Document:

20-F

Exhibit 4.93  

	 	
September
25, 2008 

Tower Semiconductor Ltd. 

Re:   Undertaking  

	1.  	General
Provisions

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

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

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

	2.  	Definitions
and Interpretation

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

	 	2.12.2. 	“including” means
including, without limiting the generality of                any description preceding
such terms;  

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

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

	 	2.12.5. 	“Subsidiary” of
a person means any company which is directly or                indirectly controlled by
such person; and  

	 	2.12.6. 	“US Dollars” denotes
the lawful currency of the United                States of America.  

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

	3.  	The
Undertaking

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

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

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

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

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

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

	4.  	Termination
or Suspension of the Undertaking

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

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

	5.  	Entry
of this Undertaking into Effect

	 	
This
Undertaking will become effective upon:  

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

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

	6.  	Company
Obligation

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

	7.  	No
Set-Off or Counterclaim  

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

	8.  	Representations
and Warranties

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

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

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

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

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

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

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

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

	9.  	Binding
Agreement; No Transfer

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

	10.  	Remedies
and Waivers  

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

	11.  	Notices

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

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

	 		 

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

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

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

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

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

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

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

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

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

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

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

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

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

	12.  	Amendments  

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

	13.  	Counterparts  

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

	14.  	Governing
Law And Jurisdiction  

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

	15.  	Entire
Agreement

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

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

	16.  	Partial
Invalidity

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

[Signature Page to
Safety Net undertaking] 

Sincerely, 

Israel Corporation Ltd. 

____________________________

By: _________________________

Title: ________________________

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

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

Tower Semiconductor Ltd.

____________________________

By: _________________________

Title: ________________________

S C H E D U L E  1  

Clause 16.27 of the
Facility Agreement  

Investments
in the Borrower  

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

S C H E D U L E  2  

Form of
Contribution Notice  

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

Dear Sirs, 

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

          

     	2.	
          The Net Cash Balance was calculated as follows: 

          

	 	2.1 	Cash
Balance:

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

	 	2.2 	Outstanding
Payments due to Third Parties:

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

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

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

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

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

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

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

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

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

          

	
——————————————

for and on behalf of

 TOWER SEMICONDUCTOR LTD 	
 

S C H E D U L E  3  

Clause 1.1.112 of
the Facility Agreement 

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

S C H E D U L E  4  

Outside Investment
Undertaking20-F

Exhibit 4.94  

SECURITIES PURCHASE
AGREEMENT  

        This
Securities Purchase Agreement (the “Agreement”) is made and entered into
effective as of September 25, 2008 by and between TOWER SEMICONDUCTOR LTD. (the
“Company” or “Tower”), a company organized under the
laws of the State of Israel and ISRAEL CORPORATION LTD., a company organized under the
laws of the State of Israel (the “Purchaser”). 

        WHEREAS,
Tower is an independent manufacturer of wafers whose Ordinary Shares are traded on the
Nasdaq National Market under the symbol TSEM and whose Ordinary Shares and certain other
securities are traded on the Tel-Aviv Stock Exchange (“TASE”) under the
symbol TOWER; 

        WHEREAS,
pursuant to a letter between Bank Hapoalim B.M. and Bank Leumi Le-Israel B.M.
(collectively the “Banks”), Tower and the Purchaser, dated August 19,
2008 (the “MOU”), the Purchaser has committed to the Banks, inter
alia, subject to certain conditions as provided in the MOU, to invest in the Company a
sum of twenty million US Dollars as set forth in this Agreement (the
“Investment”); 

        WHEREAS,
pursuant to the MOU, the Investment in Tower is a condition precedent to the closing of an
amendment of the Facility Agreement (as defined in the MOU) and other definitive
documentation (the “Amendment”); and 

        NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained herein and
for other good and valuable consideration the receipt and adequacy of which are hereby
acknowledged, the parties agree as follows: 

