Document:

10-K

Exhibit 10.ee 

SHARE PURCHASE
AGREEMENT  
Made
and signed as of the 20th day of November, 2007  

By and Between 

Netherlands Industrial Chemical
Enterprises B.V., a private company with limited liability under the laws of the
Netherlands, with corporate seat in Amsterdam, and address at 3606 AK Maarssen,
Planetenbaan 108, (“N.I.C.E.”), on the one part 

– And – 

Merhav Ampal Energy Ltd. a company,
duly incorporated and validly existing under the laws of the State of Israel,
having its registered office at 111 Arlozorov St. Tel-Aviv, Israel, or any other
company fully owned by Ampal-American Israel Corporation (“Ampal”), on the second part,  

        Whereas
N.I.C.E. is the controlling shareholder of Gadot Chemical Tankers And Terminals Ltd.,
Reg. Number 520037037 (“Gadot”), a public company which shares are traded
in the Tel-Aviv Stock Exchange (“TASE”); and 

        Whereas
Ampal offered to N.I.C.E. to purchase from N.I.C.E. its entire holdings of Gadot’s
securities, in an ‘as-is’ transaction outside the TASE, and N.I.C.E. has
accepted such offer, all subject to and in accordance with the terms and conditions set
forth in this Agreement; 

NOW THEREFORE, the parties have
declared, stipulated and agreed as follows: 

	1.  	Definitions  

	 	
In
this Agreement and in addition to the terms defined in the preamble to this Agreement or
elsewhere in this Agreement, the following terms shall have the meanings ascribed to them,
as follows: 

	 	1.1 	“Affiliate” shall
mean (a) with respect to any Person (other than an individual), a person that directly or
indirectly, through one or more intermediaries, controls, is controlled by, or is under
common control with, such person, where “control” means the possession,
directly or indirectly, of the power to direct or cause the direction of the management
policies of a Person, whether through the ownership of voting securities, by contract, as
trustee or executor, or otherwise and (b) with respect to any individual, any relative or
spouse of such Person, or any relative of such spouse, who has the same home as such
Person. 

	 	1.2 	"Bank
Hapoalim" shall mean Bank Hapoalim BM Ltd. 

	 	1.3 	"Bank
Hapoalim Pledge" shall mean a pledge in favor of Bank Hapoalim on the Pledged Shares. 

	 	1.4 	"Bank
Hapoalim Trust Company" shall mean Poalim Trust Services Ltd. 

	 	1.5 	"Business
Day" shall mean a day at which banks are open for business in Israel. 

	 	1.6 	"Closing"
shall mean as defined in Section 6 below. 

	 	1.7 	“ConsiderationAmount” shall
mean an amount of 348,147,000 NIS (three hundred and forty eight million and one hundred
forty seven thousand New Israeli Shekels). 

	 	1.8 	“Governing
Documents” shall mean certificate of incorporation, articles of association and
memorandum of association (if applicable), statutes and by-laws. 

	 	1.9 	"Knowledge"
- actual knowledge based on written information received and without making an inquiry. 

	 	1.10 	"Options"
shall mean Options (Series 1) of Gadot (TASE Security number 1088939). 

	 	1.11 	"Ordinary
Shares" shall mean Ordinary Shares of NIS 0. 1 Par Value of Gadot (TASE Security
number 1088921).

	 	1.12 	“Person” means
any individual, corporation, partnership, association, trust, unincorporated
organization, limited liability company, other entity or group. 

	 	1.13 	“Pledge” shall
mean pledge, levy, charge, encumbrance, lien, security interest, first refusal right or
any other third party right. 

	 	1.14 	“Pledged
Shares” shall mean 37,989,500 (thirty seven million, nine hundred eighty nine
thousand and five hundred) Ordinary Shares, pledged under the Bank Hapoalim Pledge and
registered in the name of Bank Hapoalim Trust Company. 

	 	1.15 	“Purchased
Securities” shall mean 43,275,025 (forty three million, two hundred seventy five
thousand and twenty five) Ordinary Shares, comprised of 39,174,429 (thirty nine million,
one hundred seventy four thousand and four hundred twenty nine) Ordinary Shares, being
the entire Ordinary Shares held by N.I.C.E. at the date hereof plus 4,100,596 (four
million one hundred thousand and five hundred ninety six) Ordinary Shares to be obtained
by N.I.C.E. from the exercise of the Options pursuant to Section 2.1.3 below. 

