Document:

EXHBIT 10.40

                                 LEASE AGREEMENT

1.   PARTIES

1.1  THE LESSOR:

Mr. Gustavo Eduardo Bazan, D.N.I. Number 23.328.079, with domicile in Calle
Rivadavia 8348, 23rd floor, Federal Capital, in his situation as LESSOR of the
spaces whose location is registered in the respective annexes added to this
document, and through the lease agreement that is signed with the proprietors of
these spaces. Below it will be called the LESSOR.

1.2  THE LESSEE:

The firm Ituran de Argentina S.A. domiciled in Marcelo T. Alvear St. 925, 5th
floor B, Federal Capital, represented by Mr. Avi Anais, Israeli passport No.
9,027,867, in his position as President of the firm. In what follows, he is
called the LESSEE. The signers declare under oath that the authorization to sign
this document in representation that is invoked, and the authenticity and term
of the instruments that guarantee it, copies of which are added to this
document.

2.   PURPOSE:

2.1 THE LESSOR delivers in lease to THE LESSEE, for installing irradiating
systems and radio-electric equipment, the spaces located in the terraces of the
buildings registered in the attached annexes. They are governed by the terms and
conditions that are detailed below: Space requirements to be provided by THE
LESSOR:

a) A space in the Shelter that is property of THE LESSOR (the Space in what
follows), that is necessary to lodge the items mentioned in each one of the
annexes.

b) A space in the structure of the pole that is the property of THE LESSOR for
installing an irradiant system that is property of THE LESSEE. In the spaces,
THE LESSEE will install the following equipment (the Equipment below). The space
mentioned in point (a): will be used to locate radio-electric equipment and
their accessories according to the details which appear in each annex. The space
mentioned in point (b) will be used to install transmitting antennas and

[2 sets of handwritten initials]

and receivers with their respective coaxial cables up to the shelter located no
more than 15 meters from the support structure of the antennas according to the
details that appear in each annex.

c) At the time of delivery of each building THE LESSOR must deliver a report on
the installation in which there figured all the details that THE LESSEE
considers necessary.

2.2 Likewise, THE LESSEE will install data and telephone lines and may request
THE LESSOR for the installation, and the Space of the pto (a), of air
conditioning equipment intended to maintain the working temperature of the
radio-electric equipment installed there within the range specified by THE
LESSEE.

2.3 THE LESSOR expressly declares to be authorized to sublet to THE LESSEE the
spaces mentioned in the various annexes, and to allow the installation of
support structures of antennas, shelter, radio-electric equipment, air
conditioning equipment, and data and telephone lines in accordance with the
terms of this Agreement.

3 - PERIOD

The period of the term of this agreement will be 5 (five) years in those spaces
where THE LESSEE has a period unless it will be guaranteed at least a period of
3 (three) years. The beginning and end of the period of each space will be
specified in each annex attached. THE LESSEE is granted the ability to extend
for another similar period, after notification made by authentic means with
advance notice of no more than thirty days of the expiration of each period.

4 - PRICE

4.1 The price of lease will be entered into the corresponding annexes in
relation to each space rented. The price that is stipulated will not include the
VAT, and will be paid for the first 6 (six) months from the 1st to the 10th of
each month, after the period mentioned has passed, the price will be paid from
the 1st to the 5th of each month in the domicile that is established that THE
LESSEE has established after reception with an advance notice of 5 (five) days
in the domicile set by THE LESSEE from the corresponding original invoices.
The payment of each space will be governed by the following guidelines:
With relation to the spaces already rented by THE LESSOR and put at the disposal
of THE LESSEE as in those others that THE LESSEE has not already rented,

[2 sets of handwritten initials]

the price will be paid starting with the signature of the corresponding annexes.

4.2 THE LESSEE does not have to pay any sum beyond that provided for in each
annex. For such reasons it will not be obliged to pay: a) expenses, either
ordinary or extraordinary, b) establishment of the reserve fund, c) common
payments of the consortium or all or any of the proprietors, d) co-participation
in the expenses of the consortium of any type, nor, e) of taxes of any kind that
correspond to the consortium or the proprietors of their units.

4.3 On the assumption that THE LESSOR, in renewing its lease agreement with the
proprietors of the spaces, should obtain any variation in the prices, it will
notify THE LESSEE of the new price with 2 (two) months in advance of the
expiration of the corresponding annex. If THE LESSEE does not accept the new
price, THE LESSOR will give a period of 3 (three) months to THE LESSEE to find a
new site, maintaining the price fixed in the corresponding annex during those 3
months.

5.   DELAY

The expiration of the periods established in this agreement is produced by law
automatically, just by the passage of time. On the assumption of delay in
payment of rent, the sum owed will receive interest for every day of delay equal
to the amount set by the Argentina National Bank for its discount operations
(active rate), which will be paid at the terms and form established in the
fourth paragraph of this document.

6 - OBLIGATIONS OF THE LESSOR

6.1 To allow THE LESSEE to carry out repairs on the equipment in the spaces that
are referred to in each of the annexes.

6.2 To facilitate the unrestricted access of personnel named by THE LESSEE to
the spaces that are mentioned in each of the annexes. This access will not have
limits of day or time, during the entire year, for installation, removal,
maintenance or repair of the equipment, and the time for access may not exceed
more than 12 (twelve) hours requested.

