Document:

<PAGE>

                                                                    Exhibit 4.20

                                 EXECUTION COPY

                              AMENDED AND RESTATED
                                 LOAN AGREEMENT

                              DATED 5 DECEMBER 2005

                       MULTICURRENCY TERM CREDIT FACILITY

                                     BETWEEN

                                  ELSCINT LTD.
                                   as Borrower

                                       AND

                               BANK HAPOALIM B.M.
                                     as Bank

                               HERZOG FOX & NEEMAN
                          ASIA HOUSE, 4 WEIZMANN STREET
                                TEL-AVIV, ISRAEL
                                TEL: 03 692 2020
                                FAX: 03 696 6464

<PAGE>

                                        2

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                          <C>
1.  INTERPRETATION........................................................    6
    1.1   DEFINITIONS.....................................................    6
    1.2   CONSTRUCTION....................................................   20

2.  FACILITY..............................................................   22

3.  PURPOSE...............................................................   22

4.  CONDITIONS PRECEDENT..................................................   23
    4.1   DOCUMENTARY CONDITIONS PRECEDENT................................   23
    4.2   FURTHER CONDITIONS PRECEDENT....................................   23

5.  DRAWDOWN..............................................................   24
    5.1   COMMITMENT PERIOD...............................................   24
    5.2   COMPLETION OF DRAWDOWN REQUESTS.................................   24
    5.3   ADVANCE.........................................................   25
    5.4   CONSOLIDATION...................................................   25

6.  REPAYMENT.............................................................   25
    6.1   TRANCHE A REPAYMENT.............................................   25
    6.2   TRANCHE B REPAYMENT.............................................   25
    6.4   TRANCHE D REPAYMENT.............................................   26
    6.5   CURRENCY........................................................   26
    6.6   TRANCHE A REPAYMENT SCHEDULE....................................   26
    6.7   RE-BORROWING....................................................   26

7.  PREPAYMENT AND CANCELLATION...........................................   26
    7.1   VOLUNTARY PREPAYMENT............................................   26
    7.2   VOLUNTARY CANCELLATION..........................................   26
    7.3   MANDATORY PREPAYMENT............................................   26
    7.4   REPAYMENT INTO LOAN ACCOUNT.....................................   28
    7.5   MISCELLANEOUS PROVISIONS........................................   28

8.  INTEREST PERIODS......................................................   28
    8.1   SELECTION.......................................................   28
    8.2   NON-BUSINESS DAYS...............................................   28

9.  INTEREST..............................................................   28
    9.1   INTEREST RATE...................................................   29
    9.2   DUE DATES.......................................................   29
    9.3   DEFAULT INTEREST................................................   29

10. SELECTION OF AVAILABLE CURRENCIES.....................................   29
    10.1  SELECTION.......................................................   29
    10.2  REVOCATION OF CURRENCY..........................................   29

11. AMOUNT OF AVAILABLE CURRENCIES........................................   30
    11.1  DRAWDOWNS.......................................................   30
    11.2  PREPAYMENTS AND REPAYMENTS......................................   30

12. PAYMENTS..............................................................   31
    12.1  PLACE...........................................................   31
    12.2  FUNDS...........................................................   31
</TABLE>

<PAGE>

                                        3

<TABLE>
<S>                                                                          <C>
    12.3  APPLICATION.....................................................   31
    12.4  CURRENCY........................................................   31
    12.5  SET-OFF AND COUNTERCLAIM........................................   31
    12.6  NON-BUSINESS DAYS...............................................   31
    12.7  PARTIAL PAYMENTS................................................   31

13. TAXES.................................................................   32

14. MARKET DISRUPTION.....................................................   32
    14.1  ABSENCE OF QUOTATIONS...........................................   32
    14.2  MARKET DISRUPTION...............................................   32
    14.3  SUSPENSION OF DRAWDOWNS.........................................   33
    14.4  ALTERNATIVE BASIS FOR OUTSTANDING ADVANCES......................   33

15. INCREASED COSTS.......................................................   33
    15.1  INCREASED COSTS.................................................   33
    15.2  EXCEPTIONS......................................................   34

16. ILLEGALITY............................................................   34

17. REPRESENTATIONS AND WARRANTIES........................................   35
    17.1  REPRESENTATIONS AND WARRANTIES..................................   35
    17.2  STATUS..........................................................   35
    17.3  POWERS AND AUTHORITY............................................   35
    17.4  LEGAL VALIDITY..................................................   35
    17.5  NON-CONFLICT....................................................   35
    17.6  NO DEFAULT......................................................   35
    17.7  AUTHORIZATIONS..................................................   36
    17.8  LITIGATION......................................................   36
    17.9  INFORMATION.....................................................   36
    17.10 FINANCIAL STATEMENTS............................................   36
    17.11 COMPLIANCE......................................................   36
    17.12 INSURANCES......................................................   36
    17.13 TITLE AND OWNERSHIP.............................................   37
    17.14 STATUS OF SECURITY..............................................   37
    17.15 PARI PASSU RANKING..............................................   37
    17.16 INDEBTEDNESS....................................................   37
    17.17 TAXES ON PAYMENTS...............................................   37
    17.18 STAMP DUTIES....................................................   37
    17.19 IMMUNITY........................................................   38
    17.20 JURISDICTION/GOVERNING LAW......................................   38
    17.21 MANGO ISRAEL....................................................   38
    17.22 NO OTHER BUSINESS...............................................   38
    17.23 TIMES FOR MAKING REPRESENTATIONS AND WARRANTIES.................   38

18. UNDERTAKINGS..........................................................   39
    18.1  DURATION........................................................   39
    18.2  FINANCIAL INFORMATION...........................................   39
    18.3  OTHER INFORMATION...............................................   40
    18.4  NOTIFICATION OF DEFAULT.........................................   40
    18.5  COMPLIANCE CERTIFICATES.........................................   41
    18.6  AUTHORISATIONS..................................................   41
    18.7  PARI PASSU RANKING..............................................   41
    18.8  NEGATIVE PLEDGE.................................................   41
</TABLE>

<PAGE>

                                        4

<TABLE>
<S>                                                                          <C>
    18.9  TRANSACTIONS SIMILAR TO SECURITY................................   41
    18.10 BORROWINGS......................................................   42
    18.11 DISPOSALS.......................................................   42
    18.12 MERGERS AND ACQUISITIONS........................................   42
    18.13 COMPLIANCE WITH LAWS AND PAYMENT OF TAXES.......................   42
    18.14 CHANGE OF BUSINESS..............................................   43
    18.15 SHARE CAPITAL...................................................   43
    18.16 DISTRIBUTIONS...................................................   43
    18.17 INSURANCES......................................................   43
    18.18 CONDUCT OF BUSINESS.............................................   44
    18.19 USE OF PROCEEDS.................................................   44
    18.20 AMENDMENTS AND AGREEMENTS.......................................   44
    18.21 FINANCIAL COVENANTS.............................................   44

19. DEFAULT...............................................................   45
    19.1  EVENTS OF DEFAULT...............................................   45
    19.2  NON-PAYMENT.....................................................   46
    19.3  BREACH OF OTHER OBLIGATIONS.....................................   46
    19.4  MISREPRESENTATION...............................................   46
    19.5  LEGAL VALIDITY..................................................   46
    19.6  CROSS-DEFAULT...................................................   46
    19.7  INSOLVENCY......................................................   47
    19.8  INSOLVENCY PROCEEDINGS..........................................   47
    19.9  APPOINTMENT OF RECEIVERS AND MANAGERS...........................   48
    19.10 CREDITORS' PROCESS..............................................   48
    19.11 CESSATION OF BUSINESS...........................................   48
    (A)   THE BORROWER OR A HOLDING SUBSIDIARY CEASES, OR THREATENS TO
          CEASE, TO CARRY ON ALL OR A SUBSTANTIAL PART OF ITS BUSINESS....   48
    19.12 ILLEGALITY......................................................   48
    19.13 EFFECTIVENESS OF SECURITY.......................................   49
    19.14 CHANGE IN CONTROL...............................................   49
    19.15 ABANDONMENT OR NATIONALISATION..................................   49
    19.16 MATERIAL ADVERSE EFFECT.........................................   49
    19.17 MANGO ISRAEL....................................................   49
    19.18 ACCELERATION....................................................   49

20. ACCOUNTS..............................................................   50
    20.1  OPENING OF ACCOUNTS.............................................   50
    20.2  LOAN ACCOUNT....................................................   51
    20.3  REVENUE ACCOUNT.................................................   51
    20.4  GENERAL PROVISIONS RELATING TO ACCOUNTS.........................   51

21. SECURITY..............................................................   53
    21.1  EFFECTIVE DATE..................................................   53
    21.2  SECURITY........................................................   53

22. FEES AND EXPENSES.....................................................   53
    22.1  ARRANGEMENT FEE.................................................   53
    22.2  INITIAL AND SPECIAL COSTS.......................................   53
    22.3  ENFORCEMENT COSTS...............................................   54
    22.4  RETENTION.......................................................   54
    22.5  VAT.............................................................   54

23. STAMP DUTIES..........................................................   54
</TABLE>

<PAGE>

                                        5

<TABLE>
<S>                                                                          <C>
24. INDEMNITIES...........................................................   54
    24.1  CURRENCY INDEMNITY..............................................   54
    24.2  OTHER INDEMNITIES...............................................   55

25. EVIDENCE AND CALCULATIONS.............................................   55
    25.1  ACCOUNTS........................................................   55
    25.2  CERTIFICATES AND DETERMINATIONS.................................   55
    25.3  INTEREST CALCULATIONS...........................................   55

26. AMENDMENTS AND WAIVERS................................................   55
    26.1  AMENDMENTS......................................................   55
    26.2  WAIVERS AND REMEDIES CUMULATIVE.................................   56

27. CHANGES TO THE PARTIES................................................   56
    27.1  TRANSFERS BY BORROWER...........................................   56
    27.2  TRANSFERS BY BANK...............................................   56
    27.3  REFERENCE BANKS.................................................   56

28. DISCLOSURE OF INFORMATION.............................................   56

29. SET-OFF...............................................................   57

30. SEVERABILITY..........................................................   57

31. COUNTERPARTS..........................................................   57

32. NOTICES...............................................................   57
    32.1  GIVING OF NOTICES...............................................   57
    32.2  ADDRESSES FOR NOTICES...........................................   58

33. JURISDICTION..........................................................   58

34. WAIVER OF IMMUNITY....................................................   58

35. GOVERNING LAW.........................................................   59

36. THIRD PARTIES.........................................................   59
</TABLE>

<PAGE>

                                        6

THIS LOAN AGREEMENT is dated this 5thday of December 2005 between:

(1)  ELSCINT LTD. a private company (with company number 52-003883-7) organised
     and existing under the laws of the State of Israel, having its registered
     office at 13 Mozes Street, Tel Aviv, Israel, as borrower (the "BORROWER");
     and

(2)  BANK HAPOALIM B.M, a banking corporation incorporated in the State of
     Israel, acting through its Main Tel Aviv branch, whose address is at 41-45
     Rothschild Boulevard, Tel Aviv, Israel, as Bank (the "BANK"),

and amends and restates the Letter of Undertaking (as defined below).

WHEREAS   the Borrower entered into a Letter of Undertaking in favour of the
          Bank dated 23 October 2000, as amended from time to time ("LETTER OF
          UNDERTAKING"), pursuant to which the Bank provided a credit facility
          in two tranches to the Borrower in the aggregate amount of
          US$100,000,000;

WHEREAS   the Borrower has borrowed amounts of the facility provided under the
          Letter of Undertaking and has repaid a certain amount of the total
          outstandings borrowed under the Letter of Undertaking such that the
          total amounts outstanding are, on the date hereof, the amounts set out
          in Schedule 1 (Commitment), such amounts being divided between the
          Tranche A Commitment and Tranche B Commitment hereunder. Any remaining
          commitment under the Letter of Undertaking is cancelled in accordance
          with the terms of this Agreement; and

WHEREAS   the Bank has provided the Borrower with additional facilities in the
          aggregate amount of US$12,000,000; and

WHEREAS   the parties wish to amend and restate the terms of the credit facility
          provided under the Letter of Undertaking and thereafter and the
          security granted in favour of the Bank pursuant to the Letter of
          Undertaking and thereafter, all subject to and in accordance with the
          terms and conditions set out herein.

NOW, THEREFORE, IT IS AGREED as follows:

1.   INTERPRETATION

1.1  DEFINITIONS

In this Agreement:

<TABLE>
<S>                           <C>
ACCOUNTS                      (a)  the Loan Account; and

                              (b)  the Revenue Account.

ADVANCE                       The principal amount of loans advanced hereunder
                              by the Bank, or the principal amount of such
                              advances which are from time to time outstanding,
                              as the case may be.
</TABLE>

<PAGE>

                                        7

<TABLE>
<S>                           <C>
AFFILIATE                     A Subsidiary or a Holding Company of the Bank or
                              any other Subsidiary of that Holding Company.

AGENCY                        Includes, in relation to a state or supranational
                              organisation, any agency, authority, central bank,
                              department, government, legislature, ministry,
                              official or public person (whether autonomous or
                              not) of, or of the government of, that state or
                              supranational organisation.

AGREEMENT                     This agreement.

ASTRID PLAZA COMPLEX          The Astrid Plaza Complex, including inter alia,
                              The Astrid Park Plaza Hotel, 7 Astridplein,
                              Antwerp, Belgium.

ASTRID PLAZA VALUATION        Has the meaning given to such term in Clause
                              4.1(a) (Conditions Precedent) below.

AVAILABLE CURRENCY            Euros, Dollars, Pounds Sterling, and, in the case
                              of Tranche D Advances only, Euros, Dollars, Pounds
                              Sterling and NIS.

BANK'S SPOT RATE OF           The Bank's spot rate of exchange for the purchase
EXCHANGE                      of the relevant Available Currency in the London
                              foreign exchange market at or about 11.00a.m. on a
                              particular day.

BEA HOTELS                    BEA Hotels N.V., a company organized and existing
                              in the Netherlands with its registered office at
                              241 Keizerstracht, EA1016, Amsterdam.

BEA HOTELS LOANS              Any loan made by the Borrower or a Holding
                              Subsidiary (other than BEA Hotels) to BEA Hotels
                              and that remains outstanding from time to time.

BORROWER FUNDED SUBSIDIARY    The companies listed in Schedule 2, Part I as at
                              the date hereof and any other Subsidiary of the
                              Borrower engaged in the Business, where the Equity
                              Contributions of the Borrower in such Subsidiary
                              have been funded or refinanced, in whole or in
                              part, by the proceeds of the Facility.

BUSINESS                      The hotel business in Western and Central Europe,
                              including the development, acquisition,
                              refurbishment, conversion, extension and
                              construction of hotels, whether directly or
                              indirectly by the Borrower, or via its Borrower
                              Funded Subsidiaries and whether by way of direct
                              acquisition of rights in real estate or acting
                              through any other legal entity and, for the
                              purposes of Tranche C and Tranche D, the
                              acquisition and purchase of the business of Mango
                              Israel.

BUSINESS DAY                  A day (other than a Saturday or a Sunday) on which
                              banks are open for business in London, Tel-Aviv
                              and New York.
</TABLE>

<PAGE>

                                        8

<TABLE>
<S>                           <C>
BUSINESS GROUP                The Borrower, the Holding Subsidiaries and the
                              Borrower Funded Subsidiaries.

CHARGE OVER ACCOUNTS          The charge dated the date hereof executed by the
                              Borrower in favour of the Bank over the Accounts.

COMMITMENT PERIOD             The period from the date of this Agreement to the
                              Term Date.

COST BASE                     (a)  in relation to an Advance in Euros, EURIBOR;

                              (b)  in relation to an Advance in Dollars or
                                   Pounds Sterling, LIBOR; and

                              (c)  in relation to an Advance in NIS, the Bank's
                                   Wholesale Rate.

DEBT SERVICE                  In respect of a period, the aggregate amount of:

                              (a)  all Finance Charges accrued or to be accrued
                                   during that period; and

                              (b)  all repayments and/or prepayments of
                                   Financing Principal that fall due during
                                   that period.

DEBT SERVICE COVER RATIO      In respect of any period, the ratio of A:B where:

                              A    Operating Profit for that period; and

                              B    Debt Service for that period.

DEFAULT                       An Event of Default or an event or circumstance
                              which but for the giving of notice, passage of
                              time, the making of any determination or
                              fulfillment of any other applicable condition (or
                              any combination of the foregoing) would constitute
                              an Event of Default.

DISBURSEMENT REQUEST          A disbursement request made by the Borrower,
                              substantially in the form of Schedule 6 (Form of
                              Disbursement Request).

DISTRIBUTION                  Any monies received from and/or transfers made by
                              any Borrower Funded Subsidiary deriving from the
                              Business which are made in respect of and/or
                              deriving from dividends, returns on capital,
                              repayments of share premium, payments with respect
                              to repayment of shareholder loans, award of loans
                              made to the Borrower by any Borrower Funded
                              Subsidiary, redemption, and/or any other
                              distribution of any kind or description
                              constituting a repayment or return on investment,
</TABLE>

<PAGE>

                                        9

<TABLE>
<S>                           <C>
                              in all cases net of bank charges, reasonable
                              brokerage fees and withholding taxes, but,
                              excluding Free Funds.

DOLLARS, USD, US DOLLARS      The lawful currency for the time being of the
OR $                          United States of America.

DRAWDOWN DATE                 A Business Day upon which any Advance is to be
                              made.

DRAWDOWN REQUEST              A request made by the Borrower for an Advance,
                              substantially in the form of Schedule 5 (Form of
                              Drawdown Request).

EQUITY CONTRIBUTIONS          The amounts specified in Schedule 2, Part II as at
                              the date hereof, and all other investments
                              (whether in the form of shareholder loans or as
                              equity investment) made, subject to the consent of
                              the Bank, by the Borrower (directly or indirectly
                              through a Holding Subsidiary) to each Borrower
                              Funded Subsidiary, with respect to a Project (as
                              amended by the Bank from time to time, upon a
                              prepayment in accordance with Clause 7.3
                              (Prepayment and Cancellation)).

EURO or EUROS or E            The single currency of the Participating Member
                              States;

EURIBOR                       In relation to an Advance or unpaid sum
                              denominated in Euro for an Interest Period:

                              (a)  the rate per annum equal to the rate for
                                   deposits in Euro determined by the Banking
                                   Federation of the European Union for the
                                   relevant period, displayed on the Telerate
                                   Screen page 248 or any equivalent successor
                                   to that page or other page as appropriate
                                   (as reasonably determined by the Bank) (for
                                   the purposes of this definition, the
                                   "Telerate Screen"); or

                              (b)  if the relevant rates do not appear on the
                                   Telerate Screen for the purposes of
                                   paragraph (a) above, or the Bank reasonably
                                   determines that no rate for a period of
                                   comparable duration to the relevant Interest
                                   Period appears on the Telerate Screen) the
                                   arithmetic mean (rounded upwards to five
                                   decimal places) of the rates, as supplied to
                                   the Bank at its request, quoted by the
                                   Reference Banks to leading banks in the
                                   European Interbank Market,

                              at or about 11.00 a.m. on the relevant Rate
                              Fixing Day for the offering of deposits in Euro
                              for a period comparable to the relevant Interest
                              Period or relevant period in respect of any
                              unpaid sum.

EVENT OF DEFAULT              An event specified as such in Clause 19.1 (Events
                              of Default).
</TABLE>

<PAGE>

                                       10

<TABLE>
<S>                           <C>
FACILITY                      Any of the facilities made available under this
                              Agreement as described in Clause 2 (Facility).

FACILITY OFFICE               The main Tel Aviv branch of the Bank or such
                              other branch in Israel as may be designated by
                              the Bank by written notice to the Borrower at
                              least fifteen (15) days in advance.

FACILITY PERIOD               The period commencing on the date of this
                              Agreement and ending on the Final Maturity Date.

FINAL MATURITY DATE           (a)  in respect of Tranche A and Tranche B, 31st
                                   December, 2015;

                              (b)  in respect of Tranche C, 31st December 2012;
                                   and

                              (c)  in respect of Tranche D, 31st December, 2010.

FINANCE CHARGES               (a)  interest, commissions, fees and costs
                                   payable by the Borrower under the Finance
                                   Documents;

                              (b)  amounts ascertained as being payable by the
                                   Borrower under Clause 13 (Taxes), Clause 15
                                   (Increased Costs), Clause 23 (Stamp Duties)
                                   and Clause 24 (Indemnities) of this
                                   Agreement; and

                              (c)  any value added or other taxes payable by
                                   the Borrower in respect of the above,

                              but excluding Financing Principal.

FINANCE DOCUMENTS             (a)  this Agreement;

                              (b)  each Security Document;

                              (c)  the documentation required to open or
                                   operate the Accounts,

                              and any other document designated as such by the
                              Bank and the Borrower.

FINANCIAL INDEBTEDNESS        any indebtedness in respect of:

                              (a)  moneys borrowed or debit balances at banks
                                   and other financial institutions;

                              (b)  any charge, bond, note, loan stock or other
                                   security;
</TABLE>

<PAGE>

                                       11

<TABLE>
<S>                           <C>
                              (c)  any acceptance or documentary credit;

                              (d)  receivables sold or discounted (otherwise
                                   than on a non-recourse basis);

                              (e)  the acquisition cost of any asset to the
                                   extent payable before or after the time of
                                   acquisition or possession by the party
                                   liable where the advance or deferred payment
                                   is arranged primarily as a method of raising
                                   finance or financing the acquisition of that
                                   asset;

                              (f)  any lease entered into primarily as a method
                                   of raising finance or financing the
                                   acquisition of the asset leased;

                              (g)  any currency swap or interest swap, cap or
                                   collar arrangement or any other derivative
                                   instrument;

                              (h)  any amount raised under any other
                                   transaction having the commercial effect of
                                   a borrowing or raising of money; or

                              (i)  any guarantee, indemnity or similar
                                   assurance against financial loss of any
                                   person.

FINANCING PRINCIPAL           Principal amounts outstanding from time to time
                              under this Agreement.

FREE FUNDS                    Any cash attributable to operating profits
                              generated by a Project which may become available
                              to the relevant Borrower Funded Subsidiary after
                              all debt service reserve and other retention and
                              security obligations of such Borrower Funded
                              Subsidiary have been satisfied or waived in
                              accordance with the terms of its senior credit
                              facility entered into for the purpose of the
                              relevant Project.

GAAP                          (a)  in relation to the Borrower, the Israeli
                                   accounting standards promulgated from time
                                   to time by the Israeli Accounting Standards
                                   Board (or equivalent body); and

                              (b)  in relation to BEA Hotels, the international
                                   accounting standards promulgated from time
                                   to time by the International Accounting
                                   Standards Committee.

GROUP                         At any time, the Borrower and its Subsidiaries at
                              that time.

GUARANTEE                     The guarantee entered into by Bea Hotels in
                              favour of the Bank, dated the date hereof, in
                              which Bea Hotels guarantees the obligations of
                              the Borrower pursuant to this Agreement in the
                              form and text attached as Schedule 8 (Form of
                              Guarantee).
</TABLE>

<PAGE>

                                       12

<TABLE>
<S>                           <C>
HOLDING COMPANY               In relation to a person, means an entity of which
                              that person is a Subsidiary.

HOLDING SUBSIDIARY            Each of:

                              (a)  PEP Trust Ltd;

                              (b)  Elscint Holdings & Investments N.V.; and

                              (c)  BEA Hotels.

INSURANCE PROCEEDS            All proceeds of Insurances payable, to or for the
                              account of, the Borrower whether by way of
                              claims, return of premiums or otherwise.

INSURANCES                    All contracts and policies of insurance and
                              re-insurance of any kind:

                              (a)  pertaining to the Business and taken out by
                                   or on behalf of any member of the Business
                                   Group in accordance with the terms of the
                                   Finance Documents; or

                              (b)  in which the Borrower has an interest (to
                                   the extent of its interest only).

INTEREST PERIOD               Each period determined in accordance with Clause
                              8 (Interest Periods) by reference to which
                              interest on an Advance or an overdue amount is
                              calculated.

LIBOR                         With respect to any Interest Period, the rate of
                              interest on each respective Rate Fixing Day for 6
                              months deposits in Dollars or Pounds Sterling
                              with respect to such Interest Period (except for
                              the first Interest Period of each Advance which
                              might be of a shorter duration; such Interest
                              Period called for the purposes of this definition
                              "Special Interest Period"; which rate shall be
                              determined by the Bank in accordance with the
                              actual length of the respective Special Interest
                              Period) quoted on the display designated as page
                              "LIBOR 01" to subscribers of the "Reuters Money
                              Market", at or about 11:00 a.m. London time and,
                              rounded upward, if necessary to the nearest whole
                              multiple of one sixteenth of one per cent (1/16%).

LOAN ACCOUNT                  The account held at the Facility Office in the
                              name of the Borrower with account number 662960
                              so designated to be maintained in accordance with
                              this Agreement.

LOAN ASSIGNMENT               The assignment by way of security dated the date
                              hereof entered into by the Borrower in favour of
                              the Bank in relation to the BEA Hotels Loans, in
                              the form attached hereto as
</TABLE>

<PAGE>

                                       13

<TABLE>
<S>                           <C>
                              Schedule 10 (Form of Loan Assignment).

MANGO ISRAEL                  Mango Israel Clothing & Footwear Ltd a company
                              (with registration number 51-255705-9) organised
                              and existing under the laws of the State of
                              Israel, having its registered office at 2 Weizman
                              Street, Tel Aviv, Israel.

MANGO ISRAEL FACILITY         The credit facility dated 5 May 2005 provided by
                              the Bank in favour of Mango Israel.

MANGO ISRAEL GUARANTEE        The guarantee dated 4 May 2005 provided by the
                              Borrower in favour of the Bank pursuant to which
                              the Borrower guarantees all of Mango Israel's
                              financial obligations towards the Bank
                              (including, but not limited to, its obligations
                              under the Mango Israel Facility).

MARGIN                        2.85% (two and eighty-five hundredths of one
                              percent) per annum, other than in relation to a
                              Tranche D Advance denominated in NIS, in which
                              case the Margin shall be 2.25% (two and one
                              quarter of one percent) per annum.

MATERIAL ADVERSE EFFECT       Any effect which, in the opinion of the Bank:

                              (a)  is or is likely to be materially adverse to
                                   the ability of the Borrower to perform or
                                   comply with its obligations under the
                                   Finance Documents (including any of its
                                   payment obligations under the Finance
                                   Documents) in a timely manner; or

                              (b)  is or is likely to be materially prejudicial
                                   to:

                                   (i)  the interests of the Bank under the
                                        Finance Documents; or

                                   (ii) the business, operations or financial
                                        condition of the Borrower.

OPERATING PROFIT              The combined gross operating profit of the Astrid
                              Plaza Hotel before tax, plus amortisation and
                              depreciation calculated, in each case, in
                              accordance with GAAP and:

                              (a)  in the case of a calculation with respect to
                                   a year ending on 30 June in any year, as
                                   shown in the two sets of half yearly
                                   financial statements relating to that year
                                   delivered to the Bank pursuant to this
                                   Agreement and with reference to the
                                   operating accounts for the Astrid Plaza
</TABLE>

<PAGE>

                                       14

<TABLE>
<S>                           <C>
                                   Hotel for such period supplied pursuant to
                                   this Agreement.