	1  	Issue
and Sale of Securities by the Company.  

	1.1  	Securities.
Subject to and in accordance with the terms and conditions of this Agreement, the Company
shall issue to the Purchaser, and the Purchaser shall purchase from the Company for an
aggregate purchase price of US $20,000,000 in immediately available funds (the “Note
Purchase Price”) an equity convertible capital note, which capital note is
convertible into 28,169,014 shares of the Company (subject to adjustments to changes in
capital structure, stock splits, etc.), such capital note being fully convertible, at any
time, in whole or in part and freely transferable, at any time, in whole or in part in
the form attached hereto as Schedule 1 (the “Capital Note”). For
the avoidance of doubt, the Capital Note issuable hereunder shall not entitle TIC to
interest, dividends, early redemption rights (for the removal of doubt, no conversion of
capital notes by TIC into shares shall be deemed a redemption or pre-payment of the
capital note), anti-dilution rights, or any adjustments due to changes to interest rates,
the market price of the Company’s shares or indexation of any kind, but shall
entitle TIC, as a capital note holder, to participate in rights offerings and shall be
subject to certain adjustments, including share splits, combinations and other
adjustments and with rights which are at least as good as the capital notes issued to the
Banks pursuant to a Conversion Agreement entered into with Tower on the date hereof. 

	2  	Closing.  

	2.1  	Closing
Date. The issue and allotment of the Capital Note, the purchase thereof by the
Purchaser and the registration of the Capital Note in the name of the Purchaser in the
register of the Company, shall take place at a closing (the “Closing”)
to be held on September 25, 2008 simultaneous with its signing in Tel Aviv, Israel at the
offices of Yigal Arnon & Co., One Azrieli Center, Tel-Aviv, Israel, or such other
time and place as the parties shall mutually agree. In the event that the Closing does
not take place prior to September 30, 2008, the Purchaser shall have the right, but not
the obligation, to cancel this Agreement unless the Purchaser has caused the Closing not
to have occurred in breach of this Agreement. The Company shall use its commercially
reasonable best efforts to (i) take or cause to be taken all necessary actions, and do or
cause to be done all things, necessary, proper or advisable under this Agreement and
applicable laws to consummate and make effective all the transactions contemplated by
this Agreement as soon as practicable, including, without limitation, preparing and
filing all documentation to effect all necessary filings, notices, petitions, statements,
registrations, submissions of information, applications and other documents and (ii)
obtain all approvals required to be obtained from any third party necessary, proper or
advisable to the transactions contemplated by this Agreement. The Purchaser shall
cooperate with the Company in the achieving the above but the primary responsibility
(including but not limited to bearing the relevant expenses therefor) shall be the Company’s. 

	2.2  	Transactions
upon Closing. 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: 

	 	a) 	the
Company shall deliver to the Purchaser copies of resolutions of the                Company’s
Audit Committee, the Company’s Board of Directors and the                Company’s
shareholders approving the execution and performance of this                Agreement,
including the issuance of the Capital Note; 

	 	b) 	the
Note Purchase Price shall be transferred by the Purchaser to the Company by
               wire transfer into the account of the Company, in accordance with the
written                instructions provided by the Company to the Purchaser; 

	 	c) 	the
Company shall deliver to the Purchaser a copy of the approval of the TASE
               for listing the shares issuable upon conversion of the Capital Note (the
               “Shares”); 

	 	d) 	the
Company shall record such issuance of the Capital Note in the name of the
               Purchaser on the records of the Company; 

	 	e) 	The
Closings of the Amendment and each of the conversion agreements entered into
               between the Company and the Banks shall take place simultaneously with the
               Closing under this Agreement; and 

	 	f) 	The
Amended and Restated Registration Rights Agreement shall be executed and
               delivered by the Company, in the form attached hereto as Schedule 2. 

	 	g) 	The
Company shall pay the Purchaser US $100,000 as the first installment of the
               fee of US$300,000 provided for under the MOU. 

	 	h) 	The
legal opinion of Yigal Arnon & Co., Advocates, the Company’s
               external legal counsel has been delivered to the Purchaser. 

	3  	Representations
and Warranties of the Company.  

The Company hereby represents and
warrants to the Purchaser, as follows:  

	3.1  	Organization.
The Company is duly organized and validly existing under the laws of the State of Israel
and has full corporate power and authority to own, lease and operate its properties and
assets and to conduct its business as now being conducted and to perform all its
obligations under this Agreement. 