6.3 If in the spaces installed radio-electric equipment is found, or new
equipment is to be installed, THE LESSEE must deliver all technical
documentation that THE LESSOR requests in order to verify that they do not
interfere with the operation of the

[2 sets of handwritten initials]

equipment of THE LESSEE. The installation of new equipment may be carried out
after THE LESSOR proves that there will not be interference generated by it.

6.4 Pay for all the taxes and contributions that bear on the space and in
particular, the cost of conservation of the building in general and repair of
damage that the terrace may undergo (as such they are not attributable to THE
LESSEE) for the purpose of allowing THE LESSEE its normal and pacific use and
enjoyment.

6.5 Guarantee for the spaces the same control and watchfulness that the rest of
the buildings where they are located receives.

6.6 THE LESSOR states that the support structures of antennas and shelters
mentioned in each one of the annexes meets the standards in effect as to
materials used, construction, assembly, foundations, anchoring and stability.
Any modification to the standards that are in effect must be met in the periods
established by the competent authority. In case the regulatory authority
requests THE LESSOR to provide the estimates of the structure, THE LESSOR will
make them available to THE LESSEE to be presented within the periods fixed by
the competent authority. THE LESSOR promises to carry out the preventative and
corrective maintenance for the purpose of assuring the perfect condition of
installation and safety of the tower in fulfilling the existing standards as
being day and night beacons, installation of lightening rods and descent to the
ground. The preceding enumeration is simply by example and does not in any way
exhaust the fulfillment of THE LESSOR'S obligation with respect to the perfect
condition of installation and safety of the tower. THE LESSOR assumes full
responsibility for the fulfillment of the tasks of installation and safety
mentioned above.

6.7 THE LESSOR will be responsible for all damages caused to third parties or to
THE LESSEE by accidents produced in the rented spaces and/or for the equipment
that is the property of THE LESSOR.

6.8 THE LESSOR will contract insurance that will cover its civil liability to
third parties, specified in clause 6.7 above, and will maintain THE LESSEE on
damage for any claim for the damages mentioned during the period of this
agreement.

6.9 In case THE LESSOR wishes to cancel any of the leases, that

[2 sets of handwritten initials]

are annexed to this agreement, it must reliably advise THE LESSEE with a ninety
day advance notice, offering it a site of similar characteristics being canceled
in no more than thirty (30) days of the date of cancellation of the lease,
including the costs of moving and installation at the expense of THE LESSOR. On
the assumption that THE LESSEE is deprived of its lease rights with relation to
any of the sites annexed to this agreement, and THE LESSOR cannot find a given
site with the obligation referred to this clause, THE LESSEE will have the right
to claim damages caused to it as a consequence of this non-fulfillment, the
amount to be claimed will be equivalent to 3 months rent.

7 - OBLIGATIONS OF THE LESSEE

7.1 Pay the taxes and contributions that affect its activity.

7.2 THE LESSEE will have free access to the use of electrical energy necessary
for the operation of the installed equipment, the consumption of it being at its
exclusive costs. For such a purpose, THE LESSOR will provide THE LESSEE an
exclusive meter for its equipment by means of which the readings can be obtained
for the payment of the energy consumed.

7.3 At the end of the agreement, THE LESSEE must remove the equipment with the
aid of THE LESSOR, leaving the spaces in the same condition that they were found
before its occupation, except for deterioration produced by the passage of time,
and good use. For the case of removing the antenna, THE LESSEE will pay the same
price that it will pay at the beginning of the agreement for the installation.

8    CONDITION SUBSEQUENT

Both parties agree to base this agreement on the term of the authorization
granted to THE LESSEE to operate licenses and/or authorizations. If they are
denied or revoked, this agreement will be cancelled, without this circumstance
generating right to any claim or indemnity for any of the parties.

9    RESCISSION

9.1 THE LESSEE may, after 18 (eighteen) months after the signature of this
agreement and without invoking any cause rescind this agreement, with relation
to all of the spaces or part of them, without penalty or any indemnity. For the
exercise of this authority, THE LESSEE must notify such a circumstance by
reliable means

[2 sets of handwritten initials]

to THE LESSOR with an advance of no less than thirty days.

9.2 The failure to pay the rent during the following months, will give THE
LESSOR the right to cancel this agreement.

10   OBLIGATION IN PASSING

THE LESSOR expressly authorizes all the obligations that may reasonably be
required so that THE LESSEE may carry out and have installed in the spaces of
each of the annexes the services that it needs as well as in order to be able to
make normal use of the spaces mentioned in each of the annexes according to the
needs and uses that the equipment requires. There is accepted from this last the
support structure of the antenna. If as a consequence of the addition of new
items that are the property of third parties authorized by THE LESSEE, these
affect the minimum requirements necessary for the maintenance of the equipment,
THE LESSEE may require improvements in the spaces, the costs of these
improvements being at the LESSOR'S expense. In case THE LESSEE needs to gain
access to the spaces mentioned in the annex, it must advise THE LESSOR and it
will facilitate the access to them in a maximum of a period of 12 (twelve) hours
after being notified.