                              (b)  in the case of a calculation with respect to
                                   a year ending on 31 December in any year, as
                                   shown in the financial statements relating
                                   to that year delivered to the Bank pursuant
                                   to and with reference to the operating
                                   accounts for the Astrid Plaza Hotel for such
                                   period supplied pursuant to this Agreement.

ORIGINAL DOLLAR AMOUNT        In relation to an Advance, means:

                              (a)  for an Advance denominated in U.S. Dollars,
                                   its amount; or

                              (b)  for an Advance denominated in an Available
                                   Currency other than U.S. Dollars, the
                                   equivalent in U.S. Dollars of the amount of
                                   that Advance, calculated on the basis of the
                                   Bank's Spot Rate of Exchange on the Rate
                                   Fixing Day for such Advance.

ORIGINAL GROUP ACCOUNTS       The audited and consolidated financial statements
                              of each of the Borrower and BEA Hotels for the
                              financial year ended 31st December, 2004.

PARTICIPATING MEMBER STATE    A member state of the European Union that has
                              adopted the single currency as its lawful
                              currency under the legislation of the European
                              Union for European Monetary Union.

PARTY                         A party to this Agreement.

PERMITTED FINANCIAL           Any Financial Indebtedness:
INDEBTEDNESS

                              (a)  incurred under the Finance Documents
                                   (including, but not limited to, the Mango
                                   Israel Guarantee);

                              (b)  of the Borrower or a Borrower Funded
                                   Subsidiary incurred before the date hereof,
                                   in favour of a financial institution in
                                   respect of an existing Project;

                              (c)  of the Borrower or a Borrower Funded
                                   Subsidiary incurred on or after the date
                                   hereof, in favour of a financial institution
                                   in respect of a Refinancing or financing
                                   (subject to the prior written consent of the
                                   Bank); and

                              (d)  (other than those set out above) of the
                                   Borrower or a Borrower Funded Subsidiary
                                   after the date hereof,
</TABLE>

<PAGE>

                                       15

<TABLE>
<S>                           <C>

                                   incurred in favour of a financial institution
                                   in respect of the purchase of a new asset
                                   and/or in respect of the development and
                                   construction of a new Project (subject to the
                                   prior written consent of the Bank).

PERMITTED SECURITY INTEREST   Any Security Interest:

                              (a)  arising under the Security Documents;

                              (b)  created by the Borrower or a Borrower Funded
                                   Subsidiary before the date hereof, to a
                                   financial institution in respect of an
                                   existing Project (as referred to in Schedule
                                   11 (Permitted Security Interests));

                              (c)  created by the Borrower or a Borrower Funded
                                   Subsidiary on or after the date hereof, to a
                                   financial institution in respect of a
                                   Refinancing (subject to the prior written
                                   consent of the Bank); and

                              (d)  (other than those set out above) created by
                                   the Borrower or a Borrower Funded Subsidiary
                                   after the date hereof, to a financial
                                   institution in respect of the purchase of a
                                   new asset and/or in respect of the
                                   development and construction of a new
                                   Project (subject to the prior written
                                   consent of the Bank) provided that the
                                   financial institution is funding such new
                                   asset or Project,

                              provided that no Security Interest created by the
                              Borrower or any Borrower Funded Subsidiary after
                              the date hereof shall impair or rank ahead of any
                              Security Interest arising under the Security
                              Documents.

PLEDGES                       Each of the following pledges in favour of the
                              Bank:

                              (a)  share pledge (first ranking) dated on or
                                   about the date hereof, executed by the
                                   Borrower over its shares in PEP Trust Ltd
                                   (Israel);

                              (b)  share pledge (first ranking) dated on or
                                   about the date hereof, executed by PEP Trust
                                   Ltd (Israel) over its shares in Elscint
                                   Holdings and Investments N.V.;

                              (c)  share pledge (first ranking) dated 1 August
                                   2002, executed by Elscint Holdings and
                                   Investments N.V. over its shares in Bea
                                   Hotels;

                              (d)  share pledge executed by Bea Hotels over its
                                   shares in each of:
</TABLE>

<PAGE>

                                       16

<TABLE>
<S>                           <C>
                                   (i)  Victory Enterprises II B.V., on or about
                                        the date hereof (second ranking);

                                   (ii) Grandis Hotel Holding B.V., dated 5
                                        November 2002 (second ranking);

                                   (iii) Victoria Hotel Holding B.V., dated 31
                                        March 2003 (second ranking);

                                   (iv) Riverbank Hotel Holding B.V., dated 31
                                        March 2003 (second ranking); and

                                   (v)  Africana Holding B.V. (second ranking),
                                        dated 5 November 2002;

                              (e)  law lien agreement, dated on or about the
                                   date hereof, executed by Bea Hotels over its
                                   shares in Andrassy, 25 Kft (first ranking);

                              (f)  share pledge dated on or about the date
                                   hereof, executed by Victory Enterprises II
                                   B.V. over its shares in Astrid Hotel
                                   Holdings B.V. (first ranking) and Victoria
                                   Hotel and Restaurant Investments B.V.
                                   (second ranking);

                              (g)  share pledge, dated on or about the date
                                   hereof, executed by Astrid Hotel Holdings
                                   B.V. in favour of the Bank over its shares
                                   in Astridplaza N.V. (first ranking);

                              (h)  mortgage dated on or about the date hereof,
                                   executed by Astridplaza N.V and the Bank
                                   over the Astrid Park Plaza Hotel (first
                                   ranking); and

                              (i)  share pledge dated on or about the date
                                   hereof, executed by the Borrower over its
                                   shares in Mango Israel (first ranking).

POUNDS STERLING, L or GBP     The lawful currency for the time being of the
                              United Kingdom.

PROJECT                       Each project comprising the Business which has
                              been and/or shall be carried out by a Borrower
                              Funded Subsidiary.

PROJECT REQUEST               A letter of request, substantially in the form
                              set out in Schedule 4, Part I (Form of Project
                              Request) pursuant to which the Borrower requests
                              approval of the Bank, in principle, to make an
                              Equity Contribution to a specific Project.

PROJECT CONSENT               A letter of consent, substantially in the form
                              set out in
</TABLE>

<PAGE>

                                       17

<TABLE>
<S>                           <C>
                              Schedule 4, Part II (Form of Project Consent),
                              pursuant to which the Bank agrees, in principle,
                              to the Borrower making an Equity Contribution to a
                              specific Project, as requested by the Borrower in
                              the relevant Project Request.

RATE FIXING DAY               The second Business Day before the first day of
                              an Interest Period for an Advance (or such other
                              day as is generally treated as the rate fixing
                              day by market practice in the London interbank
                              market).

REFERENCE BANKS               Subject to Clause 27.3 (Reference Banks), HSBC
                              plc, Citibank, The Royal Bank of Scotland and
                              Barclays Bank.

REFINANCING                   Any loan facility provided in favour of the
                              Borrower and/or a Borrower Funded Subsidiary in
                              respect of a Project, the proceeds of which are
                              applied in whole or in part to the repayment of
                              either:

                              (a)  the construction loan facility in favour of
                                   such Borrower Funded Subsidiary in respect
                                   of the development of the relevant Project;
                                   or

                              (b)  any previous refinancing loan facility in
                                   favour of such Borrower Funded Subsidiary in
                                   respect of the relevant Project.

REVENUE ACCOUNT               The account held at the Facility Office in the
                              name of the Borrower with account number 615520,
                              so designated to be maintained in accordance with
                              this Agreement.

REVENUES                      All amounts payable to and/or received by the
                              Borrower or a Borrower Funded Subsidiary and/or
                              to their account pertaining to the Business
                              including, without limitation:

                              (a)  all revenues, loan repayments and
                                   Distributions received from any Borrower
                                   Funded Subsidiary;

                              (b)  interest and other income earned on balances
                                   standing to the credit of any bank accounts
                                   held by (i) the Borrower in respect of the
                                   Business; and (ii) Borrower Funded Subsidiary
                                   (to the extent that such amounts are not
                                   subject to a Security Interest in terms of
                                   the senior debt facility taken out by that
                                   Borrower Funded Subsidiary);

                              (c)  all Insurance Proceeds; and

                              (d)  all proceeds received upon a Refinancing,
                                   sale, public offering or private placement.
</TABLE>

<PAGE>

                                       18

<TABLE>
<S>                           <C>
SECURITY ASSET                Any asset which is the subject of any Security
                              Interest under the Security Documents.

SECURITY DOCUMENTS            (a)  the Pledges;

                              (b)  the Charges over Accounts;

                              (c)  the Subordination Agreements;

                              (d)  the Guarantee;

                              (e)  the Mango Israel Guarantee; and

                              (f)  the Loan Assignments,

                              and any other document evidencing or creating any
                              Security Interest over any asset of the Borrower
                              or Holding Subsidiary to secure any obligations
                              of the Borrower to the Bank under the Finance
                              Documents.

SECURITY INTEREST             Any mortgage, pledge, lien, charge, assignment,
                              hypothecation or security interest or any other
                              agreement or arrangement having the effect of
                              conferring security.

SEMI-ANNUAL DATE              30th June and 31st December of each year.

SHAREHOLDER                   Elbit Medical Imaging Ltd., a company
                              incorporated and existing under the laws of the
                              State of Israel, with company number 52-003883-7.

SUBORDINATED CREDITOR         Any Subsidiary or Holding Company of the Borrower
                              that provides debt funding to the Borrower, from
                              time to time.

SUBORDINATION AGREEMENTS      (a)  the subordination agreement dated the date
                                   hereof between the Bank, the Borrower and
                                   Elbit Medical Imaging Ltd; and

                              (b)  each subordination agreement to be entered
                                   into from time to time (substantially in the
                                   form of Schedule 9 (Form of Subordination
                                   Agreement)) in accordance with the terms of
                                   Clause 18.10 (c).

SUBSIDIARY                    An entity from time to time of which a person has
                              direct or indirect control, or owns directly or
                              indirectly more than twenty five per cent. (25%)
                              of the share capital or similar right of
                              ownership.

TAXES                         Includes all present and future income and other
                              taxes, levies, imposts, deductions, charges and
                              withholdings in the nature of
</TABLE>

<PAGE>

                                       19

<TABLE>
<S>                           <C>
                              taxes whatsoever together with interest thereon
                              and penalties with respect thereto, if any, and
                              any payments made on or in respect thereof and
                              "TAXATION" shall be construed accordingly.

TERM DATE                     The first anniversary of the date of this
                              Agreement.

TOTAL COMMITMENT              The aggregate of the Tranche A Commitment, the
                              Tranche B Commitment, the Tranche C Commitment,
                              Tranche D Commitment and the Mango Israel
                              Facility.

TRANCHE A, TRANCHE B,         Have the meaning given to such terms in Clause 2
TRANCHE C and TRANCHE D       (Facility).

TRANCHE A ADVANCE             Any Advance made under Tranche A.

TRANCHE A COMMITMENT          The Euro amount set out in the "TRANCHE A
                              COMMITMENT" column in Schedule 1 (Commitment), to
                              the extent not cancelled, transferred or reduced
                              under this Agreement.

TRANCHE A REPAYMENT           The schedule of principal amounts to be repaid by
SCHEDULE                      the Borrower on the last day of each Interest
                              Period up to and including the Final Maturity
                              Date, as specified in Schedule 7 (Tranche A
                              Repayment Schedule) on the basis of the
                              outstanding Tranche A Advances on the date hereof
                              and as may be amended from time to time in
                              accordance with Clause 6.4 (Tranche A Repayment
                              Schedule).

TRANCHE B ADVANCE             Any Advance made under Tranche B.

TRANCHE B COMMITMENT          The aggregate of the Euro, US Dollar and Pounds
                              Sterling amounts set out in the "TRANCHE B
                              COMMITMENT" column in Schedule 1 (Commitment), to
                              the extent not cancelled, transferred or reduced
                              under this Agreement.

TRANCHE C ADVANCE             Any Advance made under Tranche C.

TRANCHE C COMMITMENT          The aggregate of the Euro, US Dollar and Pounds
                              Sterling amounts set out in the "TRANCHE C
                              COMMITMENT" column in Schedule 1 (Commitment), to
                              the extent not cancelled, transferred or reduced
                              under this Agreement.

TRANCHE D ADVANCE             Any Advance made under Tranche D.

TRIGGER EVENT                 Has the meaning ascribed to such term in Clause
                              7.4(b)(Mandatory Prepayment).

WHOLESALE RATE                The rate per annum determined from time to time
                              by the Bank, to be the basic rate, before the
                              application of any margin, at
</TABLE>

<PAGE>

                                       20

<TABLE>
<S>                           <C>
                              which the Bank is willing to grant to its
                              customers in general loans in NIS for a similar
                              term as each Advance, as published internally by
                              the Bank from time to time, such rate being
                              generally applicable to all branches of the Bank
                              in Israel.
</TABLE>

1.2  CONSTRUCTION

(a)  In this Agreement, unless the contrary intention appears, a reference to:

     (i)  an "AMENDMENT" includes a supplement, novation or re-enactment and
          "AMENDED" is to be construed accordingly;

          "ASSETS" includes properties, revenues and rights of every
          description;

          an "AUTHORISATION" includes an authorisation, consent, approval,
          resolution, licence, exemption, filing and registration;

          "CONTROL" means the power to direct the management and policies of an
          entity, whether through the ownership of voting capital, by contract
          or otherwise;

          a "MONTH" is a reference to a period starting on one day in a calendar
          month and ending on the day before the numerically corresponding day
          in the next calendar month, except that if there is no numerically
          corresponding day in the month in which that period ends, that period
          shall end on the last day in that calendar month;

          a "PERSON" includes any person, firm, company, corporation,
          partnership, association, government, state, Agency or other entity or
          one or more of them;

          a "REGULATION" includes any regulation, rule, official directive,
          request or guideline (whether or not having the force of law) of any
          governmental, inter-governmental or supranational body, Agency,
          department or regulatory, self-regulatory or other authority or
          organisation;

          a "SCREEN" or a "PAGE" on a "Screen" in the definition of "LIBOR" and
          "EURIBOR" includes any replacement screen or page nominated by the
          British Bankers Association as the information vendor for the purpose
          of displaying British Bankers Association Interest Settlement Rates
          for deposits in various currencies;

     (ii) a provision of law is a reference to that provision as amended or
          re-enacted;

     (iii) a Clause or a Schedule is a reference to a clause of or a schedule to
          this Agreement;

     (iv) a person includes its successors and/or assigns;
<PAGE>

                                       21

     (v)  a Finance Document or another document is a reference to that Finance
          Document or other document as amended, subject to compliance with the
          terms of this Agreement;

     (vi) a time of day is a reference to Tel Aviv time; and

     (vii) any representation by the Borrower, being to the best of its
          knowledge shall be deemed to be to the best of such person's knowledge
          after due inquiry.

(b)  Unless the contrary intention appears, a term used in any other Finance
     Document or in any notice given under or in connection with any Finance
     Document has the same meaning in that Finance Document or notice as in this
     Agreement.

(c)  The index to and the headings in this Agreement are for convenience only
     and are to be ignored in construing this Agreement.

(d)  In this Agreement, words denoting the singular include the plural and vice
     versa; words denoting any gender include all genders.

1.3  RESTATEMENT AND AMENDMENT

(a)  With effect from the date hereof:

     (i)  Other than as set out in paragraph (iv) below, the Letter of
          Undertaking will be replaced in its entirety by the terms and
          conditions set out in this Agreement, and, accordingly, the rights and
          obligations of the parties relating to their future performance under
          the Letter of Undertaking will be governed by, and construed solely in
          accordance with the terms and conditions set out in this Agreement.

     (ii) the Parties acknowledge that certain amounts borrowed under the Letter
          of Undertaking have been repaid, and that neither Party has any claim
          against the other with respect to the advance and repayment of such
          amounts.

     (iii) all commitment of the Bank under the Letter of Undertaking, other
          than an amount equal to the aggregate of the Tranche A Commitment and
          Tranche B Commitment, is hereby cancelled.

     (iv) the Borrower confirms and acknowledges that, subject to paragraphs
          (ii) and (iii) above:

          (A)  its outstanding liabilities under the Letter of Undertaking and
               this Agreement shall, with effect from and including the date
               hereof, continue in full force and effect; and

          (B)  it is not (and shall not be treated as being) exonerated or
               discharged in any way whatsoever and howsoever arising from the
               whole or any part of its outstanding liabilities under the Letter
               of Undertaking and this Agreement, nor shall its outstanding
               liabilities under the Letter of Undertaking and this Agreement be
               in any way determined, lessened,

<PAGE>

                                       22

               impaired or affected by virtue of any provisions of this
               Agreement and/or the amendment, modification and restatement of
               the Letter of Undertaking provided for herein or by any other
               means whatsoever and howsoever arising which, but for this
               confirmation, would or might operate to exonerate or discharge
               the Borrower from the whole or any part of its outstanding
               liabilities or otherwise affect any of the same under the Letter
               of Undertaking and this Agreement.

(b)  For the avoidance of doubt, interest, fees and other amounts accrued under
     this Agreement prior to the date hereof shall be calculated in accordance
     with the Letter of Undertaking.

2.   FACILITY

(a)  Subject to the terms of this Agreement, the Bank shall continue to make
     available to the Borrower during the Facility Period, the following
     facilities:

     (i)  a term loan facility in an aggregate amount equal to the Tranche A
          Commitment, to be designated as Tranche A;

     (ii) a term loan facility in an aggregate amount equal to the Tranche B
          Commitment, to be designated as Tranche B;

     (iii) a term loan facility in an aggregate amount equal to the Tranche C
          Commitment, to be designated as Tranche C; and

     (iv) a term loan facility in an amount which, when aggregated the Mango
          Israel Facility, does not exceed US$4,021,000 (four million and
          twenty one thousand US Dollars), to be designated as Tranche D,
          provided that the parties acknowledge that Tranche D is fully drawn at
          the date hereof.

(b)  The Bank shall only be obliged to lend if the conditions precedent under
     Clause 4 (Conditions Precedent) have been satisfied in accordance with the
     terms of that Clause.

3.   PURPOSE

3.1  TRANCHE A ADVANCES

     The Tranche A Advance is solely to fund (whether directly, indirectly
     and/or by the refinancing of any BEA Hotels Loans) the acquisition,
     construction and development of the Astrid Plaza Complex.

3.2  TRANCHE B ADVANCES

     The Tranche B Advance is solely to fund the Borrower's Equity Contributions
     to the Borrower Funded Subsidiaries with respect to Projects approved by
     the Bank carried out by such Borrower Funded Subsidiaries.

3.3  TRANCHE C ADVANCES

<PAGE>

                                       23

     Each Tranche C Advance is solely to fund the acquisition by the Borrower of
     100% of the equity and voting rights of Mango Israel.

     (

3.4  TRANCHE D ADVANCES

     Each Tranche D Advance is solely to fund the operation of Mango Israel.

3.5  NO OBLIGATION TO MONITOR

     Without affecting the obligations of the Borrower in any way, the Bank has
     no duty to monitor or verify the application of any Advance.

4.   CONDITIONS PRECEDENT

4.1  DOCUMENTARY CONDITIONS PRECEDENT

     The obligations of the Bank to the Borrower under this Agreement are
     subject to the condition precedent that the Bank has received:

     (a)  an original letter addressed to the Bank setting out the valuation of
          the Astrid Plaza Complex (the "ASTRID PLAZA VALUATION"), such
          valuation to be carried out by an independent surveyor chosen by the
          Borrower to the satisfaction of the Bank; and

     (b)  originals, or where appropriate, copies certified as true, complete
          and up-to-date by an authorised signatory of all of the documents set
          out in Schedule 3 (Conditions Precedent Documents) in form and
          substance satisfactory to the Bank.

4.2  FURTHER CONDITIONS PRECEDENT

     The obligation of the Bank to make any Advance under Clause 5.3 (Advances)
     or Clause 11 (Amount of Available Currencies) is subject to the further
     conditions precedent that:

     (a)  the amount of such Tranche D Advance does not, when added to the
          aggregate of all outstanding Tranche D Advances and all outstanding
          amounts under the Mango Israel Facility, exceed US$4,021,000 (four
          million and twenty one thousand US Dollars);

     (b)  the amount of such Advance does not, when added to the aggregate of
          all outstanding Advances, exceed the Total Commitment;

     (c)  on both the date of the Drawdown Request and the Drawdown Date:

          (i)  the representations and warranties in Clause 17 (Representations
               and Warranties) to be repeated on those dates are correct and
               will be correct immediately after the Advance is made; and

          (ii) no Default is outstanding or would be likely to result from the
               Advance;

<PAGE>

                                       24

     (d)  the Borrower has submitted a Project Request to the Bank in respect of
          the Project to which the Advance relates;

     (e)  the Borrower has received a Project Consent from the Bank in respect
          of the Project to which the Advance relates; and

     (f)  with respect to a Tranche C Advance for the purpose described in
          Clause 3.1(ii) above, the Borrower has entered into the Security
          Document described in paragraph (f) of the definition of Security
          Document.

5.   DRAWDOWN

5.1  COMMITMENT PERIOD

(a)  The Borrower may borrow an Advance during the Commitment Period if the Bank
     receives, not later than 11.00 a.m., ten Business Days before the proposed
     Drawdown Date, a duly completed Drawdown Request. Each Drawdown Request is
     irrevocable.

(b)  The undrawn amount of the Facility shall be automatically cancelled at
     close of business on the Term Date.

5.2  COMPLETION OF DRAWDOWN REQUESTS

     A Drawdown Request will not be regarded as having been duly completed
     unless:-

(a)  it identifies the Project to which the Advance relates and whether the
     Advance is to be a Tranche C Advance or a Tranche D Advance;

(b)  the Drawdown Date is a Business Day falling on or before the last day of
     the Commitment Period;

(c)  the amount of the Advance is:

     (i)  at least US$100,000 (or its equivalent in accordance with Clause 11
          (Amount of Available Currencies)); or

     (ii) the maximum undrawn amount available under the Facility on the
          proposed Drawdown Date; or

     (iii) such other amount as the Bank may agree in writing; and

(d)  each Drawdown Request must specify one Advance only, but the Borrower may,
     subject to the other terms of this Agreement, deliver more than one
     Drawdown Request on any one day;

<PAGE>

                                       25

5.3  ADVANCE

(a)  Subject to the terms of this Agreement, the Bank shall make each Advance
     available to the Borrower on the relevant Drawdown Date pursuant to the
     relevant Drawdown Request.

(b)  The entire amount of the Advance shall be deposited in the Loan Account
     from which withdrawals may only subsequently be made for the purposes
     specified in Clause 3 and in accordance with the procedures set out in
     Clause 20 (Accounts and Cashflow Priorities).

5.4  CONSOLIDATION

(a)  All outstanding Advances on the date of this Agreement shall be
     consolidated, to form one single Tranche A Advance in the amount of the
     Tranche A Commitment and one single Tranche B Advance per currency in the
     amount of the Tranche B Commitment.

(b)  All outstanding Tranche C Advances and Tranche D Advances on the Term Date
     shall be consolidated to form one Tranche C Advance per currency and one
     Tranche D Advance per currency, respectively.

6.   REPAYMENT

6.1  TRANCHE A REPAYMENT

     The Borrower shall repay the outstanding Tranche A Advances in accordance
     with the Tranche A Repayment Schedule.

6.2  TRANCHE B REPAYMENT

     The Borrower shall repay the outstanding Tranche B Advances in accordance
     with Clause 7.3 (Mandatory Prepayment), and in any event as follows:

     (a)  50% of the outstanding Tranche B Advances shall be repaid no later
          than 31st December, 2010; and

     (b)  the remaining 50% of the outstanding Tranche B Advances shall be
          repaid on the Final Maturity Date.

     In the event that the Borrower is required to repay amounts in accordance
     with paragraph (a) above, such repaid amounts shall be attributed pro rata
     to the Equity Contributions outstanding at such time.

6.3  TRANCHE C REPAYMENT

     The Borrower shall repay the outstanding Tranche C Advances in ten equal
     semi-annual installments, with the first installment due and payable pay on
     the second anniversary of the date of the Agreement.

<PAGE>

                                       26

6.4  TRANCHE D REPAYMENT

     The Borrower shall repay all outstanding Tranche D Advances on the Final
     Maturity Date.

6.5  CURRENCY

     Each Advance shall be repaid in the Available Currency in which such
     Advance was borrowed.

6.6  TRANCHE A REPAYMENT SCHEDULE

     In the event that any Tranche A Advance is prepaid by the Borrower in whole
     or in part in accordance with any of Clauses 7.1 (Voluntary Prepayment) to
     7.3 (Mandatory Prepayment) inclusive below, the amount of such prepayment
     shall be applied pro rata against all future repayment installments, and
     the Tranche A Repayment Schedule amended accordingly.

6.7  RE-BORROWING

     No amounts repaid or prepaid by the Borrower to the Bank with respect to
     Tranche A, Tranche B, Tranche C or Tranche D may be re-borrowed.

7.   PREPAYMENT AND CANCELLATION

7.1  VOLUNTARY PREPAYMENT

(a)  The Borrower may, by giving not less than 30 days' prior notice to the
     Bank, prepay any Advance in whole or in part (but if in part, at least the
     equivalent of E100,000) provided that the prepayment is made on the last
     day of an Interest Period for that Advance.

(b)  Subject to Clause 7A.1 (Request to convert Available Currency), no prepaid
     amount may be reborrowed after the Commitment Period.

7.2  VOLUNTARY CANCELLATION

     The Borrower may, by giving not less than 30 days' prior notice to the
     Bank, cancel the undrawn amount of the Facility (if any) in whole or in
     part (but if in part in a minimum amount of E1,000,000 and an integral
     multiple of E100,000) at any time without premium or penalty. No amount of
     the Facility cancelled may subsequently be redrawn or reinstated.

7.3  MANDATORY PREPAYMENT

(a)  The Borrower shall, upon the occurrence of any Trigger Event (as such term
     is defined in sub-clause (b) of this Clause 7.3) deposit all Revenues
     arising from such Trigger Event in the Revenue Account immediately upon
     receipt thereof. On the last day of the Interest Period in which the
     Revenues deriving from a Trigger Event have been deposited into the

<PAGE>

                                       27

     Revenue Account as aforesaid, the Bank shall apply the balance of the
     Revenue Account as follows:

     (i)  Revenues deriving from a Trigger Event in connection with the Astrid
          Plaza Complex Project shall be applied in prepayment of outstanding
          Tranche A Advances;

     (ii) Revenues deriving from a Trigger Event in connection with a Project
          funded by a Tranche B Advance or, as the case may be, Tranche C
          Advance, shall be applied in prepayment of outstanding Tranche B
          Advances or, as the case may be, outstanding Tranche C Advances, to
          the extent only of the Equity Contribution made by the Borrower in
          relation to such Project;

     (iii) Revenues deriving from a Trigger Event in connection with Mango
          Israel shall be applied in prepayment of outstanding Tranche D
          Advances; and

     (iv) Revenues deriving from a Trigger Event in connection with Bea Hotels
          shall be applied, first, in prepayment of outstanding Tranche B
          Advances and, thereafter, in prepayment of outstanding Tranche A
          Advances.

