be
entitled to take all steps it deems fit in order to collect all sums owed by Kenon, including, to enforce any pledges granted pursuant to Section 7.3 and to realize all or any of the assets pledged under the security documents to recover any amounts
owed by Kenon. For avoidance of doubt, the Events of Default set out in this Section 8 shall be in addition to, and nothing in this Section shall operate or be construed so as to prejudice or derogate from, any other rights, causes of action,
remedies and relief available to IC under this Agreement or by applicable law. 

  
 21 

	9.	Miscellaneous 

  

	 	9.1.	Announcements. The Parties agree to use reasonable efforts to coordinate in advance any public announcement or filing in respect of this Agreement or the transactions contemplated hereby required by applicable
law or by the regulations of any applicable stock exchange, and otherwise neither Party shall communicate with any media without the prior written consent of the other party, provided that nothing herein shall prevent either Party from
making such disclosures in any manner as it shall determine are required by applicable law. The foregoing notwithstanding, Kenon acknowledges that information provided by it in connection with this Agreement may be disclosed by IC in its public
filings. 

  

	 	9.2.	Entire Agreement. This Agreement constitutes the entire agreement between the Parties hereto pertaining to the subject matter hereof, and any and all other written or oral agreements relating to the subject
matter hereof existing between the Parties hereto are expressly cancelled. 

  

	 	9.3.	Amendment. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only
with the written consent of the Parties. 

  

	 	9.4.	Limitation of Liability. In no circumstances shall IC be required to pay nor be liable to Kenon for any consequential, indirect or punitive damages, opportunity costs or lost profits (whether arising from its
negligence or breach of contract or otherwise), save only that nothing herein shall exclude liability for fraud. 

  

	 	9.5.	Assignment. 

  

	 	9.5.1.	IC may, at any time, and without the consent of Kenon, assign or transfer all or any of its rights, benefits and obligations under the Agreement to any Financial Institution, provided that: (i) the
transferee will take upon itself all such rights and obligations so transferred or assigned pursuant hereto and (ii) the assignment will not derogate from Kenon’s rights under this Agreement and will not impose on Kenon any further or
increased liability whatsoever to indemnify the other party or to pay for any tax liabilities in pursuant to this Agreement that are not applicable to it prior to such assignment. 

In this Section, “Financial Institution” means any bank, insurer, trust, fund (including pension funds, provident funds and
investment funds) or any other entity, incorporated in any jurisdiction, which is regularly engaged in or established for the purpose of making, purchasing or investing in loans, securities or other financial assets and which is supervised by a
governmental body in the country of its incorporation. 
 If as a result of circumstances existing at the date of the assignment or
transfer, Kenon would be obliged to make an increased payment to the transferee in accordance with Section 5.3.1, then the transferee will only be entitled to receive payment under Section 5.3.1 to the same extent as the transferring party would
have been if the assignment or transfer had not occurred. 
  

	 	9.5.2.	 Kenon’s rights and obligations under this Agreement shall not be assigned, transferred or delegated without IC’s prior written consent,
except that Kenon may assign its obligations under this Agreement to any affiliate thereof (being any person or entity which is directly or indirectly 

  
 22 

	 	
controlling or controlled by or under direct or indirect common control with Kenon), provided that Kenon shall remain liable for all such obligations, jointly and severally with
such transferee and without prejudice to any rights of IC under this Agreement (for the purpose hereof Kenon irrevocably waives any defense it may have and any right of first requiring to proceed against or enforce any other rights or security or
claim payment from any person before claiming payment from Kenon, irrespective of any law or the provision of any agreement to the contrary), and provided further that such transfer shall not prejudice any rights of IC under this
Agreement. Any assignment or attempted assignment without IC’s written consent shall be void and of no force or effect. 

  

	 	9.6.	Successors and Assigns. Without prejudice to the provisions of Section 9.5 (Assignment), this Agreement shall inure to the benefit of, and be binding upon, the successors and assigns of the Parties hereto.

  

	 	9.7.	Remedies. No failure to exercise, nor any delay in exercising, on the part of a party hereto, any right or remedy hereunder or under law 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 provided to the Parties under this Agreement are cumulative and not exhaustive or exclusive of any rights or
remedies provided under applicable law. Specifically, the rights and remedies afforded to IC in Section 8 are not exhaustive or exclusive of any other causes of action in respect of breach (material or otherwise) or non-compliance which IC may claim
against and/or remedies it may pursue in respect thereof. Any extension of time or waiver given, or compromise made, with respect to a specific event by IC, shall apply only with respect to such specific event and shall not be interpreted as
applying to any other event and shall not derogate from IC’s rights under this Agreement or under applicable law (save as expressly stated in such waiver or compromise). 