11.  USE OF DANGEROUS SUBSTANCES

THE LESSEE declares that it will not deposit, use or generate radioactive
material, substances or dangerous waste in the spaces. THE LESSOR, for its part,
affirms that up until now in the spaces there has not been deposited use or
generated radioactive material substances or dangerous waste.

12.  JURISDICTION AND DOMICILES

For all legal purposes arising from this agreement, the parties agree to submit
to the jurisdiction of the Ordinary Courts of the City of Buenos Aires and
establish domiciles in those locations stated at the heading, where they will
hold as valid all the notifications up to the establishment of special
domiciles.

13.  STAMP TAX

If the stamp tax must be paid, it must be paid by THE LESSOR and THE LESSEE in
equal parts.

In proof of agreement, 2 (two) copies of the same purport and one purpose are
signed in the City of Buenos Aires on the 7th day of the month of September of
2001.

[handwritten signatures]

ANNEX 1:
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1) This is added to the copy of the agreement between THE LESSOR and the
Consortium of the Tucuman 540 site - Federal Capital.

2) In the Space of the Building that is the property of THE LESSOR there will be
installed:

     a) A 19" rack property of THE LESSEE,

     b) An antenna property of THE LESSEE,

3) The price of the lease is established at $US 850.-

4) The term of the lease will be from the 20th of June, 2001 to the 20th of
June, 2006.

[handwritten signature]                         [handwritten signature]

[illegible word] President              Gustavo E. Bazan

[illegible words]                       GENERAL MANAGER

ANNEX II:
---------

1) This is added to the copy of the agreement between THE LESSOR and the
Consortium of the Ciudad de La Paz 2211 site - Federal Capital.

2) In the Space of the Building that is the property of THE LESSOR there will be
installed:

     a) A 19" rack property of THE LESSEE,

     b) An antenna property of THE LESSEE,

3) The price of the lease is established at $US 700.-

4) The term of the lease will be from the August 22, 2001 until August 22, 2006.

[handwritten signature]                         [handwritten signature]

[illegible word] President              Gustavo E. Bazan

[illegible words]                       GENERAL MANAGER

ANNEX III:
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1) This is added to the copy of the agreement between THE LESSOR and the
Consortium of the Rivadavia 8348 site - Federal Capital.

2) In the Space of the Building that is the property of THE LESSOR where there
will be installed:

     a) A rack of 19" property of THE LESSEE which will be operated together
with the transmitter provided by THE LESSOR located in the same shelter.

     b) Three antennas property of THE LESSOR.

3) The price of the lease is established at $US 600.-

4) The term of the lease will be from the June 19, 2001 to the June 19, 2006.

[handwritten signature]                         [handwritten signature]

[illegible word] President              Gustavo E. Bazan

[illegible words]                       GENERAL MANAGER

ANNEX IV:
---------

1) This is added to the copy of the agreement between THE LESSOR and the
Consortium of the Salguero 2154 site - San Martin - Province of Buenos Aires.

2) In the Space of the Building that is the property of THE LESSOR there will be
installed:

     a) A rack of 19" property of THE LESSEE.

     b) An antenna property of THE LESSOR.

3) The price of the lease is established at $US 600.-

4) The term of the lease will be from the June 19, 2001 to the June 19, 2006.

[handwritten signature]                         [2 sets of handwritten initials]

[illegible word] President              Gustavo E. Bazan

[illegible words]                       GENERAL MANAGER

ANNEX V:
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1) This is added to the copy of the agreement between THE LESSOR and the
Consortium of the site Av. Mitre 4668- San Miguel - Province of Buenos Aires.

2) In the Space of the Building that is the property of THE LESSOR there will be
installed:

     a) A rack of 19" property of THE LESSEE.

     b) An antenna property of THE LESSOR.

3) The price of the lease is established at $US 600.-

4) The term of the lease will be from July 17, 2001 to July 17, 2006.

[handwritten signature]                         [handwritten signature]

[illegible word] President              Gustavo E. Bazan

[illegible words]                       GENERAL MANAGER

ANNEX VI:
---------

1) This is added to the copy of the agreement between THE LESSOR and the
Consortium of the Rivadavia 313 site - Quilmes - Province of Buenos Aires.

2) In the Space of the Building that is the property of THE LESSOR there will be
installed:

     a) A rack of 19" property of THE LESSEE.

     b) An antenna property of THE LESSOR.

3) The price of the lease is established at $US 600.-

4) The term of the lease will be from the August 17, 2001 to the August 17,
2006.

[handwritten signature]                         [handwritten signature]

[illegible word] President              Gustavo E. Bazan

[illegible words]                       GENERAL MANAGER

ANNEX VII:
----------

1) This is added to the copy of the agreement between THE LESSOR and the
Consortium of the Santamarina 538 site - Mte. Grande -- Province of Buenos
Aires.

2) In the Space of the Building that is the property of THE LESSOR there will be
installed:

     a) A rack of 19" property of THE LESSEE, which will operate together with
the transmitter provided by THE LESSOR located in the same shelter.

     b) An antenna property of THE LESSOR.

3) The price of the lease is established at $US 600.-

4) The term of the lease will be from July 23, 2001 to July 23, 2006.