(b)  For the purposes of this Clause 7.3 (Mandatory Prepayment) each of the
     following events constitutes a Trigger Event:

     (i)  any public offering or private placement of any securities of the
          Borrower or any Borrower Funded Subsidiary;

     (ii) a merger or consolidation of the Borrower or any Borrower Funded
          Subsidiary with any other entity (other than in relation to those
          corporate events set out in the letter of consent from the Bank to the
          Borrower, dated 1 November 2005);

     (iii) a sale, assignment, lease, or other disposal of (whether in one
          transaction or a series of transactions) any of the assets (whether in
          whole or in part) of the Borrower or any Borrower Funded Subsidiary,
          including any shareholdings in any such Borrower Funded Subsidiary and
          any intellectual property to any person or entity;

     (iv) a refinancing of any debt of the Borrower;

     (v)  a Refinancing of any debt of any Borrower Funded Subsidiary; or

     (vi) the receipt by the Borrower of any Distributions.

(c)  In the event that any Advance is prepaid by the Borrower (whether in whole
     or in part) in accordance with this Clause 7.3, the amount of the Equity
     Contribution relating to the Project which is the subject of the Trigger
     Event that occurred, shall be reduced by the amount of such prepayment, and
     Schedule 2, Part II (Equity Contributions) shall be amended by the Bank
     accordingly.

<PAGE>

                                       28

7.4  REPAYMENT INTO LOAN ACCOUNT

     Unless otherwise directed by the Bank, all repayments and prepayments of
     amounts outstanding under this Agreement, shall be made into the Loan
     Account.

7.5  MISCELLANEOUS PROVISIONS

(a)  Any notice of prepayment or cancellation under this Agreement is
     irrevocable.

(b)  Any partial prepayment shall be applied, in equal shares to all future
     principal repayment installments.

(c)  Any prepayments under this Agreement shall be made together with accrued
     interest and all other amounts accrued under the Finance Documents
     (including, without limitation pursuant to Clause 24 (Indemnities)).

(d)  No prepayment or cancellation is permitted except in accordance with the
     express terms of this Agreement.

(e)  To the extent that the payment of amounts to the Revenue Account after any
     of the Trigger Events set out in Clause 7.3 (Mandatory Prepayment) is
     dependent upon a distribution being made by a Borrower Funded Subsidiary
     and/or by a Holding Subsidiary, the Borrower shall procure that such
     distributions are made in order that such amounts may be paid by the
     Borrower into the Revenue Account in accordance with Clause 7.3 (Mandatory
     Prepayment).

(f)  No prepayment penalties shall be imposed upon a prepayment in accordance
     with the provisions of this Clause 7.

8.   INTEREST PERIODS

8.1  SELECTION

(a)  Each Advance has successive Interest Periods.

(b)  Each Interest Period shall be a six-month period provided, however, that:

     (i)  the first Interest Period of each Advance shall commence on the date
          of such Advance and shall end on the next Semi-annual Date; and

     (ii) the final Interest Period shall end upon the Final Maturity Date.

8.2  NON-BUSINESS DAYS

     If an Interest Period would otherwise end on a day which is not a Business
     Day, that Interest Period shall instead end on the next Business Day in
     that calendar month (if there is one) or the preceding Business Day (if
     there is not).

9.   INTEREST

<PAGE>

                                       29

9.1  INTEREST RATE

     The rate of interest on each Advance for each of its Interest Periods is
     the rate per annum determined by the Bank to be the aggregate of:

     (a)  the Cost Base; and

     (b)  the Margin.

9.2  DUE DATES

     Accrued interest on each Advance is payable by the Borrower on the last day
     of each Interest Period for that Advance.

9.3  DEFAULT INTEREST

(a)  If the Borrower fails to pay any amount payable by it under the Finance
     Documents, it shall, forthwith on demand by the Bank, pay interest on the
     overdue amount from the due date up to the date of actual payment, after as
     well as before judgment, at the default rate of interest customary at the
     Bank at such time for loans in the Available Currency, provided that the
     default rate shall, in no event, be lower than 5.5% (five and one-half
     percent) above the interest rate due to be paid on the overdue amount in
     accordance with Clause 9.1 (Interest Rate).

(b)  If the Bank determines that deposits in the currency of the overdue amount
     are not at the relevant time being made available by the Reference Banks to
     leading banks in the London interbank market, the default rate will be
     determined by reference to the cost of funds to the Bank from whatever
     sources it may select.

(c)  Default interest shall be due and payable on demand and shall be compounded
     periodically, as customary in the Bank from time to time.

9.4  NOTIFICATION

     The Bank shall promptly notify the Borrower of the determination of a rate
     of interest under this Agreement.

10.  SELECTION OF AVAILABLE CURRENCIES

10.1 SELECTION

(a)  The Borrower may select the Available Currency of a Tranche D Advance, in
     the relevant Drawdown Request.

(b)  Each part of a Tranche D Advance, which is to be denominated in a different
     currency from any other part of that Advance will be treated as a separate
     Tranche D Advance.

10.2 REVOCATION OF CURRENCY

     If before 9.30 a.m. on any Rate Fixing Day:

<PAGE>

                                       30

(a)  it is impracticable for the Bank to fund the Tranche D Advance, in the
     relevant Available Currency during that Interest Period in the ordinary
     course of business in the London interbank market; and/or

(b)  the use of the proposed Available Currency might contravene any law or
     regulation,

     the Bank shall give notice to the Borrower to that effect before 11.00 a.m.
     on that day. In this event:

     (i)  the Borrower and the Bank may agree that the drawdown will not be
          made; or

     (ii) in the absence of agreement and in any other case:

          (1)  the Advance shall be treated as a separate Tranche D Advance,
               during the relevant Interest Period;

          (2)  in the definition of "LIBOR" or "EURIBOR" (insofar as it applies
               to that Advance) in Clause 1.1 (Definitions):

               (A)  there shall be substituted for the time "11.00 a.m." the
                    time "1.00 p.m."; and

               (B)  paragraph (b) of that definition shall apply to the extent
                    applicable.

11.  AMOUNT OF AVAILABLE CURRENCIES

11.1 DRAWDOWNS

     If a Tranche D Advance, is to be drawn down in or, as the case may be, is
     to be converted into an Available Currency (other than US Dollars), the
     amount of that Tranche D Advance, will be determined by converting into
     that Available Currency the Original Dollar Amount of that Tranche D
     Advance, on the basis of the Bank's Spot Rate of Exchange three Business
     Days before its Drawdown Date.

11.2 PREPAYMENTS AND REPAYMENTS

     Any Tranche D Advance in an Available Currency, as well as any interest
     payable thereon, shall be repaid or prepaid in the same Available Currency
     as such Tranche D Advance.

11.3 FACILITY AMOUNT

     If, on the last day of an Interest Period, the Tranche D Advances when
     converted into US Dollars on the basis of the Bank's Spot Rate of Exchange
     exceed the Total Commitment, the Borrower shall prepay such excess amount
     within 3 Business Days.

<PAGE>

                                       31

12.  PAYMENTS

12.1 PLACE

     All payments by the Borrower under the Finance Documents shall be made to
     the Bank to its account at the Facility Office or such other place as the
     Bank may notify to the Borrower for this purpose five (5) Business Days in
     advance.

12.2 FUNDS

     Payments under the Finance Documents to the Bank shall be made for value on
     the due date at such times and in such manner as the Bank may specify to
     the Borrower as being customary at the time for the settlement of
     transactions in the currency of the relevant Advance.

12.3 APPLICATION

     The Bank may apply any amount received by it for the Borrower in or towards
     payment (on the date and in the currency and funds of receipt) of any
     amount due from the Borrower under the Finance Documents or in or towards
     the purchase of any amount of any currency to be so applied.

12.4 CURRENCY

(a)  Amounts payable in respect of costs, expenses and Taxes and the like are
     payable in the currency in which they are incurred.

(b)  Any other amount payable under the Finance Documents is, except as
     otherwise provided in the Finance Documents, payable in Euros.

12.5 SET-OFF AND COUNTERCLAIM

     All payments made by the Borrower under the Finance Documents shall be made
     without set-off or counterclaim.

12.6 NON-BUSINESS DAYS

(a)  If a payment under the Finance Documents is due on a day which is not a
     Business Day, the due date for that payment shall instead be the next
     Business Day in the same calendar month (if there is one) or the preceding
     Business Day (if there is not).

(b)  During any extension of the due date for payment of any principal under the
     Finance Documents, interest is payable on that principal at the rate
     prevailing on the original due date.

12.7 PARTIAL PAYMENTS

(a)  If the Bank receives a payment insufficient to discharge all the amounts
     then due and payable by the Borrower under the Finance Documents, the Bank
     shall apply that

<PAGE>

                                       32

     payment towards the obligations of the Borrower under the Finance Documents
     in the following order:

     (i)  FIRST, in or towards payment of any unpaid fees, costs and expenses of
          the Bank;

     (ii) SECONDLY, in or towards payment of any Finance Charges due but unpaid
          under this Agreement;

     (iii) THIRDLY, in or towards payment of any Financing Principal due but
          unpaid under this Agreement; and

     (iv) FOURTHLY, in or towards payment of any other sum due but unpaid under
          the Finance Documents.

(b)  Paragraph (a) above shall override any appropriation made by the Borrower.

13.  TAXES

     All payments by the Borrower under the Finance Documents shall be made
     without any deduction and free and clear of and without deduction for or on
     account of any Taxes, except to the extent that the Borrower is required by
     law to make payment subject to any Taxes. If any Tax or amounts in respect
     of Tax must be deducted, or any other deductions must be made, from any
     amounts payable or paid by the Borrower, or paid or payable by the Bank
     under the Finance Documents, the Borrower shall pay such additional amounts
     as may be necessary to ensure that the Bank receives a net amount equal to
     the full amount which it would have received had payment not been made
     subject to Tax or other deduction.

14.  MARKET DISRUPTION

14.1 ABSENCE OF QUOTATIONS

     If a Reference Bank does not supply an offered rate by 1.00 p.m. two
     Business Days before the first day of an Interest Period, the applicable
     LIBOR or, as the case may be, EURIBOR shall, subject to Clause 14.2 (Market
     disruption), be determined on the basis of the quotations of the remaining
     Reference Banks.

14.2 MARKET DISRUPTION

     If in relation to any Interest Period the Bank determines (which
     determination shall be conclusive and binding) that:

(a)  by reason of circumstances affecting the London interbank market generally,
     adequate and fair means do not exist for ascertaining LIBOR or EURIBOR for
     that Interest Period; or

(b)  deposits in Euros or Dollars in the amount required for that Interest
     Period are not available to the bank in the London interbank market,

<PAGE>

                                       33

     the Bank shall promptly notify the Borrower accordingly, and no Advance or
     further Advance (as the case may be) shall be made, unless and until an
     alternative basis is agreed in accordance with Clause 14.4 (Alternative
     basis for outstanding loans) below or unless or until the Bank notifies the
     Borrower that such circumstances no longer exist.

14.3 SUSPENSION OF DRAWDOWNS

     If a notification under Clause 14.2 (Market Disruption) applies to an
     Advance which has not been made, that Advance shall not be made. However,
     within five Business Days of receipt of the notification, the Borrower and
     the Bank shall enter into negotiations for a period of not more than 30
     days with a view to agreeing to an alternative basis for the borrowing of
     that and any future Advance.

14.4 ALTERNATIVE BASIS FOR OUTSTANDING ADVANCES

     If a notification under Clause 14.2 (Market Disruption) applies to an
     Advance which is outstanding, then, notwithstanding any other provision of
     this Agreement:

(a)  within five Business Days of receipt of the notification, the Borrower and
     the Bank shall enter into negotiations for a period of not more than 30
     days with a view to agreeing to an alternative basis for determining the
     rate of interest or funding or both applicable to that Advance or any other
     Advances;

(b)  any alternative basis agreed under paragraph (a) above shall be binding on
     the Parties;

(c)  if no alternative basis is agreed, the Bank shall certify, on or before the
     last day of the Interest Period to which the notification relates, an
     alternative basis for maintaining the Advance;

(d)  any such alternative basis may include an alternative method of fixing the
     interest rate, alternative Interest Periods or alternative currencies but
     it must reflect the cost to the Bank of funding its participation in the
     Advance from whatever sources it may select plus the Margin; and

(e)  each alternative basis so certified shall be binding on the Borrower and
     the Bank and treated as part of this Agreement.

15.  INCREASED COSTS

15.1 INCREASED COSTS

(a)  Subject to Clause 15.2 (Exceptions), the Borrower shall forthwith on demand
     by the Bank, providing a computation of the relevant amount in reasonable
     detail, pay to the Bank the amount of any increased cost incurred by it or
     any of its Affiliates as a result of:

     (i)  the introduction of, or any change in, or any change in the
          interpretation or application of, any law or banking regulation; or

     (ii) compliance with any regulation made,

<PAGE>

                                       34

     after the date of this Agreement,

     (including any law or regulation relating to taxation (excluding income
     tax), monetary union, or reserve asset, special deposit, cash ratio,
     liquidity or capital adequacy requirements or any other form of banking or
     monetary control).

(b)  In this Agreement "INCREASED COST" means:

     (i)  an additional cost incurred by the Bank or any of its Affiliates as a
          result of it having entered into, or performing, maintaining or
          funding its obligations under, any Finance Document;

     (ii) that portion of any additional cost incurred by the Bank or any of its
          Affiliates in making, funding or maintaining all or any advances
          comprised in a class of advances formed by or including the Bank's
          participations in any Advance made or to be made under this Agreement
          as is attributable to the Bank making, funding or maintaining those
          participations; and

     (iii) the amount of any payment made by the Bank or any of its Affiliates,
          or the amount of any interest or other return foregone by the Bank or
          any of its Affiliates, calculated by reference to any amount received
          or receivable by the Bank or any of its Affiliates from any other
          Party under this Agreement.

15.2 EXCEPTIONS

     Clause 15.1 (Increased costs) does not apply to any increased cost:

(a)  compensated for by the operation of Clause 13 (Taxes); or

(b)  attributable to any change in the rate of, or change in the basis of
     calculating, Tax on the overall net income of the Bank (or the overall net
     income of a division or branch of the Bank) imposed in the jurisdiction in
     which its principal office or Facility Office is situate.

16.  ILLEGALITY

     If it is or becomes unlawful in any jurisdiction for the Bank to give
     effect to any of its obligations as contemplated by this Agreement or to
     fund or maintain any Advance, then:

(a)  the Bank may notify the Borrower accordingly; and

(b)  (i)  the Borrower shall forthwith prepay that Advance together with all
          other amounts payable by it to the Bank under the Finance Documents
          (including, without limitation, pursuant to Clause 24 (Indemnities));
          and

     (ii) the Bank's undrawn Facility will forthwith be cancelled.

<PAGE>

                                       35

17.  REPRESENTATIONS AND WARRANTIES

17.1 REPRESENTATIONS AND WARRANTIES

     The Borrower makes the representations and warranties set out in this
     Clause 17 (Representations and Warranties) to the Bank, in reliance on
     which the Bank has entered into the Agreement.

17.2 STATUS

(a)  It is a private company, duly organised and validly existing under the laws
     of the State of Israel;

(b)  each member of the Business Group is a company, duly organized and validly
     existing under the laws of the country of its incorporation; and

(c)  each member of the Group has the power to own its assets and carry on its
     business as it is being conducted.

17.3 POWERS AND AUTHORITY

     It, and each member of the Business Group, has the power to enter into and
     perform, and has taken all necessary action to authorise the entry into,
     performance and delivery of, the Finance Documents to which it is or will
     be a party and the transactions contemplated by those Finance Documents.

17.4 LEGAL VALIDITY

     Each Finance Document to which it, or each member of the Business Group, is
     or will be a party constitutes, or when executed in accordance with its
     terms will constitute, its legal, valid and binding obligation enforceable
     in accordance with its terms.

17.5 NON-CONFLICT

     The entry into and performance by it, and each member of the Business
     Group, of, and the transactions contemplated by, the Finance Documents do
     not and will not:-

(a)  conflict with any law or regulation or judicial or official order; or

(b)  conflict with the constitutional documents of any member of the Group; or

(c)  conflict with any document which is binding upon any member of the Group or
     any asset of any member of the Group.

17.6 NO DEFAULT

(a)  No Default is outstanding or might result from the making of any Advance;
     and

(b)  no other event is outstanding which constitutes (or with the giving of
     notice, passage of time, the making of any determination or fulfillment of
     any other applicable condition or

<PAGE>

                                       36

     any combination of the foregoing, might constitute) a default under any
     document which is binding on the Borrower or any member of the Group or any
     asset of the Borrower or any member of the Group.

17.7 AUTHORIZATIONS

     All authorizations required in connection with the entry into, performance,
     validity and enforceability of the Finance Documents and the transactions
     contemplated by the Finance Documents have been obtained or effected and
     are in full force and effect.

17.8 LITIGATION

     No material litigation, arbitration or administrative proceedings are
     current or, to the best of its knowledge, pending or threatened, which
     might, if adversely determined, have a Material Adverse Effect, which are
     not reflected in the Original Group Accounts.

17.9 INFORMATION

(a)  All information provided or delivered by it to the Bank was true, correct
     and complete in all material respects and not misleading in any material
     respect as of the date that it was delivered; and

(b)  all information provided or delivered by it to the Bank did not omit, as at
     the date that it was delivered, any information which, if disclosed, might
     adversely affect the decision of a financial institution considering
     whether to enter into this Agreement.

17.10 FINANCIAL STATEMENTS

     The audited and consolidated financial statements or the reviewed financial
     statements (as the case may be) of the Borrower, BEA Hotels and the
     Borrower Funded Subsidiaries most recently delivered to the Bank (which, at
     the date of this Agreement, are the Original Group Accounts):

     (a)  have been prepared in accordance with GAAP, consistently applied; and

     (b)  give a true and fair view of the financial condition of the Borrower
          and BEA Hotels as of the date to which they were drawn up,

     and there has been no material adverse change in the financial condition of
     the Borrower, BEA Hotels and each of the Borrower Funded Subsidiaries since
     the date on which those financial statements were drawn up.

17.11 COMPLIANCE

     It, and each member of the Business Group, is currently complying with
     applicable laws and regulations in all material respects and there is no
     event or circumstance which would be likely to cause it to cease to comply
     with such laws and regulations in any material respect.

17.12 INSURANCES

<PAGE>

                                       37

     All Insurances are or, at the time they are required to be maintained or
     effected, will be, in full force and effect and so far as it is aware no
     event or circumstance has occurred, nor has there been any omission to
     disclose a fact, which would in either case entitle any insurer to avoid or
     otherwise reduce its liability under any policy relating to the Insurances.

17.13 TITLE AND OWNERSHIP

     The Borrower and each member of the Business Group has good and marketable
     title to its assets (including without limitation, in the case of the
     Borrower, to any securities held by it, directly or indirectly, in any
     Borrower Funded Subsidiary) free and clear of all Security Interests (other
     than Permitted Security Interests).

17.14 STATUS OF SECURITY

     Each Security Document confers the Security Interests it purports to confer
     over all of the assets referred to in it and those Security Interests:

(a)  are not subject to any prior or higher ranking or pari passu Security
     Interests (other than any Permitted Security Interests); and

(b)  are not void or liable to avoidance, due to the insolvency of the Borrower
     on the date of execution of the relevant Security Document, on liquidation
     or bankruptcy, composition or any other similar insolvency proceedings.

17.15 PARI PASSU RANKING

     The Borrower's obligations under the Finance Documents rank and will rank
     at least pari passu with all its other unsecured obligations, except for
     obligations mandatorily preferred by law applying to companies generally.

17.16 INDEBTEDNESS

     The Borrower does not have any outstanding indebtedness to:

     (a)  any of its shareholders, to any holding company of it shareholders or
          to any other member of the Group (other than as approved in writing by
          the Bank); or

     (b)  any person outside the Group, other than the Permitted Financial
          Indebtedness.

17.17 TAXES ON PAYMENTS

     All amounts payable by the Borrower under the Finance Documents shall be
     made free and clear of, and without deduction for, or on account of, any
     Tax.

17.18 STAMP DUTIES

     The Borrower or, as the case may be, each member of the Business Group,
     shall bear and pay all stamp or registration duty or similar taxes or
     charges which shall be payable in respect of any Finance Document.
<PAGE>

                                       38

17.19 IMMUNITY

(a)  The execution by the Borrower of each Finance Document constitutes, and its
     exercise of its rights and performance of its obligations under each
     Finance Document will constitute, private and commercial acts done and
     performed for private and commercial purposes; and

(b)  the Borrower will not be entitled to claim immunity from suit, execution,
     attachment or other legal process in any proceedings taken in the State of
     Israel or any other jurisdiction in relation to any Finance Document.

17.20 JURISDICTION/GOVERNING LAW

     The Borrower's:

     (a)  irrevocable submission under Clause 33 (Jurisdiction) to the
          jurisdiction of the courts of Israel;

     (b)  agreement that this Agreement is governed by Israeli law; and

     (c)  agreement not to claim any immunity to which it or its assets may be
          entitled,

     are legal, valid and binding under the laws of Israel.

17.21 MANGO ISRAEL

     The Borrower has completed the purchase of 100% of the equity and voting
     rights in Mango Israel.

17.22 NO OTHER BUSINESS

     The Borrower shall procure that Astridplaza N.V. has not engaged in any
     business or activities, either alone or in partnership or joint venture
     other than the design, development, construction, financing, ownership (to
     the extent relevant), use, operation and maintenance of the Astrid Plaza
     Complex.

17.23 TIMES FOR MAKING REPRESENTATIONS AND WARRANTIES

     The representations and warranties set out in this Clause 17:

(a)  are made by the Borrower on the date of this Agreement; and

(b)  are deemed to be repeated by the Borrower on each day thereafter with
     reference to the facts and circumstances then existing.

<PAGE>

                                       39

18.  UNDERTAKINGS

18.1 DURATION

     The undertakings in this Clause 18 (Undertakings) remain in force from the
     date of this Agreement for so long as any amount is or may be outstanding
     under this Agreement or the Facility is in force. All of those undertakings
     (and any undertakings or restrictions in any other clause of the Finance
     Documents) are cumulative, and accordingly none of them shall (except to
     the extent expressly stated) be limited by any exception to any other
     undertaking or by implication from the terms of any other undertaking.

18.2 FINANCIAL INFORMATION

(a)  The Borrower shall supply to the Bank:

     (i)  as soon as the same are available (and in any event within 90 days of
          the end of each of its financial years), the audited consolidated
          accounts and financial reports of the Borrower and the audited
          financial statements of BEA Hotels and Astridplaza N.V. and each
          Borrower Funded Subsidiary, for that financial year.

     (ii) as soon as the same are available (and in any event within 60 days of
          the end of the each quarter of each of its financial years) reviewed
          management accounts of the Borrower for that quarter, such management
          accounts being those used for the purpose of consolidation of the
          financial statements of Elbit Medical Imaging Ltd.

     (iii) as soon as the same are available (and in any event within 60 days of
          the end of each quarter) reviewed financial statements for that
          quarter of BEA Hotels, Astridplaza N.V. and each Borrower Funded
          Subsidiary, (including a balance sheet, statements of income and cash
          flow);

     (iv) as soon as the same are available (and in any event within 90 days of
          the end of each financial year), the audited financial statements of
          BEA Hotels, Astridplaza N.V. and each Borrower Funded Subsidiary, each
          financial year.

     (v)  as soon as the same are available (and in any event within 30 days of
          the end of each quarter) quarterly progress reports on the development
          and/or operation of all Pojects.

     (vi) together with the accounts specified in paragraph (a) and (b) above, a
          certificate from the auditors of the Borrower:

          (A)  establishing compliance with Clause 18.21 (Financial covenants)
               which certificate shall, if the Bank requests, also set out in
               reasonable detail computations establishing such compliance; and

          (B)  confirming that the accounts have been prepared in accordance
               with GAAP and Securities Laws Regulations.

<PAGE>

                                       40

     (vii) within 60 days of a written request by the Bank (which shall be
          delivered not more than once in any two consecutive calendar years,
          unless the Bank considers that an event has occurred requiring a
          greater frequency), a valuation addressed to the bank (produced by a
          third party acceptable to the Bank) of the assets of the Borrower.

(b)  The Borrower shall procure that Astridplaza N.V. supply to the Bank, as
     soon as they are available but in any event within 15 days after the end of
     each calendar month, one copy of the monthly hotel operating accounts of
     Astridplaza N.V..

18.3 OTHER INFORMATION

(a)  The Borrower shall supply to the Bank:

     (i)  all documents despatched by it to its shareholders (or any class of
          them) or by it to its creditors (or any class of them) at the same
          time as they are despatched;

     (ii) promptly upon becoming aware of them, details of any litigation,
          arbitration or administrative proceedings of a material nature
          relating to it, BEA Hotels or Astridplaza N.V. which are current,
          threatened or pending, and, together, in each case, with details of
          how it proposes to conduct the litigation, arbitration or proceedings
          or otherwise resolve the dispute in question;

     (iii) reasonably promptly, and in any case, within 20 Business Days such
          further information in the possession or control of the Group
          regarding its financial condition and operations as the Bank may
          reasonably request;

     (iv) forthwith, details of any event of which it is aware which may have a
          Material Adverse Effect; and

     (v)  promptly, upon the earlier of:

          (A)  the signing of a term sheet for a Refinancing by a Borrower
               Funded Subsidiary or any other event constituting a Trigger
               Event; or

          (B)  the finalisation of commercial terms for such Refinancing by a
               Borrower Funded Subsidiary (such notification, for the avoidance
               of doubt, shall not in itself constitute a Trigger Event) or such
               other Trigger Event,

          all documents and details related thereto.

(b)  In the event that an Event of Default has occurred, the Borrower shall
     allow the Bank appropriate and reasonable access to its records and
     accounts.

18.4 NOTIFICATION OF DEFAULT

     The Borrower shall notify the Bank of:

     (a)  any Default (and the steps, if any, being taken to remedy it); and

<PAGE>

                                       41

     (b)  any event of default or potential event of default arising under any
          loan agreement entered into by any Subsidiary,

     immediately upon it becoming aware thereof.

18.5 COMPLIANCE CERTIFICATES

     The Borrower shall supply to the Bank promptly at any time, if the Bank so
     requests, a certificate signed by two if its senior officers certifying
     that no Default is outstanding or, if a Default is outstanding, specifying
     the Default and the steps, if any, being taken to remedy it.

18.6 AUTHORISATIONS

     The Borrower shall promptly obtain, maintain and comply with the terms of
     any authorisation required at the relevant time under any law or regulation
     to enable it to perform its obligations under, or for the validity or
     enforceability of, any Finance Document.

18.7 PARI PASSU RANKING

     The Borrower shall procure that its obligations under the Finance Documents
     do and will rank at least pari passu with all its other present and future
     unsecured obligations, except for obligations mandatorily preferred by law
     applying to companies generally.

18.8 NEGATIVE PLEDGE

(a)  The Borrower shall not and shall procure that no member of the Business
     Group shall create or permit to subsist any Security Interest on any of its
     present or future assets.

(b)  Paragraph (a) does not apply to any Permitted Security Interest.

(c)  If the Borrower creates or permits to subsist any Security Interest on any
     of its assets contrary to paragraph (a) above, all of the obligations of
     the Borrower under this Agreement shall, to the extent permissible under
     applicable law, automatically and immediately be secured upon the same
     assets, ranking at least pari passu with the other obligations secured on
     those assets.