	3.2  	Memorandum
and Articles of Association. The Company has made available for inspection by the
Purchaser complete and correct copies of the Articles of Association of the Company, as
amended to the date furnished. Such Articles of Association are in effect as of the date
hereof and as will be in effect at the Closing. 

	3.3  	Share
Capitalization.  

	 	        As
of September 25, 2008, the authorized share capital of the Company consists of
1,100,000,000 ordinary shares, of which 159,656,318 shares are issued and outstanding,
135,523,401 shares are reserved for issuance upon exercise of outstanding options and
warrants (including options granted to employees, officers, directors, related parties,
banks, and other public investors), 96,504,214 shares are reserved for issuance upon
conversion of outstanding convertible debentures, 321,988,510 shares are reserved for
issuance upon conversion of equity equivalent capital notes, and 5,900,000 shares are
reserved for future grants of options to employees, officers, consultants and directors.
Attached hereto as Schedule 3 is a capitalization table reflecting all
shareholdings and holdings of securities (including capital notes, warrants, options and
convertible debentures) in the Company after the Closing. All issued and outstanding
share capital of the Company has been duly authorized, and is validly issued and
outstanding and fully paid and non-assessable. The Capital Note and the Shares issued
upon its conversion will be validly issued, fully paid, nonassessable and not subject to
any pledge, lien or restriction on transfer, except for restrictions on transfer imposed
hereunder and by the applicable securities laws. The Company has reserved for issuance
enough ordinary shares to issue the Shares. The issuance of the Capital Note and the
Shares issued upon its conversion will not conflict with the Articles of Association of
the Company then in effect nor with any outstanding warrant, option, call, preemptive
right or commitment of any type relating to the Company’s capital stock.  

	3.4  	Authorization;
Approvals. Prior to the Closing, all corporate action on the part of the Company
necessary for the execution, delivery and performance of this Agreement and the other
agreements contemplated to take place at the Closing shall have been taken. Except as set
forth in Schedule 4.4, 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 the Company of this Agreement
and the consummation by the Company of the transactions contemplated hereby. Other than
approval by the Company’s shareholders, this Agreement when executed and delivered
by or on behalf of the Company, shall constitute the valid and legally binding
obligations of the Company, legally enforceable against the Company in accordance with
its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other laws relating to creditor’s rights generally
and general principles of equity. 

	3.5  	No
Conflicts. Neither the execution and delivery of this Agreement by Tower, nor the
compliance with the terms and provisions of this Agreement on the part of Tower, will:
(i) violate any statute or regulation of any governmental authority, domestic or foreign,
affecting Tower; (ii) require the issuance of any authorization, license, consent or
approval of any governmental agency, or any other person other than as set forth in Schedule
4.4; or (iii) conflict with or result in a breach of any of the terms, conditions or
provisions of any judgment, order, injunction, decree, loan agreement or other material
agreement or instrument to which Tower is a party, or by which Tower is bound, or
constitute a default thereunder, the effect of which might have a material adverse effect
on Tower. 

	3.6  	No
Litigation. There are no actions, suits, proceedings, or injunctive orders, pending
or threatened against or affecting Tower relating to the subject matter of this Agreement
or any of the transactions expected to take place simultaneously at the Closing. 

	3.7  	Cross
Default. Upon the Closing of the Amendment, the Company will not be in default under
the Facility Agreement. 

	3.8  	The
Capital Notes shall have rights which are at least as good as the capital notes issued to
the Banks pursuant to a Conversion Agreement entered into with Tower on the date hereof. 

	4  	Representations
and Warranties of the Purchaser.  

The Purchaser hereby represents and
warrants to the Company as follows:  

	4.1  	Organizations;
Good Standing. The Purchaser is a corporation duly organized, validly existing, and
in good standing under the laws of the State of Israel with full corporate power and
authority to perform all its obligations under this Agreement. 