[handwritten signature]                         [handwritten signature]

[illegible word] President              Gustavo E. Bazan

[illegible words]                       GENERAL MANAGER

ANNEX VIII:
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1) This is added to the copy of the agreement between THE LESSOR and the
Consortium of the Chacabuco 534 site - Pilar - Province of Buenos Aires.

2) In the Space of the Building that is the property of THE LESSOR there will be
installed:

     a) A rack of 19" property of THE LESSEE.

     b) An antenna property of THE LESSOR.

3) The price of the lease is established at $US 650.-

4) The term of the lease will be from the October 10, 2001 to October 10, 2006.

[handwritten signature]                         [handwritten signature]

[illegible word] President              Gustavo E. Bazan

[illegible words]                       GENERAL MANAGER

ANNEX IX:
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1) This is added to the copy of the agreement between THE LESSOR and the
Consortium of the Panamericana and Constituents, Barrio Malvinas Argentinas,
Tower 6 (FONAVI) -Tortuguitas - Province of Buenos Aires.

2) In the Space of the Building that is the property of THE LESSOR there will be
installed:

     a) A rack of 19" property of THE LESSEE.

     b) An antenna property of THE LESSOR.

3) The price of the lease is established at $US 600.-

4) The term of the lease will be from the August 29, 2001 to August 29, 2006.

[handwritten signature]                         [handwritten signature]

[illegible word] President              Gustavo E. Bazan

[illegible words]                       GENERAL MANAGER

ANNEX X:
--------

1) This is added to the copy of the agreement between THE LESSOR and the
Consortium of the Hipolito Yrigoyen site No. 577 - Belen de Escobar - Province
of Buenos Aires.

2) In the Space of the Building that is the property of THE LESSOR there will be
installed:

     a) A rack of 19" property of THE LESSEE.

     b) An antenna property of THE LESSOR.

3) The price of the lease is established at $US 600.- 4) The term of the lease
will be from the July 16, 2001 to July 16, 2006.

[handwritten signature]                         [handwritten signature]

[illegible word] President              Gustavo E. Bazan

[illegible words]                       GENERAL MANAGER

ANNEX XI:
---------

1) This is added to the copy of the agreement between THE LESSOR and the
Consortium of the Hipolito Yrigoyen 4009 site - Lanus - Province of Buenos
Aires.

2) In the Space of the Building that is the property of THE LESSOR there will be
installed:

     a) A rack of 19" property of THE LESSEE.

     b) An antenna property of THE LESSOR.

3) The price of the lease is established at $US 600.-

4) The term of the lease will be from the September 20, 2001 to September 20,
2006.

[handwritten signature]                         [handwritten signature]

[illegible word] President

[illegible words]

ANNEX XII:
----------

1) This is added to the copy of the agreement between THE LESSOR and the
Consortium of the Heritier - Brrio. Police - Tower K73 site - Merlo - Province
of Buenos Aires.

2) In the Space of the Building that is the property of THE LESSOR there will be
installed:

     a) A rack of 19" property of THE LESSEE.

     b) An antenna property of THE LESSOR.

3) The price of the lease is established at $US 600.-

4) The term of the lease will be from the September 12, 2001 to September 12,
2006.

[handwritten signature]                         [handwritten signature]

[illegible word] President

[illegible words]

ANNEX XIII:
-----------

1) There is added to the copy of the agreement between THE LESSOR and the
Consortium of the Dans Rey 742, site Fcio. Varela - Province of Buenos Aires.

2) In the Space of the Building that is the property of THE LESSOR there will be
installed:

     a) A rack of 19" property of THE LESSEE.

     b) An antenna property of THE LESSOR.

3) The price of the lease is established at $US 600.-

4) The term of the lease will be from the August 21, 2001 to August 12, 2006.

[handwritten signature]                         [handwritten signature]

[illegible word] President

[illegible words]

ANNEX FOURTEEN TO THE AGREEMENT FOR LEASE OF SITES SIGNED FOR ON
SEPTEMBER 7, 2001.

Between Instal Electric with the domicile at Rivadavia 8348, 23rd floor, Federal
Capital, represented in this document by Gustavo Eduardo Bazan, DNI Number
23328079 in his position as President, in the following THE LESSOR, party of the
first part, and for the other Ituran de Argentina, S.A., domiciled in Sucre,
2480, Beccar, Peia of Buenos Aires, represented in this document by Mr. Abraham
Anaias DNI number 93, 897 631 in his position as president of that firm, in what
follows THE LESSEE, they agree to sign this Annex to the lease agreement signed
between the parties on the 7th of September 2001 in accordance with the
following clauses and conditions:

FIRST: There is added to a copy of the lease agreement signed between THE LESSOR
and the consortium of the building located in Calla 10, number 857, the La
Plata, Province of Buenos Aires, that serves as a basis for THE LESSOR to grant
the present sublease in the space rented by it below called "The Space of the
Building".

SECOND: In the space of the building, there will be installed:

a) A rack of 19" property of THE LESSEE, which will operate together with the
transmitter provided by THE LESSOR located within the same shelter.

b) Three antennas, property of THE LESSEE.