18.9 TRANSACTIONS SIMILAR TO SECURITY

(a)  The Borrower shall not, and shall procure that no member of the Business
     Group shall, without the prior consent of the Bank:

     (i)  sell, transfer or otherwise dispose of any of its assets on terms
          whereby it is or may be leased to or re-acquired or acquired by a
          member of the Group or any of its related entities; or

     (ii) sell, transfer or otherwise dispose of any of its receivables on
          recourse terms, except for the discounting of bills or notes in the
          ordinary course of trading,

<PAGE>

                                       42

          in circumstances where the transaction is entered into primarily as a
          method of raising finance.

(b)  Paragraph (a) does not apply to Permitted Security Interests.

18.10 BORROWINGS

     The Borrower shall not, and shall procure that no member of the Business
     Group shall,

     (a)  incur any Financial Indebtedness other than the Permitted Financial
          Indebtedness; or

     (b)  incur any Financial Indebtedness to any Subsidiary unless such
          Subsidiary has first signed a Subordination Agreement in favour of the
          Bank, substantially in the form of Schedule 9 (Form of Subordination
          Agreement).

18.11 DISPOSALS

(a)  The Borrower shall not, and shall procure that no member of the Business
     Group shall, either in a single transaction or in a series of transactions,
     whether related or not and whether voluntarily or involuntarily, sell,
     transfer, grant or lease or otherwise dispose of all or any substantial
     part of the assets of the Business (including tax losses).

(b)  Paragraph (a) does not apply to:

     (i)  disposals made in the ordinary course of business of the disposing
          entity; or

     (ii) disposals of assets in exchange for other assets comparable or
          superior as to type, value and quality;

     (iii) disposals of obsolete or surplus assets no longer required for the
          relevant business;

     (iv) the payment of cash as consideration for the acquisition of any asset
          or service;

     (v)  Permitted Security Interests; or

     (vi) any other disposal approved by the Bank (such approval not to be
          unreasonably withheld).

18.12 MERGERS AND ACQUISITIONS

     The Borrower shall not, and shall procure that no other member of the
     Business Group will enter into any amalgamation, demerger, merger or
     reconstruction.

18.13 COMPLIANCE WITH LAWS AND PAYMENT OF TAXES

<PAGE>

                                       43

(a)  The Borrower shall comply (and shall procure that each other member of the
     Group complies) with all laws and regulations applicable to it to the
     extent that failure to do so would have a Material Adverse Effect.

(b)  The Borrower shall, and shall procure that each member of the Business
     Group shall:

     (i)  file, or procure the filing of, all tax and informational returns that
          are required to be filed by it in any jurisdiction; or

     (ii) pay all its taxes when due, except to the extent the taxes are
          contested in good faith and by appropriate means, and a reserve
          reasonably regarded as adequate has been set aside for payment of
          those taxes.

18.14 CHANGE OF BUSINESS

     The Borrower shall not, and shall procure that no other member of the
     Business Group shall engage in any business or activities other than the
     Business and any business incidental to its implementation, other than with
     the approval of the Bank (such approval not to be unreasonably withheld).

18.15 SHARE CAPITAL

     The Borrower shall not, and shall procure that no member of the Business
     Group shall, without the prior consent of the Bank:

     (a)  purchase, cancel or redeem any of its share capital or that of BEA
          Hotels; or

     (b)  issue any further securities if as a result of such the Shareholder
          would hold, directly or indirectly, less than 50.1% (fifty and
          one-tenth of one percent) of the issued share capital of the Borrower.

18.16 DISTRIBUTIONS

(a)  Except as required by law, the Borrower shall not allow, nor shall it allow
     any member of the Business Group to allow, any restriction to be placed on
     the ability of any member of the Business Group (other than the Borrower)
     to declare or pay any Distribution, other than pursuant to the terms of
     senior construction facilities taken by any subsidiary in relation to a
     Project, without the prior written consent of the Bank.

(b)  Provided that no Event of Default has occurred, Borrower shall not be
     obliged to Distribute any Free Funds generated by the Projects and/or the
     Business.

18.17 INSURANCES

     The Borrower shall, and shall procure that each member of the Group shall,
     maintain insurance with financially sound and reputable insurers with
     respect to its assets of an insurable nature against such risks and in such
     amounts as are normally maintained by persons carrying on the same or a
     similar class of business.

<PAGE>

                                       44

18.18 CONDUCT OF BUSINESS

     The Borrower shall:

     (a)  in all material respects conduct its business in a reasonable and
          prudent manner in accordance with all applicable laws and regulations
          and the terms of the Finance Documents; and

     (b)  meet all of its material obligations as they fall due; and

     (c)  promptly perform its material obligations, and enforce its material
          rights under each agreement to which it is a party, to the extent that
          failure to do so would have Material Adverse Effect.

18.19 USE OF PROCEEDS

     The Borrower shall apply the proceeds of the Advances wholly and
     exclusively for the purposes set out in Clause 3 (Purpose).

18.20 AMENDMENTS AND AGREEMENTS

(a)  The Borrower shall not, directly or indirectly, terminate, cancel or
     suspend, or permit or consent to any termination, cancellation or
     suspension of, or enter into or consent to or permit an assignment of the
     rights or obligations of any party to, any material agreement pertaining to
     the Business to which it is a party without receiving the prior written
     consent of the Bank.

(b)  The Borrower shall not, directly or indirectly, amend, modify, supplement
     or waive, or permit or consent to the amendment, modification, supplement
     or waiver of, any of the provisions of, or give any consent under, any
     material agreement pertaining to the Business to which it is a party
     without receiving the prior written consent of the Bank.

18.21 FINANCIAL COVENANTS

(a)  The Borrower shall procure that

     (i)  the ratio of Shareholder's Equity to Balance Sheet Value is at all
          times greater than 1:4;

     (ii) on the last day of each Interest Period, the actual Debt Service Cover
          Ratio for the preceding twelve (12) month period ending on the
          previous 30 June or 31 December is no less than 1.2;

     (iii) the RevPar will be not less than:

          (A)  Euro 52, for the financial year 2006

          (B)  Euro 56, for the financial year 2007; and

          (C)  Euro 60, for the financial year 2008 and thereafter.

<PAGE>

                                       45

(b)  In this Clause 18.21:

     "REVPAR" means the total revenue earned from room income per total
     available rooms for any given period, to be calculated by multiplying
     average room rate achieved in relation to the Astrid Plaza Hotel (forming
     part of the Astrid Plaza Complex) for any given period by the average room
     occupancy rate at the Astrid Plaza Hotel for that given period.

     "SHAREHOLDERS EQUITY" shall be calculated in accordance with GAAP.

     "BALANCE SHEET VALUE" means the total sum of the balance sheet as shown in
     the latest published audited consolidated balance sheet of the Group.

(c)  This covenant shall be calculated on the basis of the latest audited or
     reviewed consolidated balance sheet of the Borrower provided to the Bank
     pursuant to this Agreement.

(d)  The undertaking specified in paragraph (a)(ii) above shall be calculated
     for each successive 12 month period.

18.22 MANAGEMENT FEES

     The Borrower shall procure that any management fees paid by any member of
     the Business Group to any entity other than:

     (a)  a Holding Subsidiary or any of its Subsidiaries;

     (b)  the Borrower or any of its Subsidiaries; or

     (c)  a Holding Company of the Borrower or any of its Subsidiaries,

     shall be reasonable and in any event shall be in an amount not exceeding 5%
     (five per cent) of: (a) the development, financing and construction costs
     of any Project prior to completion which is being executed by such member
     of the Business Group; or (b) the gross revenues of such member of the
     Business Group.

18.23 MANGO ISRAEL

(a)  The Borrower shall maintain ownership of 100% of the shares in Mango
     Israel.

(b)  The Borrower shall procure that Mango Israel shall maintain all of the
     franchise rights to sell and distribute MANGO-branded clothing and footwear
     in Israel.

19.  DEFAULT

19.1 EVENTS OF DEFAULT

<PAGE>

                                       46

     Each of the events set out in Clauses 19.2 to 19.17 (inclusive) of this
     Clause 19 is an Event of Default (whether or not caused by any reason
     whatsoever outside the control of the Group or any other person).

19.2 NON-PAYMENT

     The Borrower does not within three (3) Business Days of the due date pay
     any amount payable by it under the Finance Documents at the place and in
     the currency in which it is expressed to be payable.

19.3 BREACH OF OTHER OBLIGATIONS

(a)  The Borrower or, where applicable, any member of the Business Group does
     not comply with any provision under any of Clauses 18.4 (Notification of
     Default), 18.7 (Pari Passu Ranking), 18.8 (Negative Pledge), 18.9
     (Transactions Similar to Security), 18.10 (Borrowings), 18.11 (Disposals),
     18.12 (Mergers and acquisitions), 18.14 (Change of Business), 18.16
     (Distributions) or 18.21 (Financial Covenants).

(b)  Any member of the Business Group does not comply with any provision of the
     Finance Documents (other than those referred to in Clauses 19.2 and
     19.3(a)) and, if capable of remedy, that breach is not remedied within 10
     (ten) days of the earlier of receipt of notice from the Bank specifying the
     breach and the member of the Business Group first becoming aware of the
     failure.

19.4 MISREPRESENTATION

     A representation, warranty or statement made or repeated in or in
     connection with any Finance Document or in any document delivered by or on
     behalf of any member of the Group under or in connection with any Finance
     Document is incorrect in any material respect when made or deemed to be
     made or repeated and shall continue to be incorrect for a period of ten
     (10) days from the date such representation or warranty is or is deemed to
     have been made or repeated.

19.5 LEGAL VALIDITY

     Any Finance Document is not or ceases to be a valid, binding and
     enforceable obligation of, or is repudiated by, any member of the Business
     Group or becomes void or unenforceable.

19.6 CROSS-DEFAULT

(a)  (i)  Any Financial Indebtedness of the Business Group is not paid when due
          or within the lesser of:

          (A)  any originally applicable grace period; and

          (B)  seven (7) Business Days;

     (ii) an event of default howsoever described (or any event which with the
          giving of notice, lapse of time, determination of materiality or
          fulfilment of any other applicable condition or any combination of the
          foregoing, would constitute such

<PAGE>

                                       47

          an event of default) occurs under any document relating to such
          Financial Indebtedness of the Business Group;

     (iii) any Financial Indebtedness of the Business Group becomes prematurely
          due and payable or is placed on demand as a result of an event of
          default (howsoever described) under the document relating to that
          Financial Indebtedness;

     (iv) any commitment for, or underwriting of, any such Financial
          Indebtedness of the Business Group is cancelled or suspended as a
          result of an event of default (howsoever described) under the document
          relating to that Financial Indebtedness;

     (v)  any Security Interest securing any Financial Indebtedness over any
          asset of the Business Group becomes enforceable.

     provided that where such event relates to a member of the Business Group
     (other than the Borrower or a Holding Subsidiary) such event shall only
     constitute an Event of Default if it has a Material Adverse Effect.

19.7 INSOLVENCY

In the event that any member of the Business Group:

(i)  is, or is deemed unable to pay its debts as they fall due;

(ii) is insolvent or admits inability to pay its debts as they fall due;

(iii) suspends making payments on all or any class of its debts or announces an
     intention to do so;

(iv) a moratorium is declared in respect of any of its indebtedness; or

(v)  by reason of financial difficulties, begins negotiations with one or more
     of its creditors with a view to the readjustment or rescheduling of any of
     its indebtedness.

provided that where such event relates to a member of the Group other than the
Borrower or a Holding Subsidiary, such event shall only constitute an Event of
Default if it has a Material Adverse Effect.

19.8 INSOLVENCY PROCEEDINGS

(a)  Any step (including petition, proposal or convening a meeting) is taken
     with a view to a composition, assignment or arrangement with any creditors
     of the Group; or

(b)  a meeting of members of any member of the Group is convened for the purpose
     of considering any resolution for (or to petition for) its winding-up or
     for its administration or any such resolution is passed; or

(c)  any person presents a petition for the winding-up or for the administration
     of any member of the Group which is not withdrawn or set aside within
     twenty one (21) days; or

<PAGE>

                                       48

(d)  an order for the winding-up or administration of any member of the Group is
     made;

provided that where such event relates to a member of the Group other than the
Borrower or a Holding Subsidiary such event shall only constitute an Event of
Default if it has a Material Adverse Effect.

19.9 APPOINTMENT OF RECEIVERS AND MANAGERS

(a)  Any liquidator, trustee in bankruptcy, judicial custodian, compulsory
     manager, receiver, administrative receiver, administrator or the like is
     appointed in respect of any member of the Group or any material part of its
     assets which is not withdrawn or set aside within twenty one (21) days; or

(b)  the directors of any member of the Group request the appointment of a
     liquidator, trustee in bankruptcy, judicial custodian, compulsory manager,
     receiver, administrative receiver, administrator or the like; or

(c)  any other steps are taken to enforce any Security Interest over any
     material part of the assets of any member of the Group;

provided that where such event relates to a member of the Group other than the
Borrower or a Holding Subsidiary such event shall only constitute an Event of
Default if it has a Material Adverse Effect.

19.10 CREDITORS' PROCESS

     Any attachment, sequestration, distress or execution affecting any material
     asset of any member of the Group is issued and not discharged within ninety
     (90) days or such shorter period as may render such asset liable to
     forfeiture, seizure or sale provided that where such event relates to a
     member of the Group (other than the Borrower or a Holding Subsidiary) such
     event shall only constitute an Event of Default if it has a Material
     Adverse Effect.

19.11 CESSATION OF BUSINESS

     (a)  The Borrower or a Holding Subsidiary ceases, or threatens to cease, to
          carry on all or a substantial part of its business.

     (b)  Any member of the Group (other than the Borrower or a Holding
          Subsidiary) ceases, or threatens to cease, to carry on all or a
          substantial part of its business, provided that such event shall only
          constitute an Event of Default if it has a Material Adverse Effect.

19.12 ILLEGALITY

     It becomes unlawful for any member of the Group to perform any of its
     obligations under the Finance Documents.

<PAGE>

                                       49

19.13 EFFECTIVENESS OF SECURITY

     Any Security Document entered into by any member of the Group is not or
     ceases to be effective or is alleged by any such person to be ineffective
     for any reason.

19.14 CHANGE IN CONTROL

     There is a change of control without the prior written consent of the Bank,
     as a result of which:

     (a)  the Shareholder holds, directly or indirectly, less than fifty and
          one-tenth percent (50.1%) of the issued share capital of the Borrower;
          or

     (b)  the Borrower holds, directly or indirectly, less than one hundred
          percent (100%) of the issued share capital of any Holding Subsidiary.

19.15 ABANDONMENT OR NATIONALISATION

(a)  The Group abandons any of its material assets.

(b)  Any government or any Agency of that government takes, or states officially
     that it proposes to take, any step with a view to the seizure,
     expropriation, nationalisation or acquisition (whether compulsory or
     otherwise, in whole or in part, and whether or not for fair compensation)
     of any member of the Group or any of its assets, in a manner or to an
     extent that has a Material Adverse Effect.

19.16 MATERIAL ADVERSE EFFECT

     Any event or series of events occurs, which, in the opinion of the Bank, is
     likely to have a Material Adverse Effect.

19.17 MANGO ISRAEL

(a)  The Borrower fails to maintain ownership of 100% of the shares in Mango
     Israel.

(b)  Mango Israel fails to maintain all of the franchise rights to sell and
     distribute MANGO-branded clothing and footwear in Israel.

19.18 ACCELERATION

On and at any time after the occurrence of an Event of Default the Bank may, by
notice to the Borrower:

(a)  cancel the Total Commitment; and/or

(b)  demand that all or part of the outstanding Advances, together with accrued
     interest and all other amounts accrued under the Finance Documents
     (including without limitation

<PAGE>

                                       50

     pursuant to Clause 24 (Indemnities)) be immediately due and payable,
     whereupon they shall become immediately due and payable;

(c)  demand that all or part of the outstanding Advances together with accrued
     interest and all other amounts accrued under the Finance Documents
     (including without limitation pursuant to Clause 24 (Indemnities)) be
     payable on demand, whereupon they shall immediately become payable on
     demand by the Bank; and/or

(d)  require the Borrower to procure that all BEA Hotels Loans are forgiven and
     that BEA Hotels has no further obligations or liabilities thereunder.

20.  ACCOUNTS

20.1 OPENING OF ACCOUNTS

(a)  So long as the Facility remains in force or any Advance is outstanding, the
     Borrower shall maintain in its own name at the relevant branch of the Bank
     the following accounts, which shall be charged by way of a first ranking
     fixed charge in favour of the Bank as security:

     (i)  the Loan Account; and

     (ii) the Revenue Account.

(b)  The relevant branch of the Bank is, at the date of this Agreement, for the
     Loan Account, the Debt Service Reserve Account and the Revenue Account, the
     Facility Office. The Bank may change the place of the relevant branch (or
     the relevant branch to apply to a particular Account) by notice to the
     Borrower and any other party that is required to pay sums into such
     Account.

(c)  The following provisions of this Clause shall govern the operation of the
     Accounts, provided that:

     (i)  the Borrower shall also complete the Bank's standard account mandate
          form for each Account; and

     (ii) the Bank's standard terms and conditions, if any, applicable to
          similar accounts maintained with the Bank and in force from time to
          time shall apply to the operation of the Accounts and the rights and
          obligations of the Bank and the Borrower in relation thereto (subject
          to any exceptions specifically agreed, in writing between Borrower and
          the Bank).

     Should there be any conflict between the provisions of this Agreement and
     such standard terms and conditions, then this Agreement shall prevail. The
     Bank shall send the Borrower a copy of any new set of standard terms and
     conditions promptly following their issuance.

(d)  The Bank and the Borrower may agree that a further account(s) is/are
     required to deal with any category of payments or receipts not contemplated
     by the following provisions of this Clause 20 (Accounts). In such case, the
     Bank and the Borrower shall agree upon

<PAGE>

                                       51

     procedures and rules to govern the operation of such further account or
     accounts in a supplement to this Clause and, once agreed, such supplement
     shall be deemed to form part of this Clause 20 (Accounts). The Bank shall
     send a copy of any such supplement to the Borrower.

20.2 LOAN ACCOUNT

(a)  The Borrower directs the Bank to pay the proceeds of each Advance (other
     than any Advance drawn down for the purposes of paying Finance Charges)
     into the Loan Account on the Drawdown Date relating thereto and the Bank
     shall comply with this instruction. Except as otherwise specified in this
     Clause, no other sums shall be paid into the Loan Account without the prior
     agreement of the Bank.

(b)  Whenever the Borrower requires to make a withdrawal from the Loan Account,
     it shall give to the Bank not less than three (3) Business Days' notice of
     such withdrawal in the form of the Disbursement Request (or in such other
     form as the Bank shall require). Any such withdrawal may only be for the
     purposes of:

     (i)  funding Equity Contributions in terms of Clause 3 above; or

     (ii) as the Bank may otherwise permit in writing.

(c)  Each Disbursement Request shall specify the bank and account number of the
     payee to whom such payment is made and the Bank shall transfer the sum in
     question to such account.

20.3 REVENUE ACCOUNT

     The Borrower shall procure that all Revenues which are required in order to
     execute a mandatory prepayment (in accordance with the terms of Clause 7.3
     (Mandatory Prepayment) above) are paid directly to the Revenue Account.

20.4 GENERAL PROVISIONS RELATING TO ACCOUNTS

(a)  The Borrower undertakes to ensure that no Account is closed without the
     prior written consent of the Bank.

(b)  Without prejudice to any other rights of the Bank under the Financing
     Documents, if at any time a Default has occurred or is continuing, the
     Borrower shall not make any withdrawals from the Accounts (other than in
     order to repay principal amounts outstanding under the Facility or
     Financing Charges due to the Bank), without the prior written consent of
     the Bank.

(c)  Each Account shall earn interest at such rate(s) as may be agreed from time
     to time by the Borrower and the Bank. All interest earned on the balance
     standing to the credit of an Account shall be credited to the Account in
     question and the Bank is irrevocably authorised and instructed so to credit
     such interest.

(d)  No Account may go into overdraft and the Borrower shall not issue an
     instruction with respect to an Account, and the Bank shall not comply with
     an instruction, to the extent that it would cause the relevant Account to
     go into overdraft.

<PAGE>

                                       52

(e)  The Borrower shall not create or permit to subsist any Security Interest on
     all or any part of the Accounts, other than any Security Interests created
     by the Security Documents, nor assign transfer or otherwise dispose of all
     or any part of its right or title to or interest in the Accounts.

(f)  The Borrower irrevocably and unconditionally authorises and instructs the
     Bank to act upon instructions received by it from the Borrower and to make
     any other appropriations, payments and transfers into or between any of the
     Accounts which this Agreement expressly provides should be made by the
     Bank.

(g)  To the extent that the Borrower gives any instructions (but only to this
     extent), the Bank acts as agent for the Borrower.

(h)  No person other than the Bank and/or the Borrower may give any instructions
     or requests to the Bank for any payments, transfers or withdrawals from any
     of the Accounts.

(i)  No amounts may be withdrawn or transferred from any of the Accounts, and
     the Borrower may not give any instructions in relation to any of the
     Accounts, except in accordance with the express terms of this Agreement.

(j)  The Borrower shall ensure that all moneys paid to it from an Account in
     response to any instructions given by it are applied only in discharging
     the obligations in respect of which they were paid from the relevant
     Account (or as otherwise permitted under this Agreement).

(k)  The Bank:

     (i)  shall be entitled to act in reliance on any certificate or document
          delivered to it in support of any of the matters contemplated by this
          Clause 20 (Accounts); and

     (ii) shall not be obliged to enquire into any of the underlying
          transactions or to verify any of the contents of any such certificate
          or document.

(l)  The Borrower acknowledges that neither any insufficiency of funds in the
     Accounts (or any of them), nor any inability to apply any funds in the
     Accounts (or any of them) against any or all amounts owing under this
     Agreement, shall at any time limit, reduce or otherwise affect the
     Borrower's payment obligations under this Agreement.

(m)  If on any date the Bank is requested or required to make one or more
     payments from any of the Accounts (not being a sum payable to the Bank) and
     there is an insufficient balance on that Account to meet those payments in
     full, then the Bank may select in which order and to what extent such
     payments shall be made, but without liability or responsibility as a
     consequence of such application.
<PAGE>

                                       53

21.  SECURITY

21.1 EFFECTIVE DATE

     The Borrower shall ensure that the security arrangements set forth in this
     Clause 21 (Security) are in effect and enforceable on the date of signing
     of this Agreement, unless otherwise agreed in writing by the Bank.

21.2 SECURITY

     The Pledges and Charges over Accounts shall serve as security for the
     obligations of the Borrower under this Agreement, however, the recourse of
     the Bank shall not be limited to such security.

22.  FEES AND EXPENSES

22.1 ARRANGEMENT FEE

     The Borrower shall pay to the Bank an arrangement fee (which shall not be
     paid out of Advances) in the amount of US$450,000 (four hundred and fifty
     thousand US Dollars) payable in three equal installments on the 31st June,
     2005, 31st September, 2005 and 31st December 2005. The parties acknowledge
     that, as of the date hereof, the first two installments (due on 31st June,
     2005 and 31 September, 2005) have been paid by the Borrower and duly
     received by the Bank.

22.2 INITIAL AND SPECIAL COSTS

     The Borrower shall forthwith on demand pay the Bank the amount of all
     reasonable costs and expenses (including legal fees in a pre-agreed amount)
     incurred by the Bank in connection with:

(a)  the drafting, negotiation and closing of:

     (i)  the Finance Documents and any other documents referred to in this
          Agreement; and

     (ii) any other Finance Document executed after the date of this Agreement;
          and

(b)  the examination of any future Project in respect of which an Equity
     Contribution is to be made; and

(c)  any amendment, waiver, consent or suspension of rights (or any proposal for
     any of the foregoing) requested by or on behalf of the Borrower and
     relating to a Finance Document or a document referred to in any Finance
     Document.

<PAGE>

                                       54

22.3 ENFORCEMENT COSTS

     The Borrower shall forthwith on demand pay to the Bank the amount of all
     costs and expenses (including legal fees) incurred by it in connection with
     the enforcement of, or the preservation of any rights under, any Finance
     Document.

22.4 RETENTION

     The Bank may:

(a)  retain sums from the amount of any Advance advanced on a Drawdown Date; or

(b)  apply amounts held in any Account,

     toward payment in full of any fees, costs and expenses referred to in this
     Clause 22 (Fees and Expenses).

22.5 VAT

     Any fee or expense referred to in this Clause 22 (Fees and Expenses) is
     exclusive of any applicable value added tax or any other tax which might be
     chargeable in connection with that fee or expense. If any value added tax
     or other tax is so chargeable, it shall be paid by the Borrower at the same
     time as it pays the relevant fee or expense.

23.  STAMP DUTIES

     The Borrower shall pay, and forthwith on demand indemnify the Bank against
     any liability it incurs in respect of, any stamp, registration or similar
     tax which is or becomes payable in connection with the entry into,
     registration, recording, performance or enforcement of any Finance Document
     and any ancillary documentation relating thereto.

24.  INDEMNITIES

24.1 CURRENCY INDEMNITY

(a)  If the Bank receives an amount in respect of the Borrower's liability under
     the Finance Documents or if that liability is converted into a claim,
     proof, judgment or order in a currency other than the currency (the
     "CONTRACTUAL CURRENCY") in which the amount is expressed to be payable
     under the relevant Finance Document:

     (i)  the Borrower shall indemnify the Bank as an independent obligation
          against any loss or liability arising out of or as a result of the
          conversion;

     (ii) if the amount received by the Bank, when converted into the
          contractual currency at a market rate in the usual course of its
          business is less than the amount owed in the contractual currency, the
          Borrower shall forthwith on demand pay to the Bank an amount in the
          contractual currency equal to the deficit; and

     (iii) the Borrower shall forthwith on demand pay to the Bank any exchange
          costs and taxes payable in connection with any such conversion.

<PAGE>

                                       55

(b)  The Borrower waives any right it may have in any jurisdiction to pay any
     amount under the Finance Documents in a currency other than that in which
     it is expressed to be payable.

24.2 OTHER INDEMNITIES

     The Borrower shall forthwith on demand indemnify the Bank against any loss
     or liability which the Bank incurs as a consequence of:

(a)  the occurrence of any Default;

(b)  the operation of Clause 19.21 (Acceleration);

(c)  any payment of principal or an overdue amount being received from any
     source otherwise than on the last day of a relevant Interest Period or
     other Interest Period provided for in Clause 9.3 (Default Interest)
     relative to the amount so received; or

(d)  (other than by reason of negligence or default by the Bank) an Advance not
     being made after the Borrower has delivered a request for the Advance, or
     an Advance (or part of the Advance) not being prepaid in accordance with a
     notice of prepayment.

     The Borrower's liability in each case includes any loss of margin or other
     loss or expense on account of funds borrowed, contracted for or utilised to
     fund any amount payable under any Finance Document, any amount repaid or
     prepaid or any Advance.

25.  EVIDENCE AND CALCULATIONS

25.1 ACCOUNTS

     Accounts maintained by the Bank in connection with this Agreement are prima
     facie evidence of the matters to which they relate.

25.2 CERTIFICATES AND DETERMINATIONS

     Any certification or determination by the Bank of a rate or amount under
     the Finance Documents is, in the absence of manifest error, prima facie
     evidence of the matters to which it relates.

25.3 INTEREST CALCULATIONS

     Interest accrues from day to day and is calculated on the basis of the
     actual number of days elapsed and a year of 360 days.