	 	1.16 	“Real
Estate Pledge” shall mean a pledge on the real estate known as block 7104,
parcel 90/42 in favor of Israel Discount Bank Ltd (“Discount Bank”), as
shown in the extract from the Land Registration Office (“TABO”), and the pledge
number 2 on Euro-Gama Properties Ltd., as shown in the extract from the Companies
Registrar, both attached as Annexes 1.16(1) and 1.16(2) respectively. 

	2. 	Representations
and Warranties of the Parties

	 	2.1. 	N.I.C.E.
hereby represents, warrants and undertakes towards Ampal that as at the
               date hereof and the Closing hereunder: 

	 	2.1.1. 	N.I.C.E.
is a company duly organized and validly existing under the laws of the
               Netherlands, and has full power and authority to enter into this Agreement
and                to carry out its obligations thereunder, and has taken all corporate
or other                action necessary for the authorization, execution, delivery, and
performance of                its obligations under this Agreement.  

	 	2.1.2. 	Neither
the execution and delivery of this Agreement, nor compliance by N.I.C.E.
               with the terms and provisions hereof, conflicts or will conflict with, or
               results or will result in a breach or violation of, any of the terms,
conditions                and provisions of: (i) N.I.C.E.‘s Governing
Documents, (ii) any                judgment, order, injunction, decree, or ruling of
any court or governmental                authority, to which N.I.C.E. is subject, (iii) any
agreement, contract or                commitment to which N.I.C.E., or to the Knowledge
of N.I.C.E.- Gadot, is a party                or by which they are bound, including, but
not limited to any material note,                bond, mortgage, debenture, deed of
trust, license or lease, or                (iv) applicable law.  

	 	2.1.3. 	At
the date hereof N.I.C.E. holds 39,174,429 Ordinary Shares and 4,100,596
               Options, out of which the Pledged Shares are registered in the name of
Bank                Hapoalim Trust Company as security for payment of its debts to Bank
Hapoalim.                Until Closing hereunder N.I.C.E. shall exercise all Options.
Certified copies of                the share certificates, as well as Gadot’s
shareholders’ register and                options register, will be provided to
Ampal as soon as possible following                signature hereof and not later than 5
(five) Business days before Closing.  

	 	2.1.4. 	At
Closing, the Purchased Securities, shall represent approximately63.66% of the
issued share capital of Gadot (on fully diluted basis), shall                be the
entire holdings of N.I.C.E. in Gadot, and except for the Purchased
               Securities (and as set forth in Section 10.1 below) N.I.C.E. does not and
will                not hold any other securities in Gadot or in any Affiliate thereof.  

	 	2.1.5. 	N.I.C.E.
has sole legal and beneficial title to the Purchased Securities and                except
for the Bank Hapoalim Pledge and the registration of the Pledged Shares                in
the name of Bank Hapoalim Trust Company, as specified in Section 2.1.3 above,
               they are free and clear from any Pledge, and at the Closing, they shall be
               transferred to Ampal, free and clear of any Pledge.  

	 	2.1.6. 	All
of the Purchased Securities have been duly authorized, validly issued are
               fully paid up to the date of this Agreement, nonassessable and free of
               preemptive rights and rights of first refusal, offer or similar rights.  

	 	2.1.7. 	Except
for the need to obtain the Approvals as set forth in Section 5 below, no
               consent, approval, permit or, action by any governmental authority on the
part                of N.I.C.E. or to the Knowledge of NICE Gadot is required that has
not been, or                will not have been, obtained by N.I.C.E. or Gadot prior to
the Closing in                connection with the sale of the Purchased Securities
hereunder.  

	 	2.1.8. 	N.I.C.E.
is not aware that Gadot has received any communication from the Israeli
               Securities Authority (“ISA”) or TASE alleging non
compliance by                Gadot with its obligations as a company whose shares are
traded on the TASE.  

	 	2.1.9. 	It
has not been brought to N.I.C.E.‘s attention that (i) the quarterly
               financial reports of Gadot for the period of 6 months ending on June
               30th, 2007, and the annual financial reports of Gadot for
December                31st, 2006 are incorrect in any material respect; or
that (ii) any                periodic reports or immediate notices filed by Gadot with
the ISA or with TASE                contains any “misleading item” (as such
term is defined in the Israeli                Securities Law of 1968).  

	 	2.1.10. 	N.I.C.E.
requested Gadot to provide to Ampal all documents and information                relating
to Gadot and to the Purchased Securities.  

	 	2.1.11. 	N.I.C.E.
is not aware of any facts or circumstances, which would cause the
               representations and warranties of N.I.C.E. contained in this Agreement to
be                untrue.  