	4.2  	Authorization;
Approvals. Prior to the Closing, all corporate action on the part of the Purchaser
necessary for the execution and delivery of this Agreement and other agreements
contemplated hereby has been taken. No consent, approval or authorization of, exemption
by, or filing with, any governmental or regulatory authority is required in connection
with the execution, delivery and performance by the Purchaser of this Agreement and the
consummation by the Purchaser of the transactions contemplated hereby except relating to
the filing of an amendment to a Schedule 13D which will be required with the US
Securities and Exchange Commission. This Agreement and other agreements contemplated
hereby, when executed and delivered by or on behalf of the Purchaser, shall constitute
the valid and legally binding obligations of the Purchaser, legally enforceable against
the Purchaser in accordance with their respective terms, subject to applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other laws
relating to creditor’s rights generally and general principles of equity. 

	4.3  	Investment
Intent; No Registration  

	 	        The
Purchaser is acquiring the Capital Note and the Shares issued upon its conversion for its
own account and not with a view to their distribution within the meaning of Section 2(11)
of the Securities Act of 1933 (the “Securities Act”). The Purchaser has
requisite knowledge and experience in financial and business matters to be capable of
evaluating the merits and risks of an investment in the Company and is an accredited
investor as defined under Regulation D as promulgated by the United States Securities and
Exchange Commission; and  

	 	        The
Purchaser understands that none of the Capital Note or the Shares issued upon its
conversion have been registered under the Securities Act, or the laws of any
jurisdiction, and agrees that the Capital Note and the Shares issued upon its conversion
may not be sold, offered for sale, transferred, pledged, hypothecated or otherwise
disposed of except in compliance with the Securities Act, Israeli Securities Law or any
applicable securities laws of any jurisdiction (including but not limited to pursuant to
an exemption therefrom). The Purchaser also acknowledges that the Capital Note and the
Shares issued upon its conversion, upon issuance, will bear the following legend:  

	 	        THESE
SECURITIES HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT”), OR ANY STATE OR OTHER JURISDICTION’S SECURITIES LAWS.
THESE SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE OR PLEDGED, HYPOTHECATED OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE
SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL (SATISFACTORY IN FORM AND SUBSTANCE TO
THE COMPANY) THAT SUCH REGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT TO RULE 144
OF THE ACT.  

	4.4  	No
Litigation. There are no actions, suits, proceedings, or injunctive orders, pending
or threatened against or affecting the Purchaser relating to the subject matter
of this Agreement. 

	5  	Conditions
of Closing of the Purchaser.  

The obligations of the Purchaser to purchase the Capital Note and to transfer the Note
Purchase Price at the Closing are subject to the fulfillment at or before the Closing of
the following conditions precedent, any one or more of which may be waived in whole or in
part by the Purchaser, which waiver shall be at the sole discretion of the Purchaser: 

	5.1  	Representations
and Warranties. The representations and warranties made by the Company in this
Agreement shall have been true and correct when made, and, shall be true and correct in
all material respects as of the Closing, as if made on the date of the Closing. 

	5.2  	Covenants.
All covenants, agreements, and conditions contained in this Agreement to be performed or
complied with by the Company prior the Closing shall have been performed or complied with
by the Company prior to or at the Closing. 

	5.3  	Consents,
etc. The Company shall have secured all permits, consents and authorizations that
shall be reasonably necessary or required lawfully for the Company to consummate this
Agreement and to issue the Capital Note and the Shares issued upon its conversion to be
purchased by the Purchaser at the Closing, including the approval of the Company’s
Audit Committee, Board of Directors and General Assembly and third party and/or
governmental consents. 

	5.4  	Registration
Rights Agreement. The Company and the Purchaser shall have entered into a
registration rights agreement in form and substance satisfactory to the Purchaser and the
Banks and with rights which are at least as good as those provided to the Banks and no
worse than those currently enjoyed by the Purchaser and provides a satisfactory
arrangement with respect to the registration rights of the Shares of the Company owned by
the Purchaser on the date of this Agreement. 

	5.5  	Delivery
of Documents. All of the documents to be delivered by the Company, and all actions to
be performed or concluded pursuant to Section 2 by the Company, shall be in a form and
substance reasonably satisfactory to the Purchaser and its counsel and shall have been
delivered to the Purchaser. 

	5.6  	The
Amendment. The conditions precedent for the closing of transactions contemplated by
the Amendment shall have been satisfied (or waived by the Bank) other than the Investment
contemplated by this Agreement which shall take place simultaneously thereto. 