26.  AMENDMENTS AND WAIVERS

26.1 AMENDMENTS

     Any term of the Finance Documents may be amended or waived with the
     agreement of the Borrower and the Bank.

<PAGE>

                                       56

26.2 WAIVERS AND REMEDIES CUMULATIVE

     The rights of the Bank under the Finance Documents:

(a)  may be exercised as often as necessary;

(b)  are cumulative and not exclusive of its rights under the general law; and

(c)  may be waived only in writing and specifically.

     Delay in exercising or non-exercise of any such right is not a waiver of
     that right.

27.  CHANGES TO THE PARTIES

27.1 TRANSFERS BY BORROWER

     The Borrower may not assign, transfer, novate or dispose of any of, or any
     interest in, its rights and/or obligations under the Finance Documents,
     other than with the prior written consent of the Bank.

27.2 TRANSFERS BY BANK

(a)  The Bank may at any time, at its sole discretion and without the need for
     consent from the Borrower, assign, transfer, sell or novate ("TRANSFER")
     all or any part of the Facility and/or all or any of its rights and/or
     obligations under this Agreement and/or the Security Documents to any other
     person or entity (whether Israeli or from outside Israel) ("ASSIGNEE
     LENDER").

(b)  The Borrower shall execute and do all such transfers, assignments,
     novations, assurances, acts and things as the Bank may require for
     perfecting and completing any such assignment, transfer or novation, and
     releasing the Bank from and imposing on the Assignee Lender the Bank's
     obligations under this Agreement to the extent the same are transferred,
     assigned or novated. All agreements, representations and warranties made in
     this agreement shall survive any assignment made pursuant to this clause
     and shall also inure to the benefit of all Assignee Lenders.

27.3 REFERENCE BANKS

     If a Reference Bank ceases to exist, the Bank shall (in consultation with
     the Borrower) appoint another bank or financial institution to replace that
     Reference Bank.

28.  DISCLOSURE OF INFORMATION

     Subject to all applicable laws and regulations and the execution by such
     party of a confidentiality agreement in form and substance satisfactory to
     the Bank, the Bank may at any time, disclose to its Affiliates, any
     Assignee Lender, any person with whom it is proposing to enter, or has
     entered into negotiations with respect to any kind of transfer,
     participation or other agreement in relation to this Agreement, or any
     professional advisor of such person, or rating agency:

<PAGE>

                                       57

     (a)  a copy of any Finance Document; and

     (b)  any information which the Bank has acquired under or in connection
          with any Finance Document which it deems relevant to transfer in
          connection with a proposed Transfer.

29.  SET-OFF

     The Bank may set off any matured obligation owed by the Borrower under the
     Finance Documents (to the extent beneficially owned by the Bank) against
     any obligation (whether or not matured) owed by the Bank to the Borrower,
     regardless of the place of payment, booking branch or currency of either
     obligation. If the obligations are in different currencies, the Bank may
     convert either obligation at a market rate of exchange in its usual course
     of business for the purpose of the set-off. If either obligation is
     unliquidated or unascertained, the Bank may set off an amount estimated by
     it in good faith to be the amount of that obligation.

30.  SEVERABILITY

     If a provision of any Finance Document is or becomes illegal, invalid or
     unenforceable in any jurisdiction, that shall not affect:

(a)  the validity or enforceability in that jurisdiction of any other provision
     of the Finance Documents; or

(b)  the validity or enforceability in other jurisdictions of that or any other
     provision of the Finance Documents.

31.  COUNTERPARTS

     Each Finance Document may be executed in any number of counterparts, and
     this has the same effect as if the signatures on the counterparts were on a
     single copy of the Finance Document.

32.  NOTICES

32.1 GIVING OF NOTICES

     All notices or other communications under or in connection with the Finance
     Documents shall be given in writing and, unless otherwise stated may be
     made by letter or facsimile. Any such notice will be deemed to be given as
     follows:

(a)  if by letter, when delivered personally or on actual receipt; and

(b)  if by facsimile, when received in legible form.

     However, a notice given in accordance with the above but received on a
     non-working day or after business hours in the place of receipt will only
     be deemed to be given on the next working day in that place.

<PAGE>

                                       58

32.2 ADDRESSES FOR NOTICES

(a)  The address and facsimile number of the Borrower are:

     Elscint Limited
     13 Mozes Street
     Tel Aviv, 67442

     Facsimile: +972 3 696 2022
     Attention: Uri Levin

     or such other as the Borrower may notify to the Bank by not less than five
     Business Days' notice.

(b)  The address and facsimile number of the Bank are:

     Bank Hapoalim B.M.
     Head Office, Corporate Business Division
     41-45 Rothschild St.
     Tel-Aviv, 65874
     Israel

     Facsimile: +972 3 567 3154
     Attention: Manager of the Infrastructure, Tourism and Capital Markets

     with a copy to:

     Herzog, Fox & Neeman
     Asia House
     4 Weizman Street
     Tel Aviv

     Facsimile: +972-3-696-6464
     Attention: Gil White

     or such other as the Bank may notify to the Borrower by not less than five
     Business Days' notice.

33.  JURISDICTION

33.1 SUBMISSION

     The Borrower irrevocably agrees for the benefit of the Bank that any legal
     action arising out of or relating to any Finance Document may be brought in
     the courts of Tel-Aviv Jaffa and irrevocably submits to the non-exclusive
     jurisdiction of such courts and, without prejudice to the foregoing,
     further submits to the non-exclusive jurisdiction of such other courts as
     shall be designated by the Bank as being an appropriate forum.

34.  WAIVER OF IMMUNITY

<PAGE>

                                       59

     The Borrower irrevocably and unconditionally:

(a)  agrees that if the Bank brings proceedings against it or its assets in
     relation to a Finance Document, no immunity from those proceedings
     (including, without limitation, suit, attachment prior to judgment, other
     attachment, the obtaining or judgement, execution or other enforcement)
     will be claimed by or on behalf of itself with respect to its assets;

(b)  waives any such right of immunity which it or its assets now has or may
     subsequently acquire; and

(c)  consents generally in respect of any such proceedings to the giving of any
     relief or the issue of any process in connection with those proceedings,
     including, without limitation, the making, enforcement or execution against
     any assets whatsoever (irrespective of its use or intended use) of any
     order or judgment which may be made or given in those proceedings.

35.  GOVERNING LAW

     This Agreement is governed by the laws of the State of Israel.

36.  THIRD PARTIES

     The parties intend that no term of the Agreement may be enforced by any
     person who is not a party to the Agreement.

This Agreement has been entered into on the date stated at the beginning of this
Agreement.

                  [THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

<PAGE>

                                       60

                                   SCHEDULE 1

                                   COMMITMENT

                              TRANCHE A COMMITMENT

                                 EURO 20,000,000

                              TRANCHE B COMMITMENT

                                 EURO 9,609,286
                                 GBP 17,439,402

                              TRANCHE C COMMITMENT

                                 EURO 2,392,439

                              TRANCHE D COMMITMENT

                                 NIS 11,220,000
                                 EURO 1,370,000

<PAGE>

                                       61

                                   SCHEDULE 2

                                     PART I

                          BORROWER FUNDED SUBSIDIARIES

                                     PART II

                              EQUITY CONTRIBUTIONS

<TABLE>
<CAPTION>
                                                  AMOUNT OF EQUITY
BORROWER FUNDED SUBSIDIARY         PROJECT          CONTRIBUTION
--------------------------   ------------------   ----------------
<S>                          <C>                  <C>
ANDRASSY, 25 KFT.            ANDRASSY 25             E1,869,511
VICTORY ENTERPRISES II BV    VICTORIA AMSTERDAM      E6,244,166
VICTORY ENTERPRISES II BV    UTRECHT                 E1,495,609
VICTORIA HOTEL HOLDING BV    ALORA (VICTORIA)        L6,086,228
GRANDIS HOTEL HOLDING BV     GRANDIS                 L1,642,602
RIVERBANK HOTEL HOLDING BV   ALBERT (RIVERBANK)      L8,977,718
SHAW HOTEL HOLDING BV        SHAW                    L  732,853
</TABLE>
<PAGE>

                                       62

                                   SCHEDULE 3

                              CONDITIONS PRECEDENT

1.   CONSTITUTIONAL DOCUMENTS

     A copy of the constitutional documents of the Borrower and each Holding
     Subsidiary.

2.   BORROWER CORPORATE AUTHORIZATIONS

(a)  an approval from counsel to the Borrower confirming which persons are
     authorised to sign the Finance Documents on behalf of the Borrower and to
     sign and/or despatch all documents and notices to be signed and/or
     despatched by the Borrower under or in connection with the Finance
     Documents; and

(b)  a certificate of the Borrower confirming that the borrowing of the Facility
     in full would not cause any borrowing limit binding on the Borrower to be
     exceeded.

3.   FINANCE DOCUMENTS AND RELATED DOCUMENTS

     Originals of the following duly executed by all parties to them:

(a)  this Agreement;

(b)  each Security Document; and

(c)  all documentation required to open or operate the Accounts.

4.   AUTHORISATIONS

     A copy of any specific licenses or consents required for the consummation
     of the transactions contemplated under the Agreement.

5.   SECURITY MATTERS

     Evidence that the Security Documents have been duly executed by the
     Borrower and have been perfected and registered at any relevant companies'
     or other register.

6.   ACCOUNTS

     Evidence that each of the Accounts has been opened in accordance with the
     Agreement.

7.   LEGAL OPINIONS

     (a)  From Marc Lavine, Israeli in-house legal adviser to the Borrower,
          addressed to the Bank;

<PAGE>

                                       63

     (b)  From Bird and Bird, Dutch legal adviser to the Borrower, addressed to
          the Bank; and

     (c)  From Baker McKenzie, Belgian legal adviser to the Bank addressed to
          the Bank.

8.   FEES

     Receipt of evidence that the Borrower has paid all fees, costs and expenses
     of the Bank and its advisers in accordance with the Agreement.

9.   VALUATION

     Within 90 days of signing this Agreement, a valuation (produced by a third
     party valuer acceptable to the Bank) of the assets of BEA Hotels (held by
     the Borrower Funded Subsidiaries).

10.  LOAN REPAYMENT UNDERTAKING

     An undertaking from BEA Hotels that any repayment by it of loans to the
     Borrower shall be made to the Revenue Account.

11.  GROUP STRUCTURE

     A group structure chart showing each Borrower Subsidiary and the holding
     structure of the Borrower by the Shareholder.

12.  MANGO ISRAEL

     Copies of all documentation evidencing:

     (a)  the acquisition by the Borrower of 100% of the equity and voting
          rights in Mango Israel; and

     (b)  Mango Israel's exclusive ownership of the distribution rights with
          respect to the sale and distribution of MANGO-branded clothing and
          footwear in Israel.

<PAGE>

                                       64

                                   SCHEDULE 4

                                     PART I

                             FORM OF PROJECT REQUEST

<PAGE>

                                       65

                                   SCHEDULE 4

                                     PART II

                             FORM OF PROJECT CONSENT

Elscint Ltd.
13 Moses Street
Tel Aviv

                                                                   Date: [_____]

Dear Sirs,

                                  ELSCINT LTD.
             LOAN AGREEMENT DATED 5 DECEMBER, 2005 (THE "AGREEMENT")

We refer to your request (the "Project Request") dated [_____] (a copy of which
is attached hereto as Annex I) in which you requested us to provide our
approval, in principle, for you to make an Equity Contribution in respect of the
project described in your request (the "Project").

In reliance upon the details and information provided by you in the Project
Request (including without limitation, the budget, forecasts, detailed breakdown
of the costs and estimated drawing requirements under the Agreement in order to
fund the Equity Contribution for the Project) as well as the supplementary
information you have provided to us at our request subsequent to the date of the
Project Request, we hereby grant our approval, in principal, to you making an
Equity Contribution in respect of the Project in an amount of up to
[U.S.$_____]. The foregoing approval is subject to the terms and conditions of
the Agreement, including without limitation, the terms and conditions contained
therein for the making of any Advances. The foregoing approval is also subject
to there having been no material change in any of the information upon which we
relied when issuing this Project Consent which might have any adverse impact on
the Project, including, without limitation the timetable and budget for
completion of the Project and the estimated Equity Contribution required to be
provided by you for such to occur.

Terms used in this letter but not defined herein shall have the meanings
ascribed to such terms in the Agreement.

This letter shall be governed by the laws of the State of Israel.

Yours sincerely,

Bank Hapoalim B.M.

<PAGE>

                                       66

                                   SCHEDULE 5

                            FORM OF DRAWDOWN REQUEST

To: BANK HAPOALIM B.M.
    Head Office, Corporate Business Division
    41-45 Rothschild St.
    Tel-Aviv, 65874
    Israel
    Facsimile: +972 3 567 3154
    Attention: Manager of the Infrastructure, Tourism and Capital Markets

From: ELSCINT LTD.

                                                                   Date: [_____]

                                  ELSCINT LTD.
                      LOAN AGREEMENT DATED 5 DECEMBER, 2005

1.   We wish to borrow an Advance as follows:-

     (a)  Drawdown Date: [_____]

     (b)  Original Euro Amount: [_____]

     (c)  Currency: [_____]

2.   We confirm that each condition specified in Clause 4.2 (Further conditions
     precedent) is satisfied on the date of this Drawdown Request.

3.   We certify that:

     (a)  the proceeds of the requested Advance shall be applied wholly and
          exclusively to fund Equity Contributions for the project (the
          "Project") described in our request dated [_____] (the "Project
          Request") in respect of which your prior written consent has been
          received (a copy of which consent is attached hereto) (the "Project
          Consent"); and

     (b)  there has not been any material change in any of the information upon
          which you relied when issuing the Project Consent which might have any
          adverse impact on the Project, including, without limitation the
          timetable and budget for completion of the Project and the estimated
          Equity Contribution required to be provided by us for such to occur.

4.   Terms used in this letter but not defined herein shall have the meanings
     ascribed to such terms in the Agreement.

5.   This letter shall be governed by Israeli law.

<PAGE>

                                       67

6.   This Drawdown Request shall constitute a Finance Document.

By:
    ---------------------------------

ELSCINT LTD.
AUTHORISED SIGNATORY

Approved:

BANK HAPOALIM B.M.

<PAGE>

                                       68

                                   SCHEDULE 6

                          FORM OF DISBURSEMENT REQUEST

To: BANK HAPOALIM B.M.
    Head Office, Corporate Business Division
    41-45 Rothschild St.
    Tel-Aviv, 65874
    Israel
    Facsimile: +972 3 567 3154
    Attention: Manager of the Infrastructure, Tourism and Capital Markets Sector

From: ELSCINT LTD.

                                                                   Date: [_____]

                        DISBURSEMENT REQUEST NO. [_____]

We refer to the loan agreement dated [_____] (the "AGREEMENT") between Elscint
Ltd. (the "BORROWER") and Bank Hapoalim B.M. (the "BANK").

Save as expressly defined in this Disbursement Request, capitalised terms
defined in the Agreement shall have the same meaning in this Disbursement
Request.

We hereby irrevocably request a disbursement (the "REQUESTED DISBURSEMENT") from
the Loan Account as follows:

1.   Amount of Requested Disbursement:

     [_____]

2.   Date of Requested Disbursement: [_____] (the "REQUESTED DISBURSEMENT DATE")

3.   Details of payee: [_____]

The Borrower hereby confirms that no Default has occurred and is continuing as
at the date hereof.

The Borrower hereby certifies that the proceeds of the Requested Disbursement
shall be applied solely toward the purposes permitted under the Agreement, as
set out in Annex I to this Disbursement Request.

This Disbursement Request shall be governed by Israeli law.

This is designated as a Finance Document.

<PAGE>

                                       69

By:
    ---------------------------------

ELSCINT LTD.
AUTHORISED SIGNATORY

Approved:

BANK HAPOALIM B.M.

<PAGE>

                                       70

                                     ANNEX I

 DESCRIPTION AND BREAKDOWN OF APPLICATION OF PROCEEDS OF REQUESTED DISBURSEMENT

Description of Work Already Funded for each Line Item of Project Budget:

Breakdown of Application of Proceeds by Line Item of Project Budget:

Total Disbursement Requested: [____]

<PAGE>

                                       71

                                   SCHEDULE 7

                          TRANCHE A REPAYMENT SCHEDULE

<TABLE>
<CAPTION>
   DATE      REPAYMENT AMOUNT
   ----      ----------------
<S>          <C>
30/06/2006      E   396,000
31/12/2006      E   396,000
30/06/2007      E   416,000
31/12/2007      E   416,000
30/06/2008      E   436,000
31/12/2008      E   436,000
30/06/2009      E   460,000
31/12/2009      E   460,000
30/06/2010      E   482,000
31/12/2010      E   482,000
30/06/2011      E   508,000
31/12/2011      E   508,000
30/06/2012      E   532,000
31/12/2012      E   532,000
30/06/2013      E   560,000
31/12/2013      E   560,000
30/06/2014      E   590,000
31/12/2014      E   590,000
30/06/2015      E   620,000
31/12/2015      E   620,000
31/12/2015      E10,000,000
TOTAL           E20,000,000
</TABLE>

<PAGE>

                                       72

                                   SCHEDULE 8

                                FORM OF GUARANTEE

<PAGE>

                                       73

                                   SCHEDULE 9

                             SUBORDINATION AGREEMENT

<PAGE>

                                       74

                                   SCHEDULE 10

                             FORM OF LOAN ASSIGNMENT

<PAGE>

                                       75

                                   SCHEDULE 11

                          PERMITTED SECURITY INTERESTS

None.

<PAGE>

                                       76

                                   SIGNATORIES

BANK

BANK HAPOALIM B.M.

By:
    ------------------------------------

BORROWER

ELSCINT LTD.

By:
    ------------------------------------<PAGE>

                                                                    Exhibit 4.21

                              DATED JANUARY 6, 2003

                            EUSTON ROAD HOTEL LIMITED

                                      -AND-

                  ACCOR UK BUSINESS AND LEISURE HOTELS LIMITED

                                      -AND-

                                    ACCOR SA

                                   ----------

                                      LEASE

                                       OF

                            The Shaw Park Plaza Hotel
                               100-110 Euston Road
                                     London
                                     NW1 2AJ

                                   ----------

                Term:       25 years (with options to renew)
                Commencing: The date hereof
                Rent:       L3,150,000 p.a. (subject to increase)

                                     (STAMP)

                                   JULIAN HOLY
                                 EMPEROR'S GATE
                               114A CROMWELL ROAD
                                 LONDON SW7 4ES
                            DX 44106 GLOUCESTER ROAD
                               TEL: 020 7370 5443
                               FAX: 020 7244 7371

<PAGE>

                                      INDEX

<TABLE>
<CAPTION>
CLAUSE                                                                      PAGE
------                                                                      ----
<S>                                                                         <C>
Definitions..............................................................     1
   Definitions...........................................................     1
   Construction and Interpretation.......................................     5
      Any Superior Landlord or Mortgagee.................................     5
      Entry to the Premises..............................................     6
      Indemnities........................................................     6
      Successors to original parties.....................................     7
      Tenant's covenants.................................................     7
      Joint and several obligations......................................     7
      Tenant's default...................................................     7
      This Lease.........................................................     7
      Statutes ..........................................................     7
      Premises ..........................................................     8
      Effect of the 1995 Act.............................................     8
      Tenant's insurance obligations.....................................     8
      Gender singular and plural.........................................     8
      Particulars contents and headings..................................     8
Demise And Rents.........................................................     8
Tenant's Covenants.......................................................     9
   To pay rent...........................................................     9
   To pay interest on overdue monies.....................................     9
   To pay outgoings and supplies.........................................    10
   Insurance Obligations.................................................    10
   To repair.............................................................    12
   To decorate exterior..................................................    12
   To decorate interior..................................................    12
   To clean and treat surfaces...........................................    12
   To comply with notices to repair......................................    13
   To permit entry.......................................................    13
   Not to introduce dangerous things or allow contamination..............    13
   Not to overload.......................................................    14
   Not to harm drains....................................................    14
   User .................................................................    14
   Not to make alterations...............................................    15
   Not to prejudice easements............................................    16
   Alienation............................................................    17
   Assignment............................................................    17
   Underletting..........................................................    21
   To give details of underleases........................................    24
</TABLE>

<PAGE>

<TABLE>
<S>                                                                         <C>
   Registration..........................................................    24
   To pay Landlord's costs...............................................    25
   To observe statutory requirements.....................................    25
   Planning .............................................................    26
   To inform Landlord of notices.........................................    27
   To inform Landlord of contaminants and defects........................    27
   Indemnities...........................................................    27
   Applications for consent..............................................    28
   To remedy breaches by undertenants....................................    28
   Yielding up...........................................................    28
   To pay VAT............................................................    29
   Reimbursement of VAT..................................................    29
   Substitution of surety................................................    30
   Superior title restrictions...........................................    30
Surety's Covenants.......................................................    30
Landlord's Covenants.....................................................    30
   Quiet enjoyment.......................................................    30
   Insurance.............................................................    31
Provisos ................................................................    32
   Forfeiture............................................................    32
   Abatement of Rent.....................................................    33
   Determination.........................................................    33
   No implied easements..................................................    34
   Rights of light and air...............................................    34
   No restrictions on adjoining property.................................    34
   Acceptance of rent....................................................    35
   Arbitration...........................................................    36
   No compensation.......................................................    36
   Notices ..............................................................    36
   Representation........................................................    36
   Effect on waiver......................................................    36
   Release on Assignment of Reversion....................................    36
   Severance.............................................................    37
   Due dates.............................................................    37
Rent Increase............................................................    37
Tenant's Right Of First Refusal..........................................    37
Latent Defects...........................................................    38
Tenant's Option To Renew.................................................    41
</TABLE>

<PAGE>

<TABLE>
<S>                                                                         <C>
The Chattels.............................................................    42
Applicable Law...........................................................    42
Third Party Rights.......................................................    42
Agreement For Lease......................................................    42
Schedule 1...............................................................    43
Schedule 2...............................................................    44
Schedule 3...............................................................    46
Schedule 4...............................................................    48
Schedule 5...............................................................    51
</TABLE>

<PAGE>

                                   PARTICULARS

<TABLE>
<S>                           <C>
Date                          January 6, 2003

1.   the Landlord             EUSTON ROAD HOTEL LIMITED (company number 62798
                              Jersey) whose registered office is at Lord
                              Coutanche House 66-68 Esplanade St. Helier Jersey
                              JE2 3QB

2.   the Tenant               ACCOR UK BUSINESS AND LEISURE HOTELS LIMITED
                              (company number 1016187) whose registered office
                              is at 1 Shortlands Hammersmith London W6 8DR

3.   the Surety               ACCOR SA (company number B602036444) whose
                              registered office is at EVRY (91000) 2 Rue de la
                              Mare Neuve France

4.   the Premises             The Shaw Park Plaza Hotel 100-110 Euston Road
                              London NW1 2AJ more particularly described in
                              Schedule 1

5.   Contractual Term         25 YEARS from and including the Term Commencement
                              Date

6.   Term Commencement Date   The date hereof

7.   Rents                    The various rents reserved by Clause 2

8.   Rent Start Date          The Term Commencement Date

9.   Permitted Use            As an hotel with ancillary uses to include:-

                              (i)  retail outlets not exceeding 5 in number and
                                   not accommodating more than 2,000 square feet
                                   of net usable area in the aggregate;

                              (ii) the use of the existing theatre for all
                                   purposes ordinarily associated with a
                                   theatre;

                              (iii) the holding of conferences for all purposes;

                              (iv) the holding of educational gatherings for all
                                   purposes;

                              (v)  the holding of social leisure and religious
                                   functions;
</TABLE>

<PAGE>

<TABLE>
<S>                           <C>
                              (vi) restaurants and other facilities for the sale
                                   of food and beverages of all descriptions to
                                   both guests within the hotel and the public
                                   at large;

                              (vii) such other uses as may from time to time be
                                   reasonably considered to be commensurate with
                                   the principal use of the Premises as a high
                                   class hotel.
</TABLE>

<PAGE>

THIS LEASE is made on the date stated at the head of the Particulars and between
the parties specified therein

1    DEFINITIONS

     1.1  DEFINITIONS

          In this Lease the expressions in the first column of the Particulars
          have the meanings given in the second column and the following words
          and expressions have the following meanings:

          1.1.1 ASSOCIATED COMPANY means any company which is (in relation to
               another company) its parent undertaking or its subsidiary
               undertaking or a subsidiary undertaking of its parent undertaking
               or any other person controlled by or under the same control
               direct or indirect and PARENT UNDERTAKING and SUBSIDIARY
               UNDERTAKING shall have the meanings given in Sections 258 and 259
               of the Companies Act 1985

          1.1.2 CHATTELS means all of the chattels, equipment, fittings and
               other things (not being in the nature of landlord's fixtures and
               fittings) presently within the Premises and used or capable of
               being used for the purposes of carrying on therefrom the business
               of a modern high class 4 Star (or equivalent) hotel in accordance
               with all aspects of the Permitted Use as the same are specified
               in the Inventory of Chattels annexed hereto

          1.1.3 CONDUITS means all sewers drains pipes gulleys gutters ducts
               flues watercourses channels subways wires cables and other
               conducting media of whatsoever nature

          1.1.4 FULL COST OF REINSTATEMENT shall mean the reasonable and proper
               costs (including the cost of shoring up demolition and site
               clearance architects' surveyors' and other professional fees and
               incidental expenses with VAT thereon in each case) which would be
               likely to be incurred in or as a result of rebuilding or
               reinstating the Premises in accordance with the requirements of
               this Lease at the time when such rebuilding or reinstatement is
               likely to take place having regard to all relevant factors
               including any increases in building costs expected or anticipated
               to

                                                                               1

<PAGE>

               take place at any time up to the date upon which the Premises
               shall be fully rebuilt or reinstated

          1.1.5 GROUP COMPANY means any company which falls within the same
               group as another company or its holding company, including
               (without limitation) any of the following:

               (a)  all subsidiaries of such company or its holding company

               (b)  any holding company

               (c)  any company which is another subsidiary of any holding
                    company

               in each case within the meaning of Sections 736 and 736A of the
               Companies Act 1985

          1.1.6 INFERIOR LEASE means the sublease brief details of which are set
               out in Part 4 of Schedule 3

          1.1.7 INITIAL RENT means THREE MILLION ONE HUNDRED AND FIFTY THOUSAND
               POUNDS per annum (L3,150,000 p.a.) (exclusive of VAT)

          1.1.8 INSURED RISKS means risks in respect of loss, damage or
               destruction by fire, storm, lightning, earthquake, explosion,
               riot, civil commotion, strikes, labour and political disturbances
               and malicious damage, terrorism, aircraft and other aerial
               devices or articles dropped therefrom, tempest, flood, bursting
               or overflowing of water tanks, apparatus or pipes and impact by
               road vehicles, subsidence, ground slip and heave (to the extent
               that insurance against such risks may ordinarily be arranged in
               the United Kingdom insurance market) and also against third party
               risks and property owner's liability and such other risks
               (whether or not of a like kind) or insurance (not being those
               against which the Tenant shall also have insured in accordance
               with its obligations in that regard contained in this Lease) as
               the Landlord may from time to time deem to

                                                                               2

<PAGE>

               be desirable but subject in every case to such normal excesses
               exclusions and limitations from time to time imposed by the
               Insurers

          1.1.9 INSURERS means the insurance office or underwriters with whom
               the insurance cover referred to in Clause 5.2 is effected