	 	2.2. 	Ampal
hereby represents and undertakes towards N.I.C.E. as follows: 

	 	2.2.1. 	Ampal
has full power and authority to enter into this Agreement and to carry out
               its respective obligations thereunder, and has taken all corporate or
other                action necessary for the authorization, execution, delivery, and
performance of                its obligations under this Agreement.  

	 	2.2.2. 	Neither
the execution and delivery of this Agreement, nor compliance by Ampal                with
the terms and provisions hereof, will conflict with, or result in a breach
               or violation of, any of the terms, conditions and provisions of:
               (i) Ampal’s Governing Documents, (ii) any judgment, order,
               injunction, decree, or ruling of any court or governmental authority, to
which                Ampal is subject, (iii) any agreement, contract or commitment
to which                Ampal is a party or by which it is bound, or (iv) applicable
law.  

	 	2.2.3. 	As
at the Closing, Ampal shall have sufficient cash on hand to pay all amounts
               which are payable by it to N.I.C.E. under this Agreement.  

	 	2.2.4. 	Except
for the need to obtain the Approvals as set forth in Section 5 below, no
               consent, approval, permit or, action by any governmental authority on the
part                of Ampal is required that has not been, or will not have been,
obtained by Ampal                prior to the Closing in connection with the valid
execution, delivery and                performance of this Agreement and the purchase of
the Purchased Securities                hereunder.  

	 	2.2.5. 	Ampal
has conducted extensive financial, legal and business due diligence of
               Gadot, and is purchasing the Purchased Securities ‘as is’ and
with no                representation or warranty from N.I.C.E. of any kind or nature in
relation to                Gadot, except as provided herein; and by its signature
hereunder and subject to                the correctness of N.I.C.E’s representations
and warranties set forth in                Section 2.1 above, Ampal irrevocably and
unconditionally waives any and all                demands, contents or claims against
N.I.C.E. in relation to Gadot and the                Purchased Securities.  

	 	2.3. 	The
representations and warranties contained in Sections 2.1.7. – 2.1.11
               (inclusive) herein shall survive the Closing for a period of 3 months
after the                filing of the audited annual financial reports for December 31st,
               2008. 

	3.	Certain
Covenants

	 	
During
the period between the execution of this Agreement and the Closing:  

	 	3.1. 	Covenants
of N.I.C.E.

	 	
N.I.C.E.
          shall:  

	 	3.1.1. 	not
take any action that would cause any of the representations and warranties           made
by it in this Agreement to fail to be true and correct on and as of the           Closing
Date with the same force and effect as if such representations and           warranties
had been made on and as of the Closing Date;  

	 	3.1.2. 	request
Gadot to update the representatives of Ampal on a regular basis           regarding
material operational developments and the ongoing operations and           activities of
Gadot and any Affiliate thereof, including but not limited to any           litigation,
relating to or involving or otherwise affecting Gadot or any such           Affiliate and
to the VLS Transaction.  

	 	3.1.3. 	vote
all of its shares of Gadot to procure that Gadot and any Affiliate thereof
          continues to conduct its business and operations in the ordinary course and in
          accordance with past practice;  

	 	3.1.4. 	vote
all of its shares of Gadot against: (i) disposal of or agreement for the
          disposal of (or the granting of any option in respect of) any material part of
          its assets or create any Pledge on any material part of Gadot’s and any of
          its Affiliates’ assets; except in the ordinary course of business as such
          business is being carried out as at the date hereof and as required to meet
          existing obligations (ii) the issuance or sale of any shares, stock, options or
          other securities or the seeking, negotiation or agreement to any investment,
          direct or indirect, in the equity of Gadot and of any Affiliate thereof other
          than in the ordinary course of business and as required to meet existing
          obligations; (iii) the entering into any financing agreement or the incurrence
          of any material indebtedness other than in the ordinary course of business and
          as required to meet existing obligations including as required for the purposes
          of carrying out the VLS Transaction and the exercise of options for acquiring
          new chemical tankers; (iv) the entering into (or the amendment or the
          termination of material terms of any existing) agreement with a related party;
          (v) the amendment of the Gadot or any of its Affiliates’ Governing
          Documents (except as required in relation to the management change in BAX);
(vi)           the payment of any dividend or any other kind of distribution to
shareholders;           (vii) the payment of any material fee, bonus, stipend, or other
special           compensation to any party other than in the ordinary course of business
and as           required to meet existing obligations;  (viii)  the
merger with           or into another entity other than the VLS transaction; (ix) the
winding-up or           liquidation of Gadot or any Affiliate thereof or (x) an agreement
or undertaking           to do any of the above;  

	 	3.1.5. 	not
sell, transfer, assign or otherwise dispose of any interest in any of the
          Purchased Securities or grant any option over or create or allow to exist any
          Pledge over the Purchased Securities or any of them, other than as contemplated
          in Section 2.1.3 above;  

	 	3.1.6. 	take
all necessary actions required to obtain no later than three (3) Business           Days
before the Closing, Bank Hapoalim’s approval that against payment to           Bank
Hapoalim of the amount stated in such notice it shall release the Bank           Hapoalim
Pledge (“Bank Hapoalim Release Notice”).  