 

	 	9.8.	No Third Party Beneficiaries. This Agreement is made for the Parties hereto, and no third party shall have any right hereunder or be deemed a beneficiary hereof (except as expressly set forth herein to the
contrary). 

  

	 	9.9.	Notices. Any notice, demand or other communication required to be given by one Party to another under this Agreement shall be in writing and shall be deemed to have been served: (i) if personally delivered,
when actually delivered; or (ii) if sent by facsimile or e-mail, on the day sent (and if such day is not a Business Day, the Business Day immediately following) subject to receipt of confirmation of transmission; or (iii) 5 (five) Business
Days after being mailed by certified or registered mail, postage prepaid (for the purposes of proving such service, it being sufficient to prove that such notice was properly addressed and posted) to the respective addresses of the Parties set out
herein: 

 if to IC: 
  

			
	Address:	  	
		  	
		
	e-mail:	  	
		  	

  
 23 

			
	Attention:	  	Legal Department; Financial Department
	
	if to Kenon:
		
	Address:	  	
		
		  	
		
		  	
		
	e-mail:	  	
		
		  	
		
	Attention:	  	Legal Department, Finance Department

 or at such other address or email as any Party shall have furnished to the other in writing in accordance with
this Section. 
  

	 	9.10.	Governing Law. The internal laws of the State of Israel, without regard to its conflict of laws rules, shall govern the validity, the construction of its terms and the interpretation of the rights and duties of
the Parties hereunder. 

  

	 	9.11.	Jurisdiction and Service of process. The appropriate courts in Tel-Aviv-Jaffa, Israel shall have exclusive jurisdiction over any dispute or claim in connection with this Agreement or any of the transactions
contemplated hereby, and the Parties hereby irrevocably submit to such jurisdiction. 

 The parties agree that this Section is
made for the benefit of IC only. As a result, IC shall not be prevented from taking proceedings to settle any matter, dispute or relating to this Agreement or to enforce any right or remedy it may have in connection herewith in any courts with
jurisdiction in Singapore or in any jurisdiction in which Kenon has assets, as it may deem appropriate and necessary in its sole discretion. To the extent allowed by law, the taking of proceedings in one jurisdiction shall not limit preclude the
taking of proceedings (whether concurrently or not) in any other jurisdiction. 
 Kenon hereby agrees that the process by which any suit,
action or proceedings be initiated or conducted may be served on it by being delivered in connection with any such proceedings in Israel to IC Green Energy Ltd. (“IC Green”). 

A copy of the appointment letter and the consent of IC Green to act as agent for service is attached hereto as Exhibit A. If the
appointment of IC Green ceases to be effective, the undersigned shall immediately appoint another person or entity in Israel to accept service of process on its behalf in Israel and, failing such appointment within 21 (twenty one) days, service to
the law firm of Meitar Liquornik Geva Leshem Tal Law Offices, to the attention of any two of the following: Advs. Dan Geva, Michael Rimon, Judith Gal-Or, Assaf Oz, Tomer Sela and David Glatt (or, in their absence, to any partner in that law firm)
will constitute due service of process to Kenon. Nothing contained herein shall affect the right to serve process in any other manner permitted by applicable law. 

  
 24 

	 	9.12.	Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be enforceable against the Parties actually executing such counterparts, and all of which together shall constitute
one instrument. 

 [Signature Page to Follow] 

  
 25 

 IN WITNESS WHEREOF, the Parties have executed this LOAN AGREEMENT as of the date first above written. 

 

			
	ISRAEL CORPORATION LTD.
	
	  

		
	By:	 	  

		
	Title:	 	  

	
	KENON HOLDINGS LTD.
	
	  

		
	By:	 	  

		
	Title:	 	  

 SIGNATURE PAGE OF THE LOAN AGREEMENT 

 SCHEDULE 1 

DRAWDOWN NOTICE 
  

			
	From:	  	Kenon Holdings Ltd.
		
	To:	  	Israel Corporation Ltd.
		
	Dated:	  	

 Dear Sirs, 
 We refer to the
loan agreement with you dated             , 2015 (the “Agreement”). Capitalized terms have the meanings given to them in the Agreement. We wish to borrow a Loan on the
following terms: 
  

	(a)	Amount: US$         

  

	(b)	Date on which a Loan is to be made:                     , (or, if that date is not a Business Day, the next
Business Day), such date being a date falling within the Availability Period. 