          1.1.10 LANDLORD shall include the person for the time being entitled
               to the reversion immediately expectant on the determination of
               the Term

          1.1.11 LANDLORD'S SURVEYOR means an associate or fellow of the Royal
               Institution of Chartered Surveyors who is a partner or director
               in a firm or company (as the case may be) of chartered surveyors
               experienced in all aspects of property in the nature and in the
               location of the Premises or alternatively a surveyor in the
               employ of the Landlord with equivalent professional and practical
               qualifications who shall in all matters act as an independent
               expert and owe a duty as such to both the Landlord and the Tenant
               and has adequate professional indemnity cover (including run-off
               cover)

          1.1.12 this LEASE means this lease and any document which is
               supplemental hereto or which is collateral herewith or which is
               entered into pursuant to or in accordance with the terms of this
               Lease

          1.1.13 LOCAL AUTHORITY means a county council a district council a
               London borough council a parish or community council a county
               borough council or any joint or unitary authority and any other
               body falling within the definition of local authority in Section
               336 of the Town and Country Planning Act 1990 (as amended from
               time to time)

          1.1.14 LOSS OF RENT means the loss of the Yearly Rent for 36 calendar
               months

          1.1.15 PLANNING ACTS means Town and Country Planning Act 1990 Planning
               (Listed Buildings and Conservation Areas) Act 1990 Planning
               (Hazardous Substances)

                                                                               3

<PAGE>

               Act 1990 and Planning (Consequential Provisions) Act 1990

          1.1.16 PREMISES means the land and premises described in Schedule 1
               and each and every part thereof together with the appurtenances
               thereto belonging and together also with any buildings and
               erections and each and every part thereof now or hereafter
               erected or in the course of erection thereon or on any part
               thereof together with all additions alterations and improvements
               thereto which may be carried out during the Term and shall also
               include all landlord's fixtures and fittings from time to time in
               and about the same and the Chattels

          1.1.17 PRESCRIBED RATE means a rate of interest being 3% above the
               Base Rate from time to time of Barclays Bank Plc or over such
               other rate as may from time to time replace the same or over such
               other rate as the Landlord may from time to time reasonably
               require

          1.1.18 QUARTER DAY means each of 25th March 24th June 29th September
               and 25th December in each year and references to QUARTER DAYS and
               USUAL QUARTER DAYS shall be construed accordingly

          1.1.19 SUPERIOR LANDLORD means any person who at any time holds an
               interest in reversion (whether or not immediate) to any lease
               under which the Landlord may at any time hold its interest in the
               Premises and SUPERIOR LEASES shall be construed accordingly

          1.1.20 SURETY means any person for the time being guaranteeing the
               obligations of the Tenant and in the case of an individual shall
               include his personal representatives

          1.1.21 TENANT shall include its successors in title and in the case of
               an individual shall include his personal representatives

          1.1.22 TERM means the Contractual Term together with any continuation
               thereof or of the tenancy (whether under an Act of Parliament or
               by the Tenant holding over

                                                                               4

<PAGE>

               or for any other reason) arising therefrom but in respect of such
               period of continuation or holding over to apply only to those
               obligations of the Tenant in occupation at such time including
               for the avoidance of doubt any extension under the terms of this
               Lease

          1.1.23 VAT means value added tax as provided for in the Value Added
               Tax Act 1994 and legislation (delegated or otherwise)
               supplemental thereto and any similar tax replacing or introduced
               in addition to the same

          1.1.24 WORKING DAY means any day (except Saturday or Sunday) when the
               United Kingdom clearing banks are open for business in the City
               of London

          1.1.25 YEARLY RENT means the Initial Rent or the rent payable from
               time to time in accordance with the provisions of Clause 7 and
               Schedule 2

          1.1.26 1927 ACT means the Landlord and Tenant Act 1927

          1.1.27 1954 ACT means the Landlord and Tenant Act 1954 (as amended)

          1.1.28 1995 ACT means the Landlord and Tenant (Covenants) Act 1995

     1.2  CONSTRUCTION AND INTERPRETATION

          The following rules of construction and interpretation apply to each
          and every part of this Lease:

          1.2.1 ANY SUPERIOR LANDLORD OR MORTGAGEE

               In the following cases references to "the Landlord" are to be
               construed as extending to any Superior Landlord and to any
               mortgagee of the Landlord or of any Superior Landlord:

               (a)  where there are rights easements exceptions and reservations
                    in favour of or exercisable by the Landlord

               (b)  where there is an obligation to obtain the

                                                                               5

<PAGE>

                    approval or consent of the Landlord or to give notice to the
                    Landlord (but nothing in this Lease is to be construed as
                    implying that consent or approval of any Superior Landlord
                    or mortgagee will not be unreasonably withheld)

               (c)  where there is provision for repayment of any expenses to
                    the Landlord

               (d)  where there are any indemnities in favour of the Landlord

          1.2.2 ENTRY TO THE PREMISES

               (a)  Any right granted to or reserved by the Landlord to enter
                    the Premises is to be construed as extending to all persons
                    authorised by the Landlord and by any Superior Landlord and
                    by any mortgagee of either of them and as a right to enter
                    with or without workmen equipment and materials

               (b)  Authority given by the Tenant to enter the Premises after a
                    reasonable or other specified period of notice extends (if
                    justified by the circumstances) to entry after a shorter
                    period of notice or to entry without any notice

          1.2.3 INDEMNITIES

               Any indemnities given by the Tenant are to be construed as
               obligations to keep the specified persons indemnified against
               legal liability in respect of all proceedings damages penalties
               costs expenses claims and demands arising directly as a result of
               a relevant act omission or default of the Tenant

                                                                               6

<PAGE>

          1.2.4 SUCCESSORS TO ORIGINAL PARTIES

               References to "the Landlord" include the person for the time
               being entitled to the reversion immediately expectant on the
               determination of the Term (or where such person or the Landlord
               is an individual his personal representatives) and to "the
               Tenant" include the successors in title and assigns of the Tenant
               (or where the Tenant is an individual his personal
               representatives) and to "the Surety" (if any) include the
               personal representatives of any such person (if an individual)

          1.2.5 TENANT'S COVENANTS

               Any covenant by the Tenant not to do any act or thing is where
               appropriate to be construed additionally as a covenant by the
               Tenant not to permit or suffer such act or thing to be done by
               any other person being an agent servant invitee or licensee

          1.2.6 JOINT AND SEVERAL OBLIGATIONS

               Where the Landlord or the Tenant or the Surety (if any) at any
               time consists of more than one person obligations expressed or
               implied on the part of such party are joint and several
               obligations

          1.2.7 TENANT'S DEFAULT

               Unless the context otherwise requires where in this Lease there
               is reference to the consequences of the Tenant's acts omissions
               and defaults all references to "the Tenant" include references to
               the Tenant's undertenants or their respective agents servants
               invitees or licensees and to anyone at the Premises with the
               express or implied authority of the Tenant or its undertenants

          1.2.8 THIS LEASE

               This Lease is to be construed and interpreted as incorporating
               any variation addition or qualification which is expressed to
               relate to it contained in any deed made between the Landlord and
               the Tenant whether or not any person who is the Surety is a party
               and including but not limited to all licences granted by the
               Landlord to the Tenant but not so as to impose upon any person
               liability under this Lease which would be precluded by s.18 of
               the Landlord and Tenant (Covenants) Act 1995

          1.2.9 STATUTES

               Except for any references to the Town and Country Planning (Use
               Classes) Order 1987 (if any) any reference to any statute
               includes any modification extension or re-enactment of such
               statute for the time being in force and any instruments
               regulations directions orders or permissions made under it

                                                                               7

<PAGE>

          1.2.10 PREMISES

               References to the Premises (except Clauses 3.18, 3.19 and 3.20)
               shall be construed as extending to any part of the Premises

          1.2.11 EFFECT OF THE 1995 ACT

               Wherever and to the extent that any provision of this Lease would
               or might contravene the provisions of s.25 of the 1995 Act then:

               (a)  such provision is to take effect only in so far as it may do
                    so without contravening s.25 of the 1995 Act and

               (b)  where such provision is incapable of having any effect
                    without contravening s.25 of the 1995 Act this Lease is to
                    be construed and interpreted as if such provision were
                    deleted and

               (c)  the legality validity and enforceability of any of the
                    remaining provisions of this Lease is not in any way to be
                    affected or impaired as a result

          1.2.12 TENANT'S INSURANCE OBLIGATIONS

               Any insurance policy shall be deemed to have been "voided" if it
               has been rendered void or vitiated or if payment of any policy
               monies has been refused in whole or part by reason of any act
               omission neglect or default of the Tenant its undertenants or
               their respective agents servants invitees or licensees

          1.2.13 GENDER SINGULAR AND PLURAL

               Words importing one gender include other genders and words
               importing the singular include the plural and vice versa

          1.2.14 PARTICULARS CONTENTS AND HEADINGS

               The particulars form part of this Lease but the clause paragraph
               and schedule headings and any table of contents are not to be
               taken into account in the construction and interpretation of this
               Lease

2    DEMISE AND RENTS

     In consideration of the rents reserved by and the Tenant's covenants and
     conditions contained in this Lease the Landlord DEMISES the Premises to the
     Tenant TOGETHER

                                                                               8

<PAGE>

     WITH the easements and other rights (in common with the Landlord and all
     other persons having its express or implied authority and all other persons
     having like rights) specified in Part 1 of Schedule 3 EXCEPTING AND
     RESERVING to the Landlord (and all other persons authorised by the Landlord
     from time to time during the Term) the easements and other rights specified
     in Part 2 of Schedule 3 TO HOLD the Premises unto the Tenant from and
     including the Term Commencement Date for the Term SUBJECT (a) to all rights
     easements quasi-easements and privileges to which the Premises are or may
     be subject and (b) the matters set out in Part 3 of Schedule 3 AND SUBJECT
     to and with the benefit of the Inferior Lease YIELDING AND PAYING to the
     Landlord as rent:

     2.1  FIRSTLY throughout the Term (and proportionately for any part of a
          year) the Yearly Rent (increasing in accordance with the provisions of
          Clause 7 and Schedule 2) to be paid in advance by equal quarterly
          instalments on the usual Quarter Days the first instalment or a
          proportion thereof (calculated on a daily basis) in respect of the
          period beginning on the Rent Start Date and ending on the day
          immediately preceding the next Quarter Day to be paid on the date of
          this Lease

     2.2  SECONDLY by way of additional rent on receipt of a written demand
          therefor the cost to the Landlord of insuring the Premises against the
          Insured Risks and of effecting the Loss of Rent insurance and the
          reasonable and proper cost of valuing the Premises for insurance
          purposes from time to time (but not more than once in any twelve month
          period)

     2.3  THIRDLY by way of additional rent on demand the moneys referred to in
          Clause 3.2

     2.4  FOURTHLY by way of additional rent all VAT for which the Landlord is
          or may become liable on the supply by the Landlord to the Tenant under
          or in connection with this Lease of the interest created by it and of
          any other supplies (whether of goods or services) including (but not
          limited to) all rents and other sums payable under this Lease such VAT
          to be paid at the same time as the sums to which it relates

3    TENANT'S COVENANTS

     The Tenant HEREBY COVENANTS with the Landlord as follows:

     3.1  TO PAY RENT

          To pay the Rents reserved by this Lease at the times and in the manner
          set out in this Lease without any deduction set-off or counterclaim
          (save as required by law)

     3.2  TO PAY INTEREST ON OVERDUE MONIES

          That without prejudice to any other right remedy or power contained in
          this Lease or otherwise available to the Landlord if any Yearly Rent
          shall not be received on the due date or any other Rents shall not be
          received within 14 days of the due date for payment thereof then in
          any such case to pay on receipt of written demand to the Landlord
          interest thereon at the Prescribed Rate (to be

                                                                               9

<PAGE>

          compounded on the usual Quarter Days) from the date when the same
          became due until payment thereof is received (as well after as before
          any judgment)

     3.3  TO PAY OUTGOINGS AND SUPPLIES

          3.3.1 To bear pay and discharge all existing and future rates taxes
               duties charges assessments impositions and outgoings whatsoever
               (whether parliamentary parochial local or otherwise and whether
               or not of a capital or non-recurring nature) which now are or may
               at any time hereafter during the Term be charged levied assessed
               or imposed upon or properly apportioned by the Landlord's
               Surveyor (acting properly) to the Premises or upon the owner or
               occupier in respect thereof PROVIDED ALWAYS that the foregoing
               shall not extend to payment of any tax payable only as a direct
               result of any dealing by the Landlord with its reversionary
               interest in the Premises

          3.3.2 Where a separate supply is provided to the Premises to pay the
               supplier and to indemnify the Landlord against all charges for
               electricity gas water sewage telecommunications data and other
               supplies consumed on the Premises and to pay all equipment rents

     3.4  INSURANCE OBLIGATIONS

          3.4.1 Not to do or omit or suffer to be done or omitted anything which
               may make void or voidable any policy of insurance of the Premises
               Provided that the Landlord shall have first provided the Tenant
               with a copy of the relevant current policy of such insurance

          3.4.2 To comply with the reasonable and proper requirements and
               recommendations from time to time of the Insurers

          3.4.3 To notify the Insurers and the Landlord forthwith on the
               occurrence of any damage occasioned by any Insured Risk at the
               Premises

          3.4.4 To notify the Landlord of any new landlord's fixtures and
               fittings installed from time to time in the Premises by the

                                                                              10

<PAGE>

               Tenant or any undertenant which may affect any insurances

          3.4.5 In the event of the Premises or any part thereof being damaged
               or destroyed by any of the Insured Risks at any time during the
               Term and the insurance money under any policy of insurance
               effected thereon being wholly or partially voided then and in
               every such case the Tenant will forthwith pay to the Landlord the
               whole or (as the case may require) the voided proportion of the
               cost of rebuilding and reinstating the same

          3.4.6 To insure and at all times keep insured the Premises against all
               Tenant's third party public and occupiers liability risks for a
               sum to be first approved by the Landlord being not less than Five
               million pounds (L5,000,000) for any one occurrence and to effect
               such insurance in some reputable insurance office and upon every
               request by the Landlord (such request not to be made more than
               once in any 12 month period) forthwith to produce particulars of
               the policy of such insurance and the receipt for every premium
               for the then current year payable in respect of such policy
               PROVIDED ALWAYS THAT if and whenever default shall be made in
               making and keeping on foot such insurance as aforesaid or in
               producing in the manner aforesaid such evidence or policy or
               receipt as aforesaid the Landlord may effect and maintain such
               insurance and the Tenant shall repay all monies paid by the
               Landlord for that purpose to the Landlord within 14 days of
               demand and the cost thereof shall be a debt due from the Tenant
               to the Landlord and be forthwith recoverable by action PROVIDED
               ALWAYS THAT for so long only as this Lease is vested in Accor UK
               Business and Leisure Hotels Limited or any Group Company thereof
               then the aforesaid obligations of the Tenant to adduce evidence
               of the existence of insurance shall be deemed discharged by the
               unconditional written confirmation by the Tenant that the terms
               of this Clause 3.4.6 are being complied with

                                                                              11
<PAGE>

          3.4.7 Other than in accordance with Clause 3.4.6 not to effect any
               insurance policy to cover the Insured Risks but if in breach of
               this covenant to pay to the Landlord all monies received under
               such policy in connection with the Landlord's obligations under
               Clause 5.2 of this Lease

     3.5  TO REPAIR

          At all times during the Term to keep the Premises in good and
          substantial repair and condition and to maintain renew and replace
          (where uneconomical to repair) the same damage or destruction by any
          of the Insured Risks excepted (unless and to the extent that the
          relevant insurance policy has been voided) PROVIDED THAT nothing
          herein shall require the Tenant to keep the Premises in a better state
          of repair than the same are now in as is evidenced by the Schedule of
          Condition and Inventory of Chattels annexed hereto

     3.6  TO DECORATE EXTERIOR

          As often as shall reasonably be necessary during the Term (having
          regard to the proposed use of the Premises as a high class hotel) to
          properly prepare and thereafter to paint in a good and workmanlike
          manner with two coats at least of good quality paint of a colour which
          if different from the present colour shall be previously approved in
          writing by the Landlord's Surveyors (such approval not to be
          unreasonably withheld) all the exterior parts of the Premises as are
          usually or ought to be painted

     3.7  TO DECORATE INTERIOR

          As often as shall reasonably be necessary during the Term (having
          regard to the proposed use of the Premises as a high class hotel) to
          properly prepare and thereafter to paint with two coats at least of
          good quality paint and to treat varnish decorate paper and plaster all
          the interior parts of the Premises as are usually or ought to be
          painted treated varnished papered or plastered and generally to
          redecorate throughout restoring and making good the Premises and to
          carry out all the works required by this Clause 3.7 in a good and
          workmanlike manner and in the last year of the Term (howsoever
          determined save where the same is extended pursuant to clause 10) such
          paintings and decorations to be executed in such colours and materials
          as the Landlord's Surveyors may reasonably require

     3.8  TO CLEAN AND TREAT SURFACES

          As often as may be reasonably necessary to clean treat and wash in an
          appropriate manner all materials surfaces and finishes of the Premises
          which ought normally to be so cleaned treated and washed

     3.9  TO KEEP PREMISES CLEAN AND TIDY

          3.9.1 To keep the Premises in a clean and tidy condition

          3.9.2 To keep all refuse waste and rubbish in a

                                                                              12

<PAGE>

               suitable container or containers on the Premises or where the
               Landlord directs acting reasonably

     3.10 TO COMPLY WITH NOTICES TO REPAIR

          Well and substantially to repair and make good all defects and wants
          of reparation repair or renewal of which notice in writing shall be
          given to or left on the Premises for the Tenant by the Landlord and
          for which the Tenant is liable hereunder and to commence the same
          within three calendar months after the receipt or leaving of such
          notice (or sooner if necessary) and if the Tenant shall fail to comply
          with any such notice within a reasonable time for so doing it shall be
          lawful (but not obligatory) for the Landlord (without prejudice to the
          right of re-entry hereinafter contained) to enter upon the Premises to
          make good the same at the cost of the Tenant which cost together with
          all Solicitors' and Surveyors' charges and other reasonable and proper
          expenses and losses which may be incurred by the Landlord in
          connection therewith shall be repaid by the Tenant to the Landlord on
          demand

     3.11 TO PERMIT ENTRY

          To permit the Landlord and its agents and all persons authorised by
          them at all reasonable times with or without workmen on giving
          reasonable notice (except in emergency) to the Tenant to enter upon
          the Premises for the purpose of ascertaining that the covenants and
          conditions of this Lease have been observed and performed and to view
          the state of repair and condition thereof and to take a schedule of
          the Landlord's fixtures and of any dilapidations and to exercise the
          rights excepted and reserved by this Lease

     3.12 NOT TO INTRODUCE DANGEROUS THINGS OR ALLOW CONTAMINATION

          3.12.1 Not to bring into the Premises or to place or store or permit
               to remain in or about the Premises any article or thing which is
               or may become dangerous offensive combustible inflammable
               radioactive explosive harmful polluting or contaminating other
               than items which are used normally in connection with the
               Permitted Use

          3.12.2 To ensure that the Premises are not contaminated during the
               Term and to carry out or cause to be carried out all works and
               actions necessary to remove any such contamination and restore
               the Premises to a condition as though such contamination had not
               taken place and not to do anything on or relating to the Premises
               which does or might cause any pollution or contamination of any
               other premises or the environment

                                                                              13

<PAGE>

          3.12.3 To obtain any authorisation licence consent or permission
               required under any legislation relating to pollution or
               contamination of the environment with respect to any use of or
               action or activity on the Premises before such use action or
               activity commences or occurs but not to implement any such
               authorisation licence consent or permission until it and any
               conditions attaching to it have been approved by the Landlord

     3.13 NOT TO OVERLOAD

          Not to place in the Premises or to place or to carry in the lifts (if
          any) in the building any articles in such position or in such quantity
          or weight or otherwise in such manner howsoever as to overload or
          cause damage to the Premises or the lifts and not to overload the
          electrical wiring or installation or other Conduits in the Premises

     3.14 NOT TO HARM DRAINS

          Not to allow to pass into the Conduits serving the Premises any
          noxious or deleterious effluent or other substance which might cause
          any obstruction in or harm to the Conduits

     3.15 USER

          3.15.1 Not to carry on or use the Premises for any noisy noisome
               offensive or dangerous trade manufacture business or occupation
               nor for any illegal or immoral purpose

          3.15.2 Not to use the Premises otherwise than for the Permitted Use
               without the prior written consent of the Landlord which consent
               shall not be unreasonably withheld or delayed

          3.15.3 The Tenant hereby acknowledges and admits that notwithstanding
               the foregoing provisions the Landlord does not thereby or in any
               other way give or make nor has given or made at any other time
               any representation or warranty that any such use is or will be or
               will remain a permitted use within the provisions of the Planning
               Acts nor shall any consent in writing which the Landlord may
               hereafter give to any change of use be taken as including any
               such representation or warranty and that notwithstanding that any
               such use as aforesaid is not a permitted use within

                                                                              14

<PAGE>

               such provisions as aforesaid the Tenant shall remain fully bound
               and liable to the Landlord in respect of the obligations
               undertaken by the Tenant by virtue of this Lease without any
               compensation recompense or relief of any kind whatsoever

     3.16 NOT TO MAKE ALTERATIONS

          3.16.1 Not to make any alterations or additions whatsoever in or to
               the Premises (save for signage and minor internal non structural
               alterations) or to the Conduits exclusively serving the Premises
               without the previous consent in writing of the Landlord (not to
               be unreasonably withheld)

          3.16.2 When applying for the consent of the Landlord hereunder to
               supply to the Landlord four copies of plans and specifications
               showing the nature and extent of the alterations or additions
               which the Tenant wishes to carry out and to pay the Landlord in
               respect of all reasonable costs and expenses which the Landlord
               may incur whether by way of surveyors' or legal expenses in
               connection with the consideration approval and supervision of the
               alterations and additions and to carry out the said alterations
               or additions only in accordance with the plans and specifications
               approved in writing by the Landlord (such approval not be
               unreasonably withheld or delayed) and in accordance with all
               statutory and local authority and Insurers' requirements and
               recommendations

          3.16.3 In the event of the Tenant failing to observe this covenant it
               shall be lawful for the Landlord and its agents or surveyors with
               or without workmen and others and all persons authorised by the
               Landlord with all necessary materials and appliances to enter
               upon the Premises on reasonable prior notice (save in emergency)
               and remove any alterations or additions and execute such works as
               may be necessary to restore the Premises to their former state
               and the costs and expenses thereof together with all solicitors'
               and surveyors' charges and other expenses and losses of a

                                                                              15

<PAGE>

               direct nature which may be incurred by the Landlord in connection
               therewith shall be repaid by the Tenant to the Landlord on demand

     3.17 NOT TO PREJUDICE EASEMENTS

          3.17.1 Not by building or otherwise to stop up or darken any window or
               light in the Premises nor to stop up or obstruct any access of
               light enjoyed by the Premises to any adjoining or neighbouring
               premises nor permit any new wayleave easement right privilege or
               encroachment to be made or acquired into against or upon the
               Premises and in case any such easement right privilege or
               encroachment shall be made or attempted to be made to give
               immediate notice thereof to the Landlord and to permit the
               Landlord and its agents to enter upon the Premises for the
               purpose of ascertaining the nature of any such easement right
               privilege or encroachment and at the request of the Landlord but
               at the cost of the Tenant to adopt such means as may be
               reasonably required or deemed proper for preventing any such
               encroachment or the acquisition of any such easement right
               privilege or encroachment

          3.17.2 Not to give to any third party any acknowledgement that the
               Tenant enjoys the access of light to any of the windows or
               openings in the Premises by the consent of such third party nor
               to pay to such third party any sum of money nor to enter into any
               agreement with such third party for the purpose of inducing or
               binding such third party to abstain from obstructing the access
               of light to any windows or openings and in the event of any of
               the owners or occupiers of adjacent land or buildings doing or
               threatening to do anything which obstructs the access of light to
               any of the said windows or openings to notify the same forthwith
               to the Landlord and to permit the Landlord to bring such
               proceedings as it may think fit in the name of and at the cost of
               the Tenant against any of the owners and/or occupiers of the
               adjacent land in respect of the obstruction of the access of
               light to any of the

                                                                              16

<PAGE>

               windows or openings in the Premises

     3.18 ALIENATION

          3.18.1 Not (save as hereinafter permitted) to assign transfer mortgage
               charge underlet part with or share possession or occupation of
               the whole or any part of the Premises

          3.18.2 Not to part with or share possession of the whole or any part
               of the Premises or permit any company or person to have
               occupation or possession of the whole or any part of the Premises
               except by way of:

               (a)  an assignment or transfer of the whole of the Premises in
                    accordance with the provisions of Clause 3.19 or

               (b)  an underlease in accordance with the provisions of Clause
                    3.20

          3.18.3 Not to permit the Premises or any part of them to be held on
               trust for or by any person body or corporation

     3.19 ASSIGNMENT

          3.19.1 Not to assign any part or parts of the Premises (as opposed to
               the whole)

          3.19.2 Not to assign the whole of the Premises unless the
               circumstances and conditions set out in this Clause 3.19.2 (which
               the parties accept within the contemplation of Section 19(1A) of
               the 1927 Act) have been complied with and satisfied, namely:

               (a)  that all arrears of Rents and other monetary payments
                    properly due under the terms of this Lease have been paid
                    prior to the completion of the intended assignment

               (b)  that all other material breaches of the Tenant's covenants
                    and conditions in this Lease have been

                                                                              17

<PAGE>

                    remedied to the reasonable satisfaction of the Landlord

               (c)  that the Tenant has produced to the Landlord an undertaking
                    from its solicitors in such form as may be reasonable in the
                    circumstances to pay all fair and reasonable costs and
                    disbursements (including irrecoverable VAT) which may be
                    reasonably and properly incurred by the Landlord in
                    connection with the application for consent including
                    without prejudice to the generality of the foregoing its
                    solicitors' costs, surveyors' costs and the costs of any
                    accountants (in each case to be reasonable and proper)
                    employed to advise on whether the intended assignee
                    satisfies any financial criteria specified in this Lease or
                    is a person of such financial standing that it is reasonable
                    for the Landlord to grant licence for the assignment of this
                    Lease to it

               (d)  that the assignee (or any party guaranteeing the assignee in
                    the terms of Schedule 4) has continuously for a period of
                    three years immediately preceding the intended date of
                    completion of the proposed assignment held a credit rating
                    as described in Clause 3.19.3 or that the assignee (or any
                    party guaranteeing the assignee in the terms of Schedule 4)
                    is able to show to the reasonable satisfaction of the
                    Landlord that it would

                                                                              18

<PAGE>

                    have satisfied the criteria necessary to acquire and hold
                    such a credit rating throughout the said period of three
                    years if an application had been made to obtain such credit
                    rating

               (e)  that the Tenant (and any then current surety of the Tenant)
                    delivers to the Landlord a deed (being an authorised
                    guarantee agreement within Section 16 of the 1995 Act) in
                    substantially the form set out in Schedule 5 but subject to
                    such amendments as may be necessary to comply with Section
                    16 of the 1995 Act and/or reasonably required by the
                    Landlord.