THIRD: The price of the lease is established at $US 410 (410 United States
dollars), payable in Argentine pesos taking the rate of the dollar of the BCRA,
a buyer's rate, of the day before the date of payment, the parties agree to
establish to the value of the dollar a ceiling of $1 equal US $3.20 and a floor
of $1 equals $US 3.20, for which in the future for the purposes of calculating
the rent, if the rate of the US dollar increases above the limits stated, the
rent will be paid, as previously fixed in Argentine pesos multiplying its value
expressed in dollars by the ceiling rate and/or the floor assigned to it in this
clause as appropriate. This is left agreed between the parties that in case THE
LESSOR cancels the lease of the site and without prejudice to what is stipulated
in Clause 6.9 of the principal text of the agreement, it must assure the
continuity of the operation of the transmitter during the time that the move to
the new site takes place. In case the LESSOR has to move the site, the cost of
the move will be for THE LESSOR'S account.

FOURTH: On the assumption that THE LESSOR will sublease to other third parties,
the space of the building and/or the support structure of the antenna, THE
LESSEE will receive a discount in the price of the lease of 5%.

FIFTH: The duration of the lease corresponding to this annex, will be from the
1st of August 2003 until the 31st of July 2008. In proof of agreement, two
copies signed of the same meaning and for one purpose only in the City of Buenos
Aires on the 31st of July 2003.

[2 signatures]EXHIBIT 10.41

To:

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                        LETTER OF INDEMNITY AND EXEMPTION

1.     GENERAL

       1.1    We hereby inform you that in accordance with the decision of the
              Audit Committee and the Board of Directors of Ituran Location and
              Control Ltd ("THE COMPANY") dated August 24, 2005, and pursuant to
              the decision of the Company's General Meeting dated September 15,
              2005 (Hereinafter: "THE DETERMINING DATE"), it was decided to
              exempt the Company's functionaries, including functionaries who
              are controlling shareholders in the Company (Hereinafter:
              "FUNCTIONARIES") from responsibility due to breach of duty of care
              towards the Company as detailed in this letter of indemnity and
              exemption (Hereinafter: "THIS LETTER") as follows, and to pledge
              to the functionaries that the Company shall indemnify each of them
              of any liability or expense, as detailed in this letter below,
              which may be imposed upon him due to any action he has done ex
              officio, by virtue of his being a functionary in the Company.

       1.2    The terms which have not been defined in this Letter shall be
              interpreted as in the Companies Law, 5759 - 1999 (hereinafter:
              "COMPANIES LAW"), save if the context of the matter shall require
              otherwise.

2.     EXEMPTION FROM RESPONSIBILITY

       The Company exempts you in advance, subject to the provisions of any law,
       of any responsibility thereto, for any damage caused and/or which may be
       caused by you to the Company due to breach of duty of care for which you
       are obligated thereto (including damage as aforesaid caused due to
       actions carried out before the date of signing this Letter) save the
       breach of distributive care.

3.     COMMITMENT TO INDEMNIFY

       Subject to the provisions hereof and the provisions of any law, the
       Company hereby commits itself toward you to indemnify you of any
       liability and/or expense as detailed in paragraph 4.1 below, which may be
       imposed on you due to any action you have carried out and/or may carry
       out in the Company and/or in a subsidiary and/or in an affiliated company
       (as defined in the Securities Law 5728-1968) and/or in a related company
       (hereinafter in this Letter, subsidiary and/or affiliated company and/or
       related company: "RELATED COMPANY"), including actions carried out by you
       before the date of signing this Letter, by virtue of your being a
       functionary in the Company, and on condition that said actions were
       directly and/or indirectly related to one (or more) of the types of
       events specified in paragraph 6 below.

4. THE LIABILITY AND EXPENSES TO WHICH INDEMNITY SHALL APPLY

       4.1 The indemnity pursuant hereto shall apply only due to liability
and/or expenses as follows:

              4.1.1 Financial liability imposed on you in favor of another
                    person in accordance with a verdict, including a verdict
                    given in conciliation or an arbitration award authorized by
                    a Court of Law;

              4.1.2 Reasonable litigation expenses, including attorney's fees,
                    which you have expended or for which you have been charged
                    due to an interrogation or a proceeding that has been
                    conducted against you by an authority competent to wage an
                    interrogation or a proceeding, and which has ended without
                    the filing of an indictment against you and without a
                    financial liability having been imposed on you as an
                    alternative to a criminal proceeding or that ended without
                    the filing of an indictment against you but with the
                    imposition of a financial liability as an alternative to a
                    criminal proceeding in an offense which does not require the
                    substantiation of criminal intent.

                    For the purpose of this paragraph - the ending of a
                    proceeding without the filing of an indictment in a matter
                    in which a criminal investigation has been opened -
                    signifies the closing of the case

                    pursuant to section 62 of the Criminal Procedure Law
                    [Consolidated Version], 5742-1982 ("the CRIMINAL PROCEDURE
                    LAW"), or a delay of proceedings by the Legal Advisor to the
                    Government pursuant to section 231 of the Criminal Procedure
                    Law.

                    "FINANCIAL ALTERNATIVE AS AN ALTERNATIVE TO CRIMINAL
                    PROCEEDING" - Financial liability imposed in accordance with
                    law as an alternative to a criminal proceeding, including an
                    administrative penalty according to the Administrative
                    Offenses Law 5746-1985, fine for an offense that has been
                    determined as a fineable offense in accordance with the
                    provisions of the Criminal Procedure Law, Financial Sanction
                    or Indemnity.