	 	3.1.7. 	take
all necessary actions required to obtain no later than three (3) Business           Days
before the Closing, Discount Bank approval that it shall release the Real
          Estate Pledge (“Real Estate Pledge Release Notice”).  

	 	3.2. 	Covenants
of Each Party. 

	 	3.2.1. 	The
parties hereto shall use their reasonable best efforts to cause the
          transactions contemplated by this Agreement to be consummated as soon as
          possible following signature hereof. Each party hereto, at the reasonable
          request of the other party hereto, shall execute and deliver such other
          instruments and do and perform such other acts and things as may be necessary
          for effecting completely the consummation of this Agreement and the
transactions           contemplated hereby.  

	 	3.2.2. 	None
of the parties hereto will take any action, which results in any of the
          representations and warranties made by such party pursuant to Section 2.1 and
          2.2 hereinabove, as the case may be, becoming untrue or inaccurate in any
          material respect.  

	 	3.3. 	Notification
of Certain Matters. 

	 	3.3.1. 	N.I.C.E.
shall give prompt notice to Ampal, and Ampal shall give prompt notice           to
N.I.C.E., of the occurrence or non-occurrence of any event which results in           any
representation and warranty contained in this Agreement being untrue or
          inaccurate in any material respect and any failure of N.I.C.E. or Ampal, as the
          case may be, to comply with or satisfy in any material respect any covenant,
          condition or agreement to be complied with or satisfied by it hereunder;
          provided, however, that the delivery of any notice pursuant to this Section
          3.3.1 shall not limit or otherwise affect the remedies available hereunder to
          the party receiving such notice.  

	 	3.3.2 	N.I.C.E.
shall give prompt notice to Ampal and Ampal shall give prompt notice to N.I.C.E. of (i)
any notice or other communication from any person alleging that the approval or consent
of such person or Governmental Authority is or may be required in connection with this
Agreement or the transactions contemplated hereby, (ii) any notice or other communication
from any Governmental Authority in connection with this Agreement or the transactions
contemplated hereby, (iii) any litigation, relating to or involving or otherwise
affecting such party that relates to this Agreement, or (iv) any fact, event, change,
development, circumstance, condition or effect that is likely to delay or impede the
ability of such party to consummate the transactions contemplated by this Agreement;
provided, however, that the delivery of any notice pursuant to this Section 3.3.2 shall
not limit or otherwise affect the remedies available hereunder to the party receiving
such notice.  

	 	3.3.3 	All
undertakings of N.I.C.E. and Ampal under Sections 3.3.1-3.3.2 above are limited to
events, facts, circumstances, etc. which are Known to them and which are not generally
known as part of the public domain.  

	4. 	The
Transaction. 

	 	4.1. 	Subject
to the terms and conditions set forth in this Agreement and against
               payment of the Consideration Amount, as at the Closing hereunder N.I.C.E.
shall                sell and transfer to Ampal, and Ampal shall purchase and acquire
from N.I.C.E.,                the Purchased Securities free any clear of any Pledge, in a
transaction outside                the TASE. 

	5. 	Conditions
Precedent

	 	5.1. 	The
obligations of the parties to consummate the transactions contemplated under
               this Agreement, are subject to the fulfillment at or before the Closing of
the                following conditions precedent: 

	 	5.1.1. 	Obtaining
the approval, to the extent required, of the Restrictive Trade                Practices
Commissioner for the transactions contemplated hereunder.  

	 	5.1.2. 	Obtaining
the approval of Bank Hapoalim for the change of control in Gadot                pursuant
to this Agreement.  

	 	
(The
approvals specified in Sections 5.1.1-5.1.2 shall be collectively and separately referred
to as the “Approvals”).  

	 	5.2. 	The
parties shall cooperate and employ their best efforts in obtaining the
                    Approvals as soon as possible following signature hereunder, and with
respect to                     the approval specified in Section 5.1.1, the parties shall
cooperate and employ                     their best efforts in order to submit a request
therefor within 7 days of the                     signature hereunder. 