          3.19.3 The credit rating above referred to shall (subject to Clauses
               3.19.4 and 3.19.5) be a credit rating equal to or better than
               that held by Accor SA at the date of the proposed assignment as
               determined by Standard & Poor's Ratings Group a division of
               McGraw Hill Inc ("S&P") or Moodys Investors Service ("Moody's")
               in respect of the senior unsecured and unguaranteed long-term
               debt obligations of Accor SA

          3.19.4 The credit ratings referred to in Clause 3.19.3 shall be
               determined in accordance with the rating criteria, mechanism and
               procedure adopted by S&P or Moody's (as appropriate) as at the
               date of this Lease PROVIDED THAT:

               (a)  if for any reason during the Term S&P or Moody's cease to
                    exist the relevant credit ratings for the purposes of Clause
                    3.19.3 shall be substituted with the equivalent credit
                    rating (determined by applying substantially similar rating
                    criteria, mechanism and

                                                                              19

<PAGE>

                    procedure as those employed at the date of this Lease by S&P
                    or (as the case may be) Moody's) assigned by such
                    alternative body or bodies as the Landlord shall in its
                    reasonable opinion determine as being reasonably equivalent
                    to S&P and/or Moody's (as the case may be) and which shall
                    be notified to the Tenant on application to the Landlord or

               (b)  if for any reason during the Term S&P or Moody's adopt a
                    rating criteria, mechanism or procedure which is materially
                    different to that in operation at the date of this Lease the
                    relevant credit rating for the purposes of Clause 3.19.3
                    shall be substituted with a credit rating equivalent to the
                    formerly designated rating (determined by applying
                    substantially similar rating criteria, mechanism and
                    procedure to those adopted at the date of this Lease by S&P
                    or (as the case may be) Moody's for determining such
                    formerly designated rating)

          3.19.5 Any dispute or question between the parties hereto concerning
               the rating criteria, mechanism or procedure that is adopted by
               S&P or Moody's (as the case may be) at the date of this Lease
               shall be referred at the request of either party for
               determination by a single arbitrator to be appointed either by
               agreement between the parties or in the absence of agreement to
               be appointed on the application of either party to the President
               for the time being of the Institute of Chartered Accountants in
               England and Wales and shall be

                                                                              20

<PAGE>

               determined in accordance with the Arbitration Act 1996 who shall
               have full power to determine what would have been the rating
               criteria mechanism and procedure had S&P or Moody's continued to
               provide the credit rating service that exists at the date of this
               Lease

          3.19.6 Subject as aforesaid the Tenant shall be permitted to assign
               the whole of the Premises with the prior written consent of the
               Landlord which shall not be unreasonably withheld or delayed

     3.20 UNDERLETTING

          3.20.1 Not to underlet or agree to underlet the whole or any part or
               parts only of the Premises otherwise than as provided in this
               Clause 3.20

          3.20.2 Not to underlet or agree to underlet the whole or any part of
               the Premises or permit any person to occupy or share occupation
               of the whole or any part of the Premises at a fine or premium nor
               at a rent which is less than the open market rent for the
               underlet premises nor to permit (by whatever means) the reduction
               of rent paid or payable by any undertenant

          3.20.3 Not to underlet or agree to underlet the whole or any part of
               the Premises without first procuring:

               (a)  that any intended undertenant shall covenant with the
                    Landlord as from the date of the underlease to observe and
                    perform the covenants and conditions contained in this Lease
                    (excluding the covenant to pay the Rents) and not to
                    underlet share or part with possession or occupation of the
                    underlet premises and not without the prior written consent
                    of the Landlord to assign the underlet premises and that
                    such covenants are included in the underlease

                                                                              21

<PAGE>

                    so far as they are applicable to the underlet premises

               (b)  that in any permitted underlease the rent shall be payable
                    no more than one quarter in advance and shall be subject to
                    open market review in an upward direction only at intervals
                    of not more than five years

               (c)  if reasonably required by the Landlord in the case of a
                    letting to a private limited company there is provided a
                    guarantor(s) reasonably acceptable to the Landlord for such
                    company who prior to such letting but with effect therefrom
                    (jointly and severally if more than one) shall enter into:

                    (i)  surety covenants with the Tenant in a similar form to
                         those set out in Schedule 4 and

                    (ii) a covenant with the Landlord to observe and perform
                         such surety covenants

          3.20.4 Not to underlet or agree to underlet or permit any undertenant
               to underlet any part (as opposed to the whole) of the Premises
               without first procuring that additionally:

                                                                              22

<PAGE>

               (a)  the provisions of sections 24 to 28 (inclusive) of the 1954
                    Act are excluded from the underletting pursuant to a prior
                    Order of a Court of competent jurisdiction and

               (b)  following the grant of such underlease the total number of
                    lettings of the Premises (including this Lease but excluding
                    franchises granted in accordance with clause 3.20.8 hereof)
                    then extant is no more than 6

               (c)  any such underlease shall contain provisions enabling the
                    Tenant (as lessor) to recover from the undertenant a due
                    proportion of the cost of insuring repairing decorating and
                    operating the Premises

          3.20.5 Subject as aforesaid the Tenant shall be permitted to underlet
               the Premises as a whole or in part with the prior written consent
               of the Landlord which shall not be unreasonably withheld or
               delayed

          3.20.6 In relation to any underlease not without the prior written
               consent of the Landlord (which shall not be unreasonably withheld
               or delayed) to:

               (a)  waive or vary any provisions of an underlease

               (b)  accept a surrender of part only of any underlet premises

          3.20.7 Nothing in this Lease shall prevent the Tenant from sharing the
               use or occupation of the Premises or any part of the Premises
               with any Associated Company or Group Company of the Tenant
               PROVIDED THAT:

                                                                              23

<PAGE>

               (a)  no relationship of landlord and tenant giving rise to
                    security of tenure is created at any time

               (b)  the Tenant shall give to the Landlord not less than one
                    month's prior written notice of such proposed occupation and
                    the cessation thereof and

               (c)  any such occupation of the Premises or any part thereof
                    shall cease upon the Associated or Group Company in
                    occupation ceasing to be an Associated or Group Company
                    whereupon such company shall forthwith vacate the Premises
                    or such part thereof of which it is in occupation

          3.20.8 Nothing in this Lease shall prevent the Tenant from using the
               Premises for the Permitted Use or from granting franchises (not
               being tenancies or otherwise affording security of tenure) in
               respect of any retail accommodation lawfully within the Premises
               from time to time or from concluding operating agreements (not
               being tenancies or otherwise affording security of tenure) for
               the use of the theatre within the Premises

     3.21 TO GIVE DETAILS OF UNDERLEASES

          Whenever reasonably requested (but not more than twice in any calendar
          year) by the Landlord to supply a schedule of underleases or
          franchises granted in respect of the Premises (however remote) to
          include details of (i) the date (ii) the premises let (iii) the term
          (iv) the parties and (v) the rent

     3.22 REGISTRATION

          Within one month after the date of any assignment transfer or any
          underlease of the Premises or the execution of any mortgage or charge
          affecting this Lease as aforesaid or any assignment or transfer of any
          such mortgage or charge or underlease as aforesaid whether by deed
          assent or operation of law or otherwise to give written notice and to
          deliver a certified copy to the Landlord's solicitors (or as the
          Landlord may from time to time direct) of such assignment transfer
          underlease assignment of underlease mortgage charge transfer of
          mortgage or

                                                                              24

<PAGE>

          charge or devolution as aforesaid and to pay or cause to be paid to
          the Landlord's solicitors or as the Landlord may from time to time
          direct a reasonable fee not being less than Twenty-five pounds for the
          registration thereof

     3.23 TO PAY LANDLORD'S COSTS

          To pay to the Landlord on receipt of written demand all reasonable and
          proper direct costs charges expenses damages and losses (including but
          without prejudice to the generality of the foregoing solicitors' costs
          counsels' architects' and surveyors' and other professional fees and
          commissions payable to a bailiff) incurred by the Landlord:

          3.23.1 incidental to the preparation and service of a notice under
               Section 146 of the Law of Property Act 1925 and/or in or in
               contemplation of any proceedings under Section 146 or 147 of the
               said Act (whether or not any right of re-entry or forfeiture has
               been waived by the Landlord or a notice served under the said
               Section 146 is complied with by the Tenant or the Tenant has been
               relieved under the provisions of the said Act and notwithstanding
               forfeiture is avoided otherwise than by relief granted by the
               court)

          3.23.2 incidental to the preparation and service of a Schedule of
               Dilapidations at any time during or within 6 calendar months
               after the expiration or earlier determination of the Term
               relating to wants of repair for which the Tenant was responsible
               and which arose during the Term

          3.23.3 in connection with or procuring the remedying of any breach of
               covenant on the part of the Tenant or any person deriving title
               under the Tenant contained in this Lease

     3.24 TO OBSERVE STATUTORY REQUIREMENTS

          At all times and from time to time and at its own expense to execute
          all works as are or may under or in pursuance of any current Act of
          Parliament or European Community Law Regulation or Directive already
          or hereafter to be passed be directed or required to be done or
          executed upon or in respect of the Premises or the user thereof
          whether by the owner and/or the Landlord and/or the Tenant thereof or
          any person deriving title thereunder and to comply with all notices
          which may be served by the public local or statutory authority and not
          to do on the Premises any act or thing whereby the Landlord may become
          liable to pay any penalty imposed or to bear the whole or any part of
          any expenses incurred under any such Act as aforesaid

                                                                              25
<PAGE>

     3.25 PLANNING

          In relation to the Planning Acts:

          3.25.1 At all times during the Term to comply in all respects with the
               Planning Acts and to keep the Landlord indemnified in respect
               thereof

          3.25.2 Save in the case of signage or where permission has already
               been granted to alterations pursuant to clause 3.16 not to apply
               for any planning permission or other planning consent in respect
               of the Premises unless the application permission or other
               consent shall have been approved in writing by the Landlord such
               consent not to be unreasonably withheld or delayed

          3.25.3 Unless the Landlord shall otherwise direct to carry out before
               the expiration or determination of the Term (howsoever the same
               may be determined) any works stipulated to be carried out to the
               Premises by a date subsequent to such expiration or sooner
               determination as a condition of any planning permission which the
               Tenant has implemented or partially implemented

          3.25.4 Forthwith after receiving notice of the same to give full
               particulars to the Landlord of any order notice certificate
               designation direction or other such matter or any proposal
               therefor made given or issued to the Tenant by any competent
               authority under or by virtue of the Planning Acts affecting or
               capable of affecting the Premises and if so required by the
               Landlord to produce such matter or proposal therefor to the
               Landlord

          3.25.5 At the request of the Landlord to make or join with the
               Landlord in making such objection or representation against or in
               respect of any proposal referred to in the previous sub-clause as
               the Landlord shall deem expedient

          3.25.6 If called upon so to do to produce to the Landlord all plans
               documents and other evidence as the Landlord may reasonably
               require in order to satisfy itself that the provisions of this
               sub-clause have been

                                                                              26

<PAGE>

               complied with (but in any event not more than 4 copies)

          3.25.7 Not without the consent of the Landlord to enter into any
               planning obligation under Section 106 of the Town and Country
               Planning Act 1990

          3.25.8 Not without the consent of the Landlord to serve any notice
               under Part VI of the Town and Country Planning Act 1990

     3.26 TO INFORM LANDLORD OF NOTICES

          When the Tenant becomes aware of the happening of any occurrence or
          upon the receipt of any notice order requisition direction or other
          thing which may be capable of adversely affecting the Landlord's
          interest in the Premises the Tenant shall forthwith at its own expense
          deliver full particulars or a copy thereof to the Landlord

     3.27 TO INFORM LANDLORD OF CONTAMINANTS AND DEFECTS

          As soon as the Tenant becomes aware of the same to inform the Landlord
          immediately in writing of the existence of any contaminant or
          pollutant on or any defect in the Premises which might give rise to a
          duty imposed by common law or statute on the Landlord

     3.28 INDEMNITIES

          To indemnify the Landlord in respect of all actions proceedings costs
          claims and demands and any liability arising in any way directly out
          of:

          3.28.1 any act omission or negligence of the Tenant its undertenants
               or any persons at the Premises expressly or impliedly with the
               authority of the Tenant or its undertenants

          3.28.2 the use or occupation of the Premises

          3.28.3 any defect in the Premises caused by the execution of any
               alterations additions or repairs to the Premises by the Tenant
               its undertenants or any persons at the Premises expressly or
               impliedly with the authority of the Tenant or its undertenants

          3.28.4 third party claims which ought to have been covered by
               insurance effected by the Tenant pursuant to Clause 3.4.6

          3.28.5 anything now or during the Term attached to or brought onto the
               Premises by the

                                                                              27

<PAGE>

               Tenant its undertenants or any persons at the Premises expressly
               or impliedly with the authority of the Tenant or its undertenants

          3.28.6 any breach or non-observance (however remote) of any covenant
               on the part of the Tenant contained in this Lease

     3.29 APPLICATIONS FOR CONSENT

          Upon making an application for any consent or approval which is
          required under this Lease the Tenant shall disclose to the Landlord
          such information as the Landlord may reasonably require and shall pay
          on demand all reasonable and proper costs charges and expenses
          (including without limitation legal costs surveyors' fees
          disbursements and stamp duty) incurred by the Landlord resulting from
          all such applications by the Tenant whether such consent or approval
          is granted refused or offered subject to any qualifications or is
          withdrawn

     3.30 TO REMEDY BREACHES BY UNDERTENANTS

          In the event of a breach non-performance or non-observance of any of
          the covenants conditions agreements and provisions contained or
          referred to in this Lease by any undertenant or other person holding
          the Premises as undertenant of the Tenant forthwith upon discovering
          the same to take and institute at its own expense all necessary steps
          and proceedings to remedy such breach non-performance or
          non-observance

     3.31 YIELDING UP

          3.31.1 Immediately prior to the expiration or sooner determination of
               the Term at the cost of the Tenant:

               (a)  to replace any of the Landlord's fixtures and fittings which
                    shall be missing broken damaged or destroyed with others of
                    a similar character and of equal value

               (b)  to remove every moulding sign writing or painting of the
                    name or business of the Tenant or other occupiers from the
                    Premises and to remove all tenant's fixtures and fittings
                    furniture and effects from the Premises making good to the
                    reasonable satisfaction of the Landlord all damage

                                                                              28

<PAGE>

                    caused by any such removal

               (c)  if so requested by the Landlord to remove and make good all
                    alterations or additions made to the Premises at any time
                    during the Term and well and substantially to reinstate the
                    Premises in such manner as the Landlord shall reasonably
                    direct

          3.31.2 At the expiration or sooner determination of the Term
               (howsoever the same be determined but subject to the provisions
               of Clause 9) to yield up to the Landlord the Premises as an
               operational modern high class 4 Star (or equivalent) hotel in
               accordance with all aspects of the Permitted Use in such good and
               substantial repair and condition as shall be in accordance with
               the covenants on the part of the Tenant contained in this Lease
               together with all fixtures fittings improvements and additions
               which now are or may at any time hereafter be in or about the
               Premises (but excepting tenant's fixtures and fittings)

     3.32 TO PAY VAT

          To pay to the Landlord by way of additional rent on receipt of a valid
          VAT invoice any VAT at the rate for the time being in force that may
          be chargeable in respect of any rent or other payment made or other
          consideration or supply provided by the Tenant under the terms of or
          in connection with this Lease and in every case where an amount of
          money is payable or consideration is provided under this Lease such
          amount or consideration shall be regarded as being exclusive of all
          VAT which may from time to time be legally payable thereon and such
          VAT shall be payable on the due date for the payment of such amount or
          the provision of such consideration

     3.33 REIMBURSEMENT OF VAT

          In every case where the Tenant has agreed to reimburse the Landlord in
          respect of any payment made by the Landlord under the terms of or in
          connection with this Lease that the Tenant shall also reimburse any
          VAT paid by the Landlord on such payment unless the VAT is recoverable
          by the Landlord

                                                                              29

<PAGE>

     3.34 SUBSTITUTION OF SURETY

          To notify the Landlord within 28 days of any of the following events:

          3.34.1 If any surety being an individual (or if individuals any one of
               them) shall become bankrupt or make any assignment for the
               benefit of or enter into any arrangement with his creditors
               either by composition or otherwise or have a receiver appointed
               under the Mental Health Act 1983

          3.34.2 If any surety being an individual (or if individuals any one of
               them) shall die

          3.34.3 If any surety being a company (or if companies any one of them)
               shall be wound up either voluntarily (save for the purpose of
               amalgamation or reconstruction) or compulsorily or shall have a
               receiver or an administrative receiver appointed or shall for any
               reason be removed from the Register of Companies

          and within 56 days of any such requirement by the Landlord to procure
          that some other person or company reasonably acceptable to the
          Landlord shall execute a guarantee in the form set out in Schedule 4

     3.35 SUPERIOR TITLE RESTRICTIONS

          To observe and perform the covenants and other matters contained or
          referred to in the entries on the Register of the freehold title out
          of which this Lease is granted so far as the same affect the Premises
          and are still subsisting and capable of taking effect

4    SURETY'S COVENANTS

     The Surety HEREBY COVENANTS with the Landlord in the manner set out in
     Schedule 4

5    LANDLORD'S COVENANTS

     The Landlord HEREBY COVENANTS with the Tenant as follows:

     5.1  QUIET ENJOYMENT

          That the Tenant paying the rents hereby reserved and performing and
          observing the covenants and agreements on the part of the Tenant
          contained in this Lease shall and may peaceably hold and enjoy the
          Premises during the Term without any interruption by the Landlord or
          any person rightfully claiming through under or in trust for it

                                                                              30

<PAGE>

     5.2  INSURANCE

          5.2.1 At all times during the Term (save to the extent that such
               insurance shall be voided and subject to such exclusions and
               qualifications as the Insurers shall require) to insure and keep
               insured the Premises in some reputable insurance office on normal
               market terms against loss or damage by the Insured Risks in the
               Full Cost of Reinstatement and also against the Loss of Rent and
               whenever reasonably required (but not more frequently than once
               in every calendar year) to produce to the Tenant relevant details
               of such insurance and evidence of the payment for the last
               premium for the same and to ensure that the Tenant's interest is
               noted on the policy

          5.2.2 In the event the Premises or any part thereof shall be damaged
               or destroyed by any of the Insured Risks (and so long as such
               insurance shall not have been voided) as soon as practicable
               after the necessary labour and materials and any necessary
               permissions shall have been obtained (and having used reasonable
               endeavours to obtain such permissions) to cause all monies
               received in respect of such insurance (other than for the Loss of
               Rent) to be laid out in reinstating the Premises or the relevant
               part thereof (the Landlord making up any shortfall from its own
               resources) PROVIDED ALWAYS THAT:

               (a)  the Landlord shall not be under any obligation to insure any
                    fixtures or fittings installed by the Tenant which have
                    become part of the Premises unless the Tenant shall have
                    previously notified the Landlord in writing of such
                    installation together with the reinstatement value for
                    insurance purposes of such fixtures or fittings and the
                    Landlord has agreed in writing with the Tenant to effect
                    such insurance at the cost of the Tenant

                                                                              31

<PAGE>

               (b)  the covenant by the Landlord as to reinstatement shall be
                    satisfied if the Landlord provides in the premises so
                    reinstated accommodation as convenient and commodious as is
                    practicable but not necessarily identical to the Premises as
                    the same existed prior to such damage or destruction and

               (c)  if any competent authority shall refuse permission for or
                    otherwise lawfully prevent any rebuilding or reinstatement
                    of the Premises or any rebuilding or reinstatement shall be
                    otherwise impossible impracticable or frustrated all
                    relevant insurance monies (so far as not laid out as
                    aforesaid) shall as between the Landlord and the Tenant be
                    receivable by the Landlord for its own use and benefit
                    absolutely

          5.2.3 The Landlord will at all times liaise with the Tenant in respect
               of all aspects of the insurances effected pursuant to the terms
               of this clause 5 though on the clear understanding that the
               Landlord retains an absolute discretion at all times as to the
               amount terms conditions and locus of any cover that may be put in
               place

6    PROVISOS

     6.1  FORFEITURE

          Without prejudice to any other remedies and powers contained in this
          Lease or otherwise available to the Landlord:

          6.1.1 If the Rents or any part thereof shall at any time be in arrear
               for twenty one days after the same shall have become due (whether
               formally demanded or not) or

          6.1.2 If there shall be any material breach non-

                                                                              32

<PAGE>

               performance or non-observance of any of the covenants and
               conditions on the part of the Tenant contained in this Lease or

          6.1.3 If a Bankruptcy Order or an Administration Order is made in
               respect of the Tenant or

          6.1.4 If a resolution is passed or an Order is made for the winding-up
               of the Tenant otherwise than a member's voluntary winding-up of a
               solvent company for the purpose of amalgamation or reconstruction
               previously approved by the Landlord (such approval not to be
               unreasonably withheld) or

          6.1.5 If a receiver or administrative receiver is appointed over the
               whole or any part of the property assets or undertaking of the
               Tenant or

          6.1.6 If the Tenant is struck off the Register of Companies or is
               dissolved or (being a corporation or company incorporated outside
               Great Britain) is dissolved or ceases to exist under the laws of
               the country or state of its incorporation

          THEN and in any such case it shall be lawful for the Landlord at any
          time thereafter (and notwithstanding the waiver of any previous right
          of re-entry) to re-enter into and upon the Premises or any part
          thereof in the name of the whole whereupon this Lease shall absolutely
          cease and determine but without prejudice to any rights or remedies of
          the Landlord in respect of any antecedent breach of any of the
          covenants or conditions contained in this Lease

     6.2  ABATEMENT OF RENT

          If the Premises or any part thereof or access thereto or services
          benefiting the same shall be destroyed or damaged by any of the
          Insured Risks against which the Landlord covenants to maintain
          insurance so as to be unfit for occupation and use (and provided that
          the policy or policies of insurance effected by the Landlord in
          respect of the Loss of Rent and/or the cost of reinstatement shall not
          have been voided) the Yearly Rent (or a fair proportion thereof
          according to the nature and extent of the damage sustained) shall be
          suspended from the date of the damage or destruction until the
          Premises shall have again been rendered fit for occupation and use and
          in the event of there being some disagreement as to the proportion or
          period of such abatement the same shall be referred to arbitration as
          hereinafter provided

     6.3  DETERMINATION

          If (save where any policy or policies of insurance effected by the
          Landlord in

                                                                              33

<PAGE>

          respect of the cost of reinstatement shall have been voided) the
          Premises or any part thereof or access thereto or services benefiting
          the same shall be destroyed or damaged by any of the Insured Risks
          against which the Landlord covenants to maintain insurance so as to be
          unfit for occupation and use and the same shall not have been rendered
          fit for occupation and use within five years thereafter then (without
          prejudice to all other rights then available to the parties) either
          the Landlord or the Tenant shall be entitled by notice in writing
          served upon the other of them at any time thereafter (but before the
          Premises shall have again been rendered fit for occupation and use) to
          determine this Lease absolutely

     6.4  NO IMPLIED EASEMENTS

          6.4.1 The operation of Section 62 of the Law of Property Act 1925 and
               the rule in Wheeldon v. Burrows shall be excluded from this Lease
               and the only rights granted to the Tenant are those expressly set
               out in this Lease

          6.4.2 Neither the granting of this Lease nor anything contained in
               this Lease shall by implication of law or otherwise operate or be
               deemed to confer upon the Tenant (nor shall the Tenant during the
               Term acquire or become entitled by any means whatsoever to) any
               easement right or privilege whatsoever from over against or
               affecting any other land or premises now or at any time hereafter
               belonging to the Landlord and not comprised in this Lease or any
               adjoining or neighbouring premises

     6.5  RIGHTS OF LIGHT AND AIR

          Any light or air at any time enjoyed shall be deemed to be enjoyed by
          consent and not as of right

     6.6  NO RESTRICTIONS ON ADJOINING PROPERTY

          Neither the granting of this Lease nor anything contained in this
          Lease or implied shall:

          6.6.1 impose or be deemed to impose any restriction on the use of any
               land or building not comprised in this Lease or give the Tenant
               the benefit of or the right to enforce or to have enforced or to
               prevent the release or modification of any covenant agreement or
               condition entered into by any purchaser from or by any lessee or
               occupier of the Landlord in

                                                                              34

<PAGE>

               respect of property not comprised in this Lease or

          6.6.2 prevent or restrict in any way the development of any land not
               comprised in this Lease and the Landlord shall have the right at
               any time to make such alterations to or to pull down and rebuild
               or redevelop any adjoining or neighbouring premises or to permit
               the same as it may deem fit without obtaining any consent from or
               making any compensation to the Tenant Provided always that the
               provisions of this Clause 6.6.2 shall not substantially interfere
               with the quiet enjoyment and full beneficial use of the Premises
               by the Tenant

     6.7  ACCEPTANCE OF RENT

          6.7.1 No demand for or acceptance of or receipt of the Rents or the
               grant of any licence or approval or the registration of any
               document by the Landlord after knowledge or notice received by
               the Landlord or its agents of any breach of any of the Tenant's
               covenants hereunder shall be or operate as a waiver wholly or
               partially of any such breach but any such breach shall for all
               purposes of this Lease be a continuing breach of covenant so long
               as such breach shall be subsisting and no person taking any
               estate or interest under the Tenant shall be entitled to set up
               any such demand or acceptance of or receipt for the Rents by the
               Landlord as a defence in any action or proceeding by the Landlord

          6.7.2 If the Landlord shall properly and reasonably refrain from
               demanding or accepting the Rents or any other monies due under
               this Lease in circumstances in which the Landlord has reasonable
               grounds to believe either that the Tenant is in breach of any of
               the provisions of this Lease or that the Tenant might acquire
               against the Landlord any rights or entitlement then
               notwithstanding such restraint interest at the Prescribed Rate
               shall be payable as specified in Clause 3.2 from the due date
               until the Landlord shall accept the Rents from the Tenant

                                                                              35

<PAGE>

     6.8  ARBITRATION

          Any dispute or difference arising between the Landlord and the Tenant
          for the settlement of which provision is made in this Lease for
          arbitration (save where otherwise provided for) shall be referred to
          the decision of a sole arbitrator to be agreed upon by the Landlord
          and by the Tenant or in default of agreement to an arbitrator to be
          appointed at the written request of either the Landlord or the Tenant
          by or on behalf of the then President of the Royal Institution of
          Chartered Surveyors (or his nominee) such arbitrator to act in
          accordance with the Arbitration Act 1996 and his fees shall be within
          his award

     6.9  NO COMPENSATION

          Except where any Act of Parliament prohibits or modifies the right to
          compensation being excluded or reduced by agreement neither the Tenant
          nor any undertenant (whether immediate or derivative) shall be
          entitled on quitting the Premises or any part thereof to claim any
          compensation from the Landlord under the 1954 Act or any other Act of
          Parliament whether enacted before or after the date of this Lease

     6.10 NOTICES

          The provisions of Section 196 of the Law of Property Act 1925 as
          amended by the Recorded Delivery Service Act 1962 shall apply to the
          giving and service of all notices and documents under or in connection
          with this Lease except that Section 196 shall be deemed to be amended
          so that the final words of Section 196(4) "... and that service... be
          delivered" shall be deleted and there shall be substituted: "... and
          that service shall be deemed to be made on the third Working Day after
          the registered letter has been posted. "Working Day" meaning any day
          from Monday to Friday (inclusive) other than Christmas Day Good Friday
          and any statutory bank holiday in England"

     6.11 REPRESENTATION

          The Tenant acknowledges that this Lease has not been entered into in
          reliance wholly or partly on any statement or representation made by
          or on behalf of the Landlord except any such statement or
          representation that is expressly set out in this Lease

     6.12 EFFECT ON WAIVER

          Each of the Tenant's covenants shall remain in force notwithstanding
          the Landlord may have waived or temporarily released that covenant or
          waived or released a similar covenant or condition entered into by any
          tenant of any adjoining or neighbouring premises

     6.13 RELEASE ON ASSIGNMENT OF REVERSION

          The Landlord shall automatically be released from all liability under
          the covenants and conditions on the part of the Landlord contained in
          this Lease upon the assignment or transfer of its reversionary
          interest in the Premises and at the Landlord's request at any time
          after such assignment or transfer the Tenant shall enter into a deed
          in such form as the Landlord may reasonably require and supply

                                                                              36

<PAGE>

          to evidence such release

     6.14 SEVERANCE

          6.14.1 Any provision in this Lease which is void pursuant to Section
               25 of the 1995 Act shall be severed from all remaining provisions
               and such remaining provisions shall be preserved

          6.14.2 To the extent that any provision in this Lease extends beyond
               the limitations set by the said Section 25 but if it did not so
               extend it would remain unaffected by the said Section 25 the
               provisions shall be deemed to be varied so as not to extend
               beyond the said limitations

     6.15 DUE DATES

          In the event of the Landlord (at the request of the Tenant) granting
          any written concession as a result of which the Tenant is entitled to
          defer the payment of any monies due then for all purposes in
          connection with this Lease (and in particular in relation to Section
          17 of the 1995 Act) such monies shall be deemed to fall due on the
          subsequent date agreed between the Landlord and Tenant pursuant to the
          concession in lieu of the earlier date

7    RENT INCREASE

     The amount of the Yearly Rent is to be increased on each anniversary of the
     Term Commencement Date to the amount set out in Schedule 2

8    TENANT'S RIGHT OF FIRST REFUSAL

     8.1  In the event that the Landlord shall at any time during the
          Contractual Term following the expiry of the first five years thereof
          wish to sell the Premises then the Landlord shall firstly offer in
          writing to sell the same to the Tenant ("the Offer")

     8.2  For the purposes of this clause 8 "sell" shall mean the sale of the
          freehold of the Premises or the grant of a lease thereof for a term in
          reversion to this term in consideration of the payment of a premium

     8.3  The Offer shall contain such particularity as to the terms upon which
          the Landlord is prepared to sell the Property which would be
          sufficient to satisfy the requirements of Section 2 of the Law of
          Property (Miscellaneous Provisions) Act 1989 (and shall specifically
          include the then current edition of the conditions of sale applicable
          to the sale of commercial premises recommended by the Law Society or
          the equivalent thereof)

          8.4.1 The tenant shall be entitled within 21 days

                                                                              37

<PAGE>

               of service of the Offer by notice in writing served upon the
               Landlord ("the Counter-notice") to accept or reject the same

          8.4.2 In the event that the Tenant shall fail to serve a
               Counter-notice within the aforesaid period of 21 days or shall
               purport to accept the Offer conditionally then the Tenant shall
               in either such case be deemed to have rejected the same.