                    Reasonable litigation expenses, including attorney's fees,
                    which you have expended or been charged with by a court of
                    law, in a proceeding filed by the Company or on the
                    Company's behalf or by another person, or in a criminal
                    indictment from which you have been acquitted or in a
                    criminal indictment in which you have been convicted of an
                    offense which does not require the substantiation of
                    criminal intent.

       4.2    It is hereby clarified that the indemnity as well as the exemption
              from liability pursuant to this Letter shall not apply in the
              following cases:

              4.2.1 Breach of fiduciary duty, save in the matter of indemnity
                    and insurance due to breach of fiduciary duty in cases in
                    which you have acted in good faith and for which you had a
                    reasonable basis to assume that the act would not compromise
                    the Company's interest;

              4.2.2 Breach of the duty of care made intentionally or
                    impulsively, save if made in negligence only;

              4.2.3 Acting with the intent of gaining unlawful personal profit;

              4.2.4 A fine or redemption imposed upon you.

       4.3    In cases in which you shall receive compensation from the
              insurance company of the Company's insurance policy for the
              Company's functionaries (hereinafter: "THE INSURER"), on account
              of the matter subject

              of the indemnity, the indemnity given by the Company in the amount
              of the difference between the amount of financial liability
              imposed on the functionary and/or the litigation expenses which
              the functionary has expended or been charged with, as stated in
              paragraph 4.1 above, and the amount received from the insurer on
              account of that same matter, and on condition that the indemnity
              amount for which the Company shall be charged as aforesaid shall
              not be greater than the maximum indemnity amount (as defined
              below).

5.     MAXIMUM INDEMNITY AMOUNT

       5.1    The indemnity amount that the Company shall pay (including amounts
              which shall be received by the functionaries from insurance
              companies, if such shall be received, in the frame of insurances
              which the company has acquired, if it has acquired such) for all
              the functionaries, cumulatively, pursuant to letters of indemnity
              and exemption for functionaries shall not exceed a total amount
              equal to the rate of 25% of the Company's equity (consolidated) in
              accordance with the Company's last financial reports published
              before the granting of the indemnity payment in practice
              (hereinafter: "the MAXIMUM INDEMNITY AMOUNT"). The maximum
              indemnity amount has been determined by the Company's Board of
              Directors as reasonable under the circumstances.

       5.2    Should and as far as the total of all the indemnity amounts that
              the Company shall be required to pay shall exceed the maximum
              indemnity amount or the balance of the maximum indemnity amount
              (as it shall be at that time), the maximum indemnity amount or the
              balance thereof, as applicable, shall be divided between the
              functionaries who shall be entitled to indemnity, in a manner that
              the indemnity amount which shall be received by each of the
              functionaries, in practice, shall be calculated pursuant to the
              ratio between the indemnity amount which shall be forthcoming to
              each of the functionaries on account of the liabilities and/or the
              expenses which each shall be obliged to bear as a result of the
              legal proceeding and the indemnity amount which shall be
              forthcoming to all

              the said functionaries on account of liabilities and/or expenses
              which they shall be obliged to bear as a result of the legal
              proceeding, cumulatively on account of that same event.

6. THE EVENTS TO WHICH THE INDEMNITY SHALL APPLY

       The indemnity in accordance with this letter of indemnity shall apply to
       a liability and/or an expense as aforesaid, which stem from one (or more)
       of the events detailed below, which have been determined by the Board of
       Directors as anticipated in view of the Company's actual activities at
       the time of providing the commitment:

       6.1    A proposal and/or issue of the Company's equities and/or those of
              a related company in Israel and/or abroad to the public and/or to
              individuals, pursuant to a forecast and/or a private placement,
              including the details which shall be included in the aforesaid
              executable instruments;

       6.2    Actions and/or reports stemming from the Company's and/or a
              related company's being and/or should the Company and/or a related
              company be in future a public company the shares of which shall be
              issued to the public and shall be traded in the Israeli Stock
              Exchange or in a stock exchange abroad;

       6.3    Actions and/or decisions related to the making of investments in
              the company and/or in subsidiaries and/or in related companies
              and/or for the acquisition of properties, including the
              acquisition of companies and/or businesses and/or investments in
              companies and/or investment of funds in traded equities and/or in
              any other form, and/or the sale of assets and/or sale of holdings
              in related companies;

       6.4    Events related to the terms of employment of employees and
              employer-employee relations, including and without derogating from
              the promotion of employees, handling of pension arrangements,
              insurance funds, options and other benefits to the Company's
              employees and/or those of a related company;

       6.5    Decisions and/or actions related to the Company's engagements
              and/or those of a related company with others, and/or between
              themselves in the frame of the Company's ongoing business
              (including with clients, suppliers, contractors);

       6.6    Actions and/or decisions designated in this paragraph 6, connected
              with related companies, including decisions and/or actions as
              functionaries in the Company and/or in related companies;

       6.7    Actions and/or decisions connected with the distribution of
              dividends in the Company and/or in a related company and/or the
              acquisition of the Company's shares;