	6  	Conditions
of Closing of the Company.  

The obligations of the Company to sell and issue the Capital Note at the Closing are subject
to the fulfillment at or before the Closing of the following conditions precedent, any one
or more of which may be waived in whole or in part by the Company, which waiver shall be
at the sole discretion of the Company: 

	6.1  	Representations
and Warranties. The representations and warranties made by the Purchaser in this
Agreement shall have been true and correct when made, and shall be true and correct in
all material respects as of the Closing, as if made on the date of the Closing. 

	6.2  	Covenants.
All covenants, agreements, and conditions contained in this Agreement to be performed or
complied with by the Purchaser prior the Closing shall have been performed or complied
with by the Purchaser prior to or at the Closing. 

	6.3  	Consents,
etc. The Purchaser and the Company shall have secured all permits, consents and
authorizations, including, without limitations, approval of its corporate organs that
shall be reasonably necessary or required lawfully for the Company to consummate this
Agreement and to issue the Capital Note and the Shares issued upon its conversion to be
purchased by the Purchaser at the Closing. 

	6.4  	Delivery
of Documents. All of the documents to be delivered by the Purchaser, and all actions
to be performed or concluded pursuant to Section 2 by the Purchaser, shall be in a form
and substance reasonably satisfactory to the Company and its counsel. 

	6.5  	Antitrust
Approval. To the extent required under law, the unconditional approval of the
Comptroller to the consummation of the Closing under this Agreement has been received. 

	7  	Covenants.  

	7.1  	Ordinary
Course. Between the date hereof and the Closing Date, the Company will operate in the
ordinary course of business as now being conducted and as currently proposed to be
conducted , except that the Company may perform its obligations pursuant to the Agreement
and Plan of Merger and Reorganization entered into as of May 19, 2008, by and among the
Company, Armstrong Acquisition Corp., a wholly owned subsidiary of the Company, and Jazz
Technologies, Inc., and the transactions pursuant thereto, including with respect to the
closing of the merger transaction. 

	7.2  	Dividends.
Between the date hereof and the Closing Date, the Company will not declare, make or
pay any dividend or other distribution. 

	7.3  	Actions
inconsistent with this Agreement. Between the date hereof and the Closing Date,
neither the Purchaser nor the Company will take any action inconsistent with this
Agreement. For the avoidance of any doubt, nothing herein shall require the Purchaser to
take or refrain from taking any action as a shareholder or investor in the Company. 

	7.4  	Fees.
The Company shall pay the Purchaser a fee of US$100,000 on January 1, 2009 and an
additional fee of US$100,000 on April 1, 2009. 

	8  	Miscellaneous.  

	8.1  	Further
Assurances. Each of the parties hereto shall perform such further acts and execute
such further documents as may reasonably be necessary to carry out and give full effect
to the provisions of this Agreement and the intentions of the parties as reflected
thereby. 

	8.2  	Governing
Law; Jurisdiction. This Agreement will be governed by the laws of the State of Israel
without regard to conflicts of law principles. Any suit, action or proceeding seeking to
enforce any provision of, or based on any matter arising out of or in connection with,
this Agreement or the transactions contemplated hereby may be brought in the Courts of
Tel Aviv-Jaffa, and each of the parties hereby consents to the jurisdiction of such
courts in any such suit, action or proceeding and irrevocably waives, to the fullest
extent permitted by law, any objection which it may now or hereafter have to the laying
of the venue of any such suit, action or proceeding in any such court or that any such
suit, action or proceeding which is brought in any such court has been brought in an
inconvenient forum. 

	8.3  	Successors
and Assigns; Assignment. Except as otherwise expressly limited herein, the provisions
hereof shall inure to the benefit of, and be binding upon, the successors, assigns,
heirs, executors, and administrators of the parties hereto. This Agreement may not be
assigned by any party without the prior written consent of the other party hereto. 

	8.4  	Expenses.
Each party to this agreement shall bear its own expenses and costs with respect to this
agreement and the transactions contemplated thereby. 