     8.5  In the event of the Tenant rejecting or being deemed to reject an
          Offer then the Landlord shall be entitled at any time within six
          calendar months thereafter to sell the Premises to any other party
          upon the terms of the Offer free from the effect of this clause 8.
          Thereafter the Landlord shall not sell the Premises without first
          undertaking the foregoing procedure

     8.6  In the event of the Tenant rejecting or being deemed to reject an
          Offer and the Landlord selling the Premises to another party in
          accordance with Clause 8.5 then the Tenant will forthwith thereafter
          at its cost take such action as is required to vacate any entries that
          the Tenant may hitherto have made against the title of the Landlord to
          the Premises at H M Land Registry

     8.7  Without prejudice to the terms of the foregoing the Landlord agrees to
          afford the Tenant as much notice as possible of any proposals that the
          Landlord may have from time to time within the first five years of the
          Term to sell the Premises albeit on the understanding that nothing in
          this clause 8.7 shall vest in the Tenant any further rights or
          interests save that to receive information

9    LATENT DEFECTS

     9.1  For the purposes of this Lease a latent defect shall be construed as a
          material defect in the construction or design of the physical
          structure or the substantial plant and machinery presently erected on
          or in the Premises which are at any time hereafter the direct cause of
          actual material damage thereto. A latent defect which does not have
          this effect is to be disregarded for the purposes of this Clause 9

     9.2  In the event that at any time within 10 years from the date hereof (a
          period in respect of which time is of the essence of these
          arrangements) any damage shall occur to the Premises by reason of an
          alleged latent defect then the Tenant may within that period (but not
          thereafter) so advise the Landlord in writing ("a Notification"). A
          Notification shall only be of effect for the purposes of this Clause
          9.2 if it is accompanied by a written report from a chartered building
          surveyor fully particularising the damage sustained ("the Damage") and
          latent defect alleged to be responsible for the same ("the Defect")

                                                                              38

<PAGE>

     9.3  The Landlord may within 56 days of receipt of a Notification advise
          the Tenant in writing ("a Counter-notice") whether or not and/or the
          extent to which the Landlord accepts or rejects the existence of the
          Defect and/or the Damage. If the Landlord fails to serve a
          Counter-notice within such period of 56 days then the Landlord shall
          be deemed to have served a Counter-notice rejecting the existence of
          the Defect and the Damage in their entirety

     9.4  For the purposes of enabling the Landlord to assess a Notification the
          Tenant shall (without prejudice and in addition to all other rights
          granted in this Lease to the Landlord) permit the Landlord to have as
          free as possible access to the Premises with workmen advisers and
          necessary equipment and to undertake therein such investigations
          (including intrusive works which the Landlord shall promptly make
          good) as the Landlord shall deem necessary

          9.5.1 If the Landlord serves or is deemed to serve a Counter-notice
               within the contemplation of Clause 9.3 to the effect that the
               Landlord does not accept the Notification in its entirety then
               the Tenant shall be entitled within 56 days thereafter to refer
               the matter to the decision of an independent chartered building
               surveyor ("the Surveyor") to be appointed (in default of
               agreement between the parties as to appointment) by the President
               or next available senior officer of the Royal Institution of
               Chartered Surveyors ("the Institution") upon the application of
               the Tenant. The Surveyor shall be an associate or fellow of the
               Institution with at least 10 years relevant professional
               experience and shall act and conduct his determination as an
               arbitrator within the terms of the Arbitration Act 1996. The fees
               of the Surveyor shall be paid by the Landlord or the Tenant
               according to his discretion

          9.5.2 If the Tenant fails to make reference to the Institution as
               aforesaid within the period of 56 days above referred to then the
               Tenant shall be deemed to have accepted the Counter-notice

     9.6  In the event that the existence (in whole or part) of any Defect
          and/or Damage is established (whether by agreement between the
          Landlord and the Tenant or pursuant to arbitration according to Clause
          9.5) then the Landlord and the Tenant shall thereafter use all
          reasonable endeavours to agree upon the most cost-effective and
          efficient (having regard, inter alia, to the desirability of

                                                                              39

<PAGE>

          maintaining as far as possible the continuity of the business being
          carried on by the Tenant from the Premises) costed program of works
          necessary to make good the Damage ("the Program"). If the Program or
          any aspect thereof shall not be agreed between the parties within 56
          days of the existence of the Defect and/or Damage being established
          then either the Landlord or the Tenant may refer the matter to
          arbitration in accordance with Clause 9.5

     9.7  The Tenant may within 84 days (but not thereafter) of the agreement or
          determination (by whatever means) of the Program submit the same to an
          open market competitive tender under the direction of an architect
          (being a current member of the Royal Institute of British Architects)
          ("the Architect") appointed in writing for that purpose and the Tenant
          shall accept whichever tender the Architect advises (having regard to
          all criteria) is appropriate. The Tenant will thereafter let or
          procure the letting of a building contract to the successful tenderer
          and engage all necessary professional parties required to undertake
          the Program. The Tenant shall procure that the appointed contractor
          and the Architect and all of the aforesaid professionals shall within
          6 calendar months following the commencement of the Program execute
          and deliver to the Landlord (and any mortgagee(s) of the Landlord that
          the Landlord may nominate) duties of care deeds of warranties (in the
          then current market normal forms allowing for at least two
          assignments) to each of which will be appended certified copies of the
          building contract or relevant professional appointment (as the case
          may be) and shall instruct those parties at all times to supply the
          Landlord upon request with such up-to-date information and
          documentation with regard to the Program as the Landlord may require

     9.8  The Tenant shall be responsible for all of the costs incurred in
          undertaking the Program and as soon as reasonably practical following
          the completion thereof (being the issue of a final certificate or
          equivalent pursuant to the building contract applicable thereto) the
          Tenant shall procure that the Architect shall prepare and issue to the
          Landlord and the Tenant a comprehensive final certificate as to the
          total cost thereof (to include all professional fees and other
          ancillary expenses) which the Tenant shall discharge ("the Cost")

     9.9  The Landlord shall be entitled to reimburse the Tenant with the Cost
          (or such part or parts thereof as the Landlord may determine) at any
          time or times and if and when doing so shall pay interest on the
          amount so reimbursed at 5% per annum calculated from the date that the
          same is incurred until reimbursement

     9.10 In the event of the Tenant being granted a New Lease in accordance
          with Clause 10 then one-twenty-eighth part of the Cost (which shall
          exclude VAT) or such part thereof as shall not previously have been
          reimbursed pursuant to Clause 9.9 together with interest thereon at 5%
          per annum calculated from the date that the same is incurred until
          reimbursement shall be deducted

                                                                              40

<PAGE>

          from each of the first 28 consecutive quarterly payments of the annual
          rent payable throughout the term thereof

10   TENANT'S OPTION TO RENEW

     10.1 If the Tenant (here meaning for the avoidance of doubt the Tenant in
          whom this Lease is then lawfully vested and no other party) serves
          notice on the Landlord not more than 12 months or less than 3 months
          before the expiration of the last day of the Contractual Term ("the
          Expiration Date") requesting the Landlord to grant to the Tenant a new
          lease of the Premises THEN provided the Tenant has up to and including
          the Expiration Date paid to the Landlord the Rents and all other sums
          due and demanded under this Lease the Landlord will grant and the
          Tenant will accept a new lease of the Premises ("the New Lease") for a
          term of 15 years from and including the day immediately following the
          last day of the Contractual Term ("the New Lease Commencement Date")

     10.2 The New Lease shall otherwise be upon the same terms and conditions as
          are contained in this Lease save that:

          10.2.1 this Clause 10 shall provide that in the event of the Tenant
               subsequently exercising its right to require the grant to it of a
               further new lease of 15 years upon the expiry of the term thereby
               granted (in 2043) then this Clause 10 shall be omitted from the
               further new lease (with intent that the Contractual Term shall
               not in any circumstances be capable of being extended beyond 55
               years from the Term Commencement Date (until 2058))

          10.2.2 this clause 10 shall provide that in the event of the Tenant
               subsequently exercising its right to require the grant to it of a
               further new lease of 15 years upon the expiry of the term thereby
               granted (in 2043) then the Yearly Rent firstly payable in respect
               of the further new lease shall be the product of the Yearly Rent
               lastly payable pursuant to the New Lease (or such rent that would
               have been payable but for any abatement pursuant to Clause 6.2)
               and 1.025 and that the same will thereafter increase at annual
               intervals on a compounded basis by 2.5% per annum in the same way
               as the Yearly Rent reserved by the New Lease would hitherto have
               increased and Schedule 2 to that further new lease shall so
               provide

                                                                              41
<PAGE>

          10.2.3 save for the effect thereon of the operation of Clause 9.10 the
               Yearly Rent firstly reserved shall be (pound)7,416,531 and shall
               thereafter increase at annual intervals on a compounded basis by
               2.5% per annum (in the same way as the Yearly Rent is increased
               from and after the fifth year of the Contractual Term in
               accordance with the Schedule 2 to this Lease) and Schedule 2 to
               the New Lease shall so provide

          10.2.4 the words "... following the expiry of the first five years
               thereof ..." shall be deleted from Clause 8.1

          10.2.5 Clause 9 shall be excluded

11   THE CHATTELS

     The Landlord warrants that it is the absolute unfettered proprietor of all
     of the Chattels and that there are no impediments of any description to the
     same being the subject matter of this Lease

12   APPLICABLE LAW

     12.1 This Lease shall be governed by English law

     12.2 The parties submit to the non-exclusive jurisdiction of the High Court
          of Justice in England

     12.3 The Surety irrevocably appoints Stephenson Harwood of 1 St Paul's
          Churchyard London EC4M 8SH as its agent for the service of process in
          England and Wales service upon whom shall be deemed completed whether
          or not forwarded to or received by the Surety

13   THIRD PARTY RIGHTS

     Except as permitted prior to the coming into force of the Contracts (Rights
     of Third Parties) Act 1999 the parties to this deed do not intend that any
     of its terms shall be enforceable by any third party

14   AGREEMENT FOR LEASE

     This Lease has been completed in accordance with an Agreement dated 22
     October 2002 between (1) the Landlord (2) the Tenant and (3) the Surety

IN WITNESS whereof this document has been executed as a Deed and was delivered
by the parties the day and year first before written

                                                                              42

<PAGE>

                                   SCHEDULE 1

                          (PARTICULARS OF THE PREMISES)

All those self-contained hotel and theatre premises presently known as The
Bernard Shaw Park Plaza Hotel 100-110 Euston Road London NW1 2AJ as the title to
the freehold thereof comprises the whole of the land and premises presently
registered under title number NGL20662 as the same is edged red on the plan
attached hereto

                                                                              43

<PAGE>

                                   SCHEDULE 2

                                (INCREASED RENTS)

<TABLE>
<CAPTION>
                                             Amount of Rent Firstly
                                             reserved to apply from
                                            the relevant Anniversary
                                            of the Term Commencement
Anniversary of the Term Commencement Date         Date (L p.a.)
-----------------------------------------   ------------------------
<S>                                         <C>
First                                             3,150,000.00
Second                                            4,000,000.00
Third                                             4,308,000.00
Fourth                                            4,415,700.00
Fifth                                             4,526,093.00
Sixth                                             4,639,245.00
Seventh                                           4,755,226.00
Eighth                                            4,874,107.00
Ninth                                             4,995,960.00
Tenth                                             5,120,859.00
Eleventh                                          5,248,880.00
Twelfth                                           5,380,102.00
Thirteenth                                        5,514,605.00
Fourteenth                                        5,652,470.00
Fifteenth                                         5,793,782.00
Sixteenth                                         5,938,627.00
Seventeenth                                       6,087,093.00
Eighteenth                                        6,239,270.00
Nineteenth                                        6,395,252.00
Twentieth                                         6,555,133.00
Twenty-First                                      6,719,011.00
</TABLE>

                                                                              44

<PAGE>

<TABLE>
<S>                                         <C>
Twenty-Second                                     6,886,986.00
Twenty-Third                                      7,059,161.00
Twenty-Fourth                                     7,235,640.00
</TABLE>

                                                                              45

<PAGE>

                                   SCHEDULE 3

                                     PART 1

                                (RIGHTS GRANTED)

The following rights are granted to the Tenant and all other parties authorised
by the Tenant or otherwise entitled to such rights:-

1    the right to display such flags, canopies and other signage as is
     appropriate for an hotel of this style and class;

2    the free and uninterrupted access along all passageways serving the
     Premises including, for the avoidance of doubt, Weir's Passage;

3    the right to erect such aerials and other telecommunications equipment on
     the roof of the Premises as may be necessary for the carrying out of the
     Tenant's business at the Premises

                                     PART 2

                                (RIGHTS RESERVED)

The following rights are reserved to the Landlord and all other persons
authorised by the Landlord or otherwise entitled to such rights:

1    The right to enter upon the Premises for all or any of the purposes
     mentioned in this Lease

2    The free and uninterrupted passage and running of water soil gas
     electricity and other services from and to all adjoining or neighbouring
     premises through and along all the Conduits which are now or may during the
     Term be in on over or under the Premises and the right to relay move
     maintain and make connections with any of the Conduits and to lay move and
     maintain new Conduits PROVIDED that the persons exercising such rights
     shall cause as little disturbance and damage as reasonably practicable and
     shall make good all physical damage to the Premises occasioned by the
     exercise of this right

3    All rights of light or air now subsisting or which might (but for this
     reservation) be acquired over any adjoining or neighbouring premises

4    Full rights of support shelter and protection from the elements either now
     or intended to be enjoyed in connection with adjoining buildings or
     structures erected or to be erected adjoining over or under the Premises

5    The right to demolish build alter and add to and thereafter to maintain
     buildings structures and fixtures upon into or projecting over or under or
     taking support from the Premises provided that such buildings structures
     and fixtures shall not become nor form part of the Premises

6    The mines and minerals under and the airspace surrounding the Premises

                                                                              46

<PAGE>

7    All other easements or other rights in the nature of easements now enjoyed
     by any adjoining or neighbouring premises

                                     PART 3

                    (MATTERS TO WHICH THIS LEASE IS SUBJECT)

1    The matters mentioned in the Property and Charges Registers of Title Number
     NGL20662 as at 18th September 2002 (save for Entries 5 and 6 in the Charges
     Register)

2    An agreement of _______________ 2002 between (1) The Landlord and (2)
     Vodafone Limited pertaining the installation of telecommunications
     apparatus at the Premises

                                     PART 4

                                (INFERIOR LEASE)

<TABLE>
<CAPTION>
DATE         DESCRIPTION               PARTIES
----         -----------               -------
<S>          <C>                       <C>
05.05.1971   Electricity Sub-Station   (1) Epic Commercial Properties Limited
                                       (2) The London Electricity Board
</TABLE>

                                                                              47

<PAGE>

                                   SCHEDULE 4

                              (SURETY'S COVENANTS)

THE SURETY in consideration of this Lease having been granted at the request of
the Surety by way of full indemnity covenants with the Landlord:

1    GUARANTEE OF TENANT'S PERFORMANCE

     That for the period during which the Tenant is bound by the tenant's
     covenants of this Lease the Tenant will pay the rents and other sums
     payable hereunder on the days and in manner aforesaid and will duly perform
     and observe all the Tenant's covenants in this Lease and that in case of
     default the Surety will pay and make good to the Landlord on demand all
     loss damages costs and expenses thereby arising or incurred by the Landlord

2    FURTHER LEASE ON FORFEITURE OR DISCLAIMER

     If this Lease is forfeited or disclaimed under any statutory or other power
     to take from the Landlord if so required by notice to the Surety within
     three months after such forfeiture or within three months after the
     Landlord shall receive written notice of such disclaimer a new lease of the
     Premises for the residue of the Term unexpired at the date of such
     forfeiture or disclaimer and at the Rents then payable and subject to the
     terms of this Lease in every respect and to execute and deliver to the
     Landlord a counterpart thereof and pay to the Landlord the costs thereof

3    TO MAKE PAYMENTS FOLLOWING FORFEITURE OR DISCLAIMER

     If this Lease shall be forfeited or disclaimed and for any reason the
     Landlord does not require the Surety to accept a new lease of the Premises
     in accordance with the preceding paragraph 2 the Surety shall pay to the
     Landlord on demand an amount equal to the rents hereby reserved for the
     period commencing upon the date of such forfeiture or disclaimer and ending
     on whichever is the earlier of the following: (a) the date six months after
     such forfeiture or disclaimer and (b) the date (if any) upon which the
     Premises are re-let

4    DISCHARGE

     The Surety shall as between the Surety and the Landlord and without
     affecting the Tenant's obligations be liable as sole principal debtor as a
     primary and separate obligation and not merely as surety or guarantor and
     without prejudice to the generality of the foregoing shall not be
     discharged from liability under this Lease notwithstanding:

     4.1  Any time indulgence concession or waiver granted by the Landlord to
          the Tenant or any neglect or forbearance of the Landlord in enforcing
          the payment of the rents hereby reserved or the observance or
          performance of the covenants or other terms of this Lease

     4.2  Any refusal by the Landlord to accept rents tendered by or on behalf
          of the Tenant at a time when the Landlord was entitled (or would after
          the service of a notice have been entitled) to re-enter the Premises

     4.3  The transfer of the Landlord's reversion or the release of any other

                                                                              48

<PAGE>

          surety

     4.4  (Save to the extent required by section 25 of the 1995 Act) the
          assignment of the Lease

     4.5  That the terms of this Lease may have been varied by agreement between
          the Landlord and Tenant for the time being

     4.6  That the Tenant shall have surrendered part of the Premises in which
          event the liability of the Surety under this Lease shall continue in
          respect of the part of the Premises not so surrendered after the
          making of any necessary apportionments

     4.7  The dissolution amalgamation reconstruction or reorganisation of the
          Tenant or other change in its constitution structure or powers

     4.8  The illegality invalidity or unenforceability of or any defect in any
          provision of this Lease or any of the Tenant's obligations under it

     4.9  Any other act or thing by which but for this provision the Surety
          would have been released

5    SECURITY

     So long as any sum is or may be owed by the Tenant under this Lease or it
     is under any obligation hereunder any right of the Surety by reason of
     performance of any of its obligations under this Lease to be indemnified by
     the Tenant or to take the benefit of or to enforce any security or other
     guarantee or indemnity will be exercised and enforced by the Surety only in
     such manner and on such terms as the Landlord may require or approve

6    AVOIDANCE

     If any payment received by the Landlord pursuant to the provisions of this
     Lease is on the subsequent bankruptcy or insolvency of the Tenant avoided
     under any laws relating to bankruptcy or insolvency such payment shall not
     be considered as having discharged or diminished the liability of the
     Surety and this guarantee will continue to apply as if such payment had at
     all times remained owing by the Tenant

7    ADDITIONAL OBLIGATIONS

     The Surety's obligations under this Lease are and will remain in full force
     and effect by way of continuing security until no sum remains payable under
     this Lease and the Tenant has satisfied and performed all its obligations
     under this Lease so that the obligations of the Surety are additional to
     and not in substitution for any security or other guarantee or indemnity at
     any time existing in favour of any person whether from the Surety or
     otherwise

8    WAIVER

     The Surety waives any right it may have of first requiring the Landlord to
     proceed against or enforce any other rights or security or claim payment
     from the Tenant or any other person before claiming from the Surety under
     this Lease

                                                                              49

<PAGE>

9    TRANSFER OF REVERSION

     The Surety agrees that the benefit of the Surety's covenants contained in
     this Lease shall pass automatically to the Landlord's successors in title
     without the need for express assignment and without any consent being given
     by the Surety

                                                                              50

<PAGE>

                                   SCHEDULE 5

                        (AUTHORISED GUARANTEE AGREEMENT)

THIS AGREEMENT is made the __ day of _________________ 20**

PARTIES

(1)  _________ [LIMITED] [PLC] (the "Landlord" ) [whose registered office is at]
     [_____________] [________ and]

(2)  __________ [LIMITED] [PLC] (the "Tenant") [whose registered office is at
     __________ ]

RECITALS:

1    This Deed is supplemental to a Lease (the "Lease") dated the __ day of
     __________ 2003 and made between (1) Euston Road Hotel Limited (2) Accor UK
     Business and Leisure Hotels Limited and (3) Accor S.A. of the premises more
     particularly therein described being the Shaw Park Plaza Hotel 100-110
     Euston Road London NW1 2AJ

2    This Deed is entered into pursuant to Section 16 of the Landlord and Tenant
     (Covenants) Act 1995

OPERATIVE PROVISIONS as follows:

1    In this Deed the following expressions shall have the following meanings:

     1.1  "Assignee" means [_______________]

     1.2  "Assignment" means the assignment to the Assignee authorised by the
          Licence to Assign

     1.3  "Landlord" includes (save where provided to the contrary) his her its
          or their respective successors in title and assigns and where two or
          more persons are included therein shall also include (as the case may
          be) the survivor or the survivors of those persons and shall also
          include the personal representatives of a sole individual or last
          surviving individual Landlord

     1.4  "Licence to Assign" means the consent for the Assignment referred to
          in clause 3.19 of the Lease

2    The Tenant hereby irrevocably and unconditionally GUARANTEES to the
     Landlord as a continuing guarantee the payment when due of all sums due
     owing or outstanding from the Assignee to the Landlord under the Lease and
     the due performance by the Assignee of the covenants on the part of the
     Tenant under the Lease and agrees to indemnify the Landlord from and
     against all losses damages costs and expenses which the Landlord may suffer
     through or arising from any failure by the Assignee to perform any of the
     covenants on the part of the tenant under the Lease or any failure by the
     Assignee duly fully and punctually to pay any such sum or any other sum
     required to be paid by it in relation to or otherwise

                                                                              51

<PAGE>

     to perform its said obligations

3    The Tenant HEREBY FURTHER COVENANTS irrevocably and unconditionally with
     the Landlord that if the Lease is disclaimed the Tenant will (if required
     by the Landlord within six months of the Landlord learning of such
     disclaimer) accept from and execute and deliver to the Landlord a
     counterpart of a new lease of the Property for a term commencing on the
     date of such disclaimer and continuing for the residue then remaining
     unexpired of the Term the Tenant to be responsible for the proper and
     reasonable costs of both parties in connection with such new lease
     (together with any Value Added Tax payable thereon) and to reserve the same
     rents and other sums as are then reserved and made payable by the Lease and
     to be subject to the same covenants conditions and provisions (including
     the provisions for the review of rent at the times and in the manner
     contained in the Lease) as are contained in the Lease

4    All sums payable hereunder by the Tenant shall be paid immediately on
     written demand to the Landlord in full without any deduction withholding
     counterclaim or set off

5    Without prejudice to the Landlord's rights against the Assignee as between
     the Landlord and the Tenant the Tenant shall be liable hereunder as if it
     were solely and principally liable and not merely a surety and its
     liability hereunder shall not be released discharged or diminished by:

     5.1  any legal limitation lack of capacity or authorisation or defect in
          the actions of the Assignee in relation to any invalidity or
          unenforceability of any of the terms of the Lease the bankruptcy
          insolvency or liquidation (or in the case of an individual Assignee
          death or in the case of a corporate Assignee the Assignee ceasing to
          exist) of the Assignee or any change in the Assignee's identity
          constitution status or control; or

     5.2  any forbearance neglect or delay in seeking performance of the
          obligations of the Assignee or any granting of time indulgence or
          other relief to the Assignee in relation to such performance; or

     5.3  any other act or omission fact or circumstance which might otherwise
          release discharge or diminish the liability of a guarantor (but
          subject to section 17 of the Landlord & Tenant (Covenants) Act 1995)

6    This guarantee is given to the Landlord by the Tenant under seal and shall
     enure for the avoidance of doubt not merely for the benefit of the Landlord
     but for the benefit of any successor in title (however such title devolves)
     of the Landlord

PROVIDED ALWAYS THAT nothing in this Deed shall impose on the Tenant any
liability restriction or other requirement (of whatever nature) in relation to
any time after the date on which the Assignee shall have lawfully assigned this
Lease

IN WITNESS whereof this document has been executed as a deed and delivered by
the parties hereto the day and year first above written

                                                                              52

<PAGE>

EXECUTED as a DEED by     )
EUSTON ROAD HOTEL LIMITED )
acting by :

                                        ----------------------------------------
                                        Director

                                        ----------------------------------------
                                        Director

                                                                              53

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]