       6.8    An action and/or a decision connected with the provision of a
              statement of opinion in a proposal for acquisition or any other
              action connected with and/or related to a proposal for acquisition
              in the company and/or a related company;

       6.9    An action and/or a decision connected with a change in the
              Company's structure and or that of a related company or the
              reorganization or any decision with respect thereof, including,
              but without derogating from the generality of the aforesaid, the
              merger, splitting, change in the Company's capital, the
              dissolution of companies or their sale, allocation or division;

       6.10   Any legal proceeding in Israel or abroad, in matters that are
              connected, either directly or indirectly, to trade restrictions
              and including binding arrangements, mergers and monopolies in the
              Company and/or in a related company;

       6.11   Any action which has brought  about a default in carrying out
              proper insurance arrangements by the Company;

       6.12   An action and/or a decision connected with the approval of
              transactions with functionaries and/or with a controlling
              shareholder in the Company and/or in a related company;

       6.13   Any action which has caused damage including damage to property
              including the loss of its use and which is connected to the
              actions designated in this paragraph and/or to the Company's
              products, or those of

              its subsidiaries and/or related companies or to other activities
              in the frame of the Company's ongoing business or that of related
              companies.

7.       DEALING WITH THE SUIT

         In any case in which you will be entitled to compensation in accordance
         with this statement, the following instructions will apply:

         7.1    You will notify the company in writing of any legal procedure
                taken against you and any chance and/or threat that a legal
                procedure will be taken against you and circumstances brought to
                your knowledge that may lead to a legal procedure against you
                (hereinafter: "THE PROCEDURE"), this as soon as possible to the
                time it becomes known to you, and you will transfer without
                delay to the company, or to whoever the company decides, a copy
                of any document regarding the procedure.

         7.2    You will fully cooperate with the company and with anyone it
                decides, including the insurer, and you will transfer any
                information required regarding the procedure and you will follow
                the rest of the instructions of the insurance policy of the
                employees of the company (at the time) regarding the defense
                from the procedure.

         7.3    The company will be entitled to take upon itself your defense in
                the procedure and to transfer the defense in the case to a
                lawyer to be determined by the company, according to its
                judgment, and while taking into consideration the company's
                obligations according to the policy and the option to appoint a
                lawyer on behalf of the insurer (hereinafter: "the company's
                advocate").

         7.4    Despite the mentioned in section 7.3 above, you will be entitled
                to object to the representation by the company's advocate due to
                reasonable reasons and/or under circumstances that in your
                opinion and/or the opinion of the company's advocate there is a
                conflict of interests between your defense and the defense of
                the company.

         7.5    If within 14 days from accepting the notice as mentioned in
                section 7.1 above, the company and the insurer did not take your
                defense upon themselves in the procedure, or if you or the
                company's advocate object to the representation by the company
                according to the mentioned above in section 7.4, you will be
                entitled to appoint an advocate of your choice (hereinafter:
                "the other advocate"), providing the sum of the professional
                fees of the advocate will be approved by the inspection
                committee that will examine the reasonableness. The professional
                fee determined for the company's advocate will be considered a
                reasonable basis in order to examine the fee of the other
                advocate. You will be given the opportunity to appear and argue
                before the committee and it will explain its decision. You will
                de entitled to appeal to the directorate and you will be given
                the opportunity to appear and argue before them. If the entire
                sum of the fee is not approved by the company and you decide not
                to concede the advocate, you will be entitled to receive the
                amount approved, and to pay the rest on your known.

         7.6    Despite the mentioned above in sections 7.4 and 7.5, if the
                policy refers to the matter, the company will act according to
                the instructions of the mentioned policy regarding disagreements
                with the insurer regarding the identity of the advocate
                representing according to the instructions of the policy when
                the case is transferred to the other advocate under the
                circumstances will enable the insurer to be released of its
                obligation or to minimize it and the instructions of the policy
                will override any agreement between you and the company, the
                company will however make every reasonable effort to honor your
                wish.

         7.7    If the company decides to take upon itself the defense in the
                procedure and you did not object under the circumstances
                mentioned in section 7.4 above, you will sign, to the request of
                the company, an authorization authorizing the company (as well
                as its advocate), to deal with the defense in your name and to
                represent you in any thing regarding the defense and the company
                and its advocate will be entitled to deal with the mentioned
                above exclusively (while reporting to you) and will be

                entitled to end the procedure as they see right, this subject to
                mentioned in section 7.15.

         7.8    You will cooperate with the company and its advocate in any
                reasonable way required by them regarding the procedure,
                including signing requests, depositions and any other document.

         7.9    If the company decided to take upon itself to deal with the
                defense in the procedure and you did not object under the
                circumstance mentioned in 7.4, the company will bear the
                expenses up to the maximum compensation (subject to the
                instructions of section 5.2), so that you will not have to pay
                them yourself, and the company will not be liable for any legal
                expenses including the lawyer's professional fees spent during
                the procedure.

         7.10   To your request, the company will pay an advance payment to you
                that you need to cover the reasonable costs you will be due to
                pay and/or are due to pay, including the lawyer fees, this
                according to the estimate made by the company and at the time
                decided by it, compensation to which you are entitled according
                to this statement, providing the total sum will not be more than
                the maximum compensation (subject to the instructions of section
                5.2 above).