	8.5  	Entire
Agreement; Amendment and Waiver. This Agreement and the Schedules hereto constitute
the full and entire understanding and agreement between the parties with regard to the
subject matters hereof and thereof. Any term of this Agreement may be amended and the
observance of any term hereof may be waived (either prospectively or retroactively and
either generally or in a particular instance) only with the written consent of the
parties to this Agreement. 

	8.6  	Notices,
etc. All notices and other communications required or permitted hereunder to be given
to a party to this Agreement shall be in writing and shall be faxed or mailed by
registered or certified mail, postage prepaid, or otherwise delivered by hand or by
messenger, addressed to such party’s address as set forth below or at such other
address as the party shall have furnished to each other party in writing in accordance
with this provision: 

	 		
	 		
	 		
	 		
	 		
	 	If to the Purchaser:	Israel Corporation Ltd.
	 	 	Millennium Tower,
	 	 	23 Aranha St.
	 	 	Tel Aviv Israel 61070
	 	 	Fax: 972-3-684-4574
	 	 	Attn: Chief Financial Officer
	 	 
	 	with a copy to
	 	(which shall not
	 	constitute notice):	Gornitzky & Co.
	 	 	45 Rothschild Blvd.,
	 	 	Tel-Aviv 65784 Israel
	 	 	Fax: 972-3-560-6555
	 	 	Attn: Adv. Zvi Ephrat
	 	 
	 	if to the Company:	Tower Semiconductor Ltd.
	 	 	Ramat Gavriel Industrial Area
	 	 	P.O. Box 619
	 	 	Migdal Haemek Israel 23105
	 	 	Fax. 972-4-6047242
	 	 	Attn: Oren Shirazi, Acting CFO
	 	 
	 	with a copy to
	 	(which shall not
	 	constitute notice):	Yigal Arnon & Co.
	 	 	1 Azrieli Center
	 	 	46th Floor 
	 	 	Tel Aviv, Israel, 67021
	 	 	Fax: 03-608-7714
	 	 	Attn: David Schapiro, Adv.

	 	        or
such other address with respect to a party as such party shall notify each other party in
writing as above provided. Any notice sent in accordance with this Section 8.6 shall be
effective (i) if mailed, five (5) business days after mailing, (ii) if sent by messenger,
upon delivery, and (iii) if sent via facsimile, one (1) business day following
transmission and electronic confirmation of receipt.  

	8.7  	Delays
or Omissions. No delay or omission to exercise any right, power, or remedy accruing
to any party upon any breach or default under this Agreement, shall be deemed a waiver of
any other breach or default theretofore or thereafter occurring. Any waiver, permit,
consent, or approval of any kind or character on the part of any party of any breach or
default under this Agreement, or any waiver on the part of any party of any provisions or
conditions of this Agreement, must be in writing and shall be effective only to the
extent specifically set forth in such writing. Unless provided otherwise herein, all
remedies, either under this Agreement or by law or otherwise afforded to any of the
parties, shall be cumulative and not alternative. 

	8.8  	Severability.
If any provision of this Agreement is held by a court of competent jurisdiction to be
unenforceable under applicable law, then such provision shall be excluded from this
Agreement and the remainder of this Agreement shall be interpreted as if such provision
were so excluded and shall be enforceable in accordance with its terms; provided,
however, that in such event this Agreement shall be interpreted so as to give effect, to
the greatest extent consistent with and permitted by applicable law, to the meaning and
intention of the excluded provision as determined by such court of competent
jurisdiction. 

	8.9  	Counterparts.
This Agreement may be executed in any number of counterparts (including facsimile
counterparts), each of which shall be deemed an original, and all of which together shall
constitute one and the same instrument. 

	8.10  	Headings.
The headings of the sections and paragraphs of this Agreement are inserted for
convenience only and shall not be deemed to constitute part of this Agreement or to
affect the construction hereof. 

[Signature Page to
Securities Purchase Agreement] 

        IN
WITNESS WHEREOF, each of the parties has signed this Agreement as of the date first
hereinabove set forth. 

	 	TOWER SEMICONDUCTOR LTD. 	ISRAEL CORPORATION LTD. 

	 	By:__________________________

Name:________________________

Title:_________________________	By:__________________________

Name:________________________

Title:_________________________

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