  

	(c)	Payment delivery details for proceeds of the Loan: 

 We confirm that each of the conditions for submission of
this Drawdown Notice as set forth by the Agreement is satisfied on the date of the requested drawdown (after giving effect thereto, if applicable). 
  

	
	Yours faithfully,
	
	  

	KENON HOLDINGS LTD.

 EXHIBIT A 

CONSENT OF IC GREEN 

Kenon Holdings Ltd. 

[ADDRESS] 
 IC Green Energy Ltd. 

[ADDRESS] 
 Attention: 

, 2015     
 Dear Sirs, 

Re: Appointment of Process Agent 
  

	1.	We refer to the Loan Agreement dated              day of         , 2015, by and between Israel Corporation Ltd.
(“IC”) and Kenon Holdings Ltd. (“Kenon”), as may be amended, supplemented, modified or replaced (the “Loan Agreement”). Terms used hereinafter and hereinabove shall have the meanings ascribed to
them in the Loan Agreement (including any Schedules or Exhibits thereto), unless explicitly dictated otherwise herein. 

  

	2.	We hereby appoint you as our agent for service of process by which any suit, action or proceeding is begun in the courts of the State of Israel arising out of or in connection with the Loan Agreement, on the terms set
out in this letter. 

  

	3.	Your appointment shall cease only upon receipt of notice of confirmation from IC (or any successor, assignee or representative thereof) or upon receipt of a copy of notification from Kenon to IC of appointment of and
alternative process agent in your stead. 

 If the Loan Agreement is extended, amended, restated or otherwise modified, your
appointment will, nonetheless, be extended and continued accordingly. 
  

	4.	On receipt of service of process addressed to us by which any suit, action or proceeding is begun in the courts of the State of Israel arising out of or in connection with the Loan Agreement, you shall:

  

	 	4.1	accept service on our behalf; 

  

	 	4.2	notify in writing by email or by fax to the email address or the number stated in this letter, as applicable (or another email address or fax number notified in writing to you by us from time to time), in either case
containing the following: 

  

	 	(a)	the date on which you accepted service of process on our behalf. 

  

	 	(b)	a request by you for the name of the law firm in the State of Israel to whom the originals of the document(s) served on you should be sent. 

 but need not contain any other information nor details of the nature or substance of the claim
made against us. 
  

	 	4.3	You shall also send a copy of the notice referred to in paragraph 4.2 to us by mail or courier to the address stated in this letter (or another address notified in writing to you by us from time to time) with a copy of
the process served. 

  

	5.	Your dispatch of the notice referred to in paragraph 4.2 or paragraph 4.3 is a good discharge of your obligations contained in the relevant paragraph, whether or not we receive the relevant notice and whether or not you
are aware that we may not have received a notice previously sent to us by you. If, in your opinion, your dispatch or our receipt of either of the notices to be sent to us pursuant to paragraph 4.2 or paragraph 4.3 might be prevented, hindered or
delayed by a cause beyond your control (including, without limitation, interruptions in postal or other communications services) your obligations under those paragraphs are suspended until, in your opinion, dispatch will not be prevented, hindered
or delayed in that way. While your obligations are suspended you shall, if the relevant telephone services are operating normally, use reasonable efforts to give us the information referred to in paragraph 4.2 by telephone call to the number stated
in this letter (or another number notified in writing to you by us from time to time). 

  

	6.	You are instructed to notify us and IC of any change in your name or address as well as of any proposed change in your status that could lead to your winding-up or dissolution or of any contemplated cessation in
maintaining an office or place of business in Israel. 

  

	7.	This letter and any obligations arising out of or in connection with it are governed by, and shall be construed in accordance with, Israeli law. The competent courts of Tel-Aviv-Jaffa, Israel shall have exclusive
jurisdiction on any matters arising out of or in connection with this letter. 

  

	8.	Please acknowledge your acceptance of the terms of this letter by signing the acknowledgement below. We shall notify the parties to the Loan Agreement that you have accepted the terms of this letter and provide them
with a copy of this letter and your acceptance. 

  

	
	
	
	Yours faithfully

  

	
	a duly authorized representative of Kenon Holdings Ltd.

  
 2 

 We acknowledge receipt of your letter of which this is a true copy. We accept the appointment as agent for
service process described in the letter on the terms the letter sets out, and undertake to comply with such terms. 
  

	
	a duly authorized representative of IC Green Energy Ltd.

  
 3

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