         7.11   If the company should pay you any amount from the power of this
                statement, as an advance or otherwise, and it then becomes clear
                that you are to return it, all or part, due to the fact that you
                were not entitled to compensation, for any reason, you will
                return it to the company bearing linkage differences of the
                consumer price index (as it is publicized from time to time by
                the CBS) as well as interest determined by the Finance minister,
                approved by the finance committee of the Knesset, according to
                section 3 (i) of the Tax Law (new version), 1961.

         7.12   If the company paid any amount of this statement, and then the
                obligation due to which the payment was made was cancelled or
                was reduced for any reason, you will write a check to return the
                sum from the plaintiff in the procedure and you will do what
                ever is necessary so that the check is valid and the company can
                cash it, and once you do this you will not be obligated to
                return the sum that was cancelled. If you do not do so- you will
                have to return the sum to the company, or its part, according to
                the matter, plus linkage differences and interest accordingly.

         7.13   If the company's advocate represented you and the company in the
                procedure, and it later became clear that you are not entitled
                to compensation, for any reason, and a disagreement rises
                regarding your obligation to return the trial expenses or the
                amount to be returned, the disagreement will be transferred to
                an arbitrator to be agreed upon according to section 7.14. The
                company will bear the expense of the arbitrary, including lawyer
                fees, unless the arbitrator decides that you used the arbitrary
                not in good faith.

         7.14   In signing this statement, you are obligated to do all you can,
                within the framework of the law, to reduce the amount of
                compensation you are entitled to as much as possible. You will
                not agree to compromise and/or to arbitrary, unless the company
                agreed in advance and in writing, and if it is necessary the
                agreement of the insurer, that it was received. The company will
                not agree to compromise unless the compromise does not expose
                the company to other suits on part of the plaintiff and that the
                agreement will not be considered admission and/or recognizing of
                liability regarding the causes of the procedure. The company
                will bring to the knowledge of the employees the details of the
                agreement. In case there is disagreement between the company and
                employees, regarding if the agreement answers to the
                instructions of this section, it will be brought before an
                arbitrator for a quick decision to be appointed by the company.
                The arbitrator will be appointed within 7 days from the time one
                side demanded arbitrary agreed upon the sides and if there is no

                agreement, the identity of the arbitrator (that will be a former
                district or high court judge) by the head of the lawyer's
                chamber in Israel, unless the arbitrator decides that the
                arbitrary was used not in good faith.

         7.15   The company, as well as the company's advocate, will not agree
                to compromise if the sum is more than the compensation you will
                be entitled to, unless you agree in advance in writing and if
                there is need for the agreement of the insurer- with the
                advanced agreement of the insurer.

         7.16   In case you appeal the decision of a court in the procedure, you
                will have to receive the approval of the company in advance and
                in writing. The company will be entitled to refuse a request as
                mentioned due to relevant considerations regarding the incident.

8.       THE VALIDITY OF THE  OBLIGATION

         8.1    The obligation for compensation will be valid according to this
                statement regarding procedures against you during your work or
                office as well as procedures afterwards, providing they refer to
                actions you took from the time you were appointed to a position
                in the company, while you were in the position or as a result.
                The compensation obligation will stand for your inheritors
                and/or replacements according to law.

         8.2    The company will not be required to pay any sum paid to you for
                yourself or in your place, in any way, in the framework of
                insurance acquired by the company or in the framework of
                insurance acquired by a company controlled by the company or a
                connected company (if you have a position in them) or an
                obligation to any compensation of a company controlled by the
                company or anyone else.

         8.3    This statement does not cancel or concede or reduce any other
                compensation the position holder is entitled to from any other
                source according to any law and/or obligation.

         8.4    This statement does not prevent or limit the company from giving
                you additional special compensations, providing it does not harm
                the compensation obligation of this statement.

         8.5    This statement does not prevent or limit the company from
                increasing the maximum compensation due to the incidents
                regarding the compensation, providing the decision is reached
                according to law.

         8.6    The company's obligations will be interpreted according to this
                statement at length and in order to fulfill them, as permitted
                by law. In case of a contradiction between any instruction in
                this statement and any law that cannot be changed, added to or
                conditioned, the mentioned law will override, but this will not
                reduce the validity of the other instructions in this statement.

         8.7    This statement is not a contract for a third party and cannot be
                conceded.

         8.8    This statement of compensation cancels any other statement of
                compensation, compensation obligation and/or compensation
                agreements granted to you as a bearer of a position in the
                company.

         8.9    It is hereby agreed that the court authorized to deal with
                conflicts and/or disagreements regarding this statement, is the
                Tel Aviv-Jaffa court alone. The laws of the state of Israel
                alone will apply to this statement.

9.       THE PAYMENT

         9.1    To any payment paid to you, VAT will be added, when it applies.

         9.2    Any payment the company has to pay according to this statement
                will be paid within 30 days from the day it was requested.

                                                                   Respectfully,
                                                Ituran Location and Control Ltd.

Date:

CONFIRMATION:
-------------

I hereby confirm that I received the above statement and agree to everything in
it and am obligated to act according to its conditions.

Name:
      -------------------------

Signature:
          ---------------------

Date:
     --------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]