	 	5.3. 	If,
in spite of the parties’ best efforts under Section 5.2 above, the
                    Approvals shall not be obtained within 60 days from the date of
signature                     hereof, then in such event such period shall be extended
automatically by                     additional 30 days. If, in spite of the parties’ best
efforts under Section                     5.2 above, the Approvals shall not be obtained
within such additional 30 days,                     or a later date as may be agreed in
good faith between the parties, this                     Agreement shall terminate and
become null and void. 

	6. 	Closing

	 	
The
Closing of the transactions contemplated under this Agreement shall take place at the
offices of Yossi Avraham, Arad & Co. five (5) Business Days after the date in which
all Approvals shall have been obtained (the “Closing” and the
“Closing Date”, respectively). At the Closing the parties or their
authorized representatives shall perform the following actions, all of which shall be
deemed to have occurred simultaneously, and no action shall be deemed to have been
completed and no document or certificate shall be deemed to have been delivered, until all
actions are completed and all documents and certificates delivered. 

	 	6.1. 	N.I.C.E.
shall sell and transfer to Ampal the Purchased Securities, in a
               transaction outside the TASE, in the manner further contemplated in this
section                below. 

	 	6.2. 	Ampal
shall transfer to the bank account of N.I.C.E., designated by N.I.C.E. in
               writing prior to Closing, the Consideration Amount less the amount
referred to                in Section 6.5 below which will be transferred to N.I.C.E.‘s
account at                Bank Hapoalim designated in Bank Hapoalim’s Release
Notice. 

	 	6.3. 	Bank
Hapoalim Trust Company and Ampal will sign a Share Transfer Deed, in the
               form attached hereto as Annex 6.3, for the transfer of the Pledged Shares
from                the name of Bank Hapoalim Trust Company to Ampal. 

	 	6.4. 	Bank
Hapoalim will deliver to Ampal a signed notice to the Registrar of Liens
               (Jerusalem office) with respect to the cancellation of the Bank Hapoalim
Pledge. 

	 	6.5. 	Ampal
shall transfer to the bank account of N.I.C.E., designated by N.I.C.E. in
               writing prior to Closing, the amount referred to in Bank Hapoalim’s
Release                Notice. 

	 	6.6. 	N.I.C.E.
and Ampal will sign a Share Transfer Deed, in the form attached hereto                as
Annex 6.6, for the transfer of all the Purchased Securities less the Pledged
               Shares from the name of N.I.C.E. to Ampal. 

	 	6.7. 	N.I.C.E.
will deliver to Ampal Real Estate Pledge cancellation Deeds/Notices,
               signed by Discount Bank addressed to the Land Registration Office
               (“TABO”) and to the Companies Registrar for the purpose of
               cancellation of the Real Estate Pledge. 

	 	6.8. 	N.I.C.E.
will deliver to Ampal (1) a confirmation from Gadot’s secretary                with
respect to the cancellation of the registration of the Purchased Securities
               in the name of Bank Hapoalim Trust Company and N.I.C.E. in Gadot’s
               shareholders’ register and the cancellation of the share certificates
in                the name of Bank Hapoalim Trust Company and N.I.C.E. with respect to
the                Purchased Securities, and (2) a new share certificate in the name of
Ampal                evidencing the purchase herein of the Purchased Securities, and (3)
an evidence                of the registration of the Purchased Securities in the name of
Ampal in                Gadot’s shareholders’ register. 

	 	6.9. 	N.I.C.E.
shall cause Gadot to convene a meeting of the Board of Directors of                Gadot (“Board”),
procure that a legal quorum is present, and                deliver to Ampal and Gadot the
following documents: 

	 	6.9.1. 	resignation
notices of 3 members from the Board effective immediately.  

	 	6.9.2. 	a
resolution of the Board to appoint Mr. Yosef A. Maiman, Dr. Yossef Yerushalmi
               and Mrs. Irit Eluz, , as new members of the Board (“Ampal
               Directors”), such appointment effective immediately.  

	 	6.9.3. 	resignation
notices of the members of the Board, except for Messrs. Moshe                Johananoff
and Yehuda Cohen, the external directors and the Ampal Directors,
               effective immediately.  

	 	6.9.4. 	a
resolution of the Board to appoint Messrs. Leo Malamud and Ofer Gilboa, as new
               members of the Board, such appointment effective immediately.  

	 	6.10. 	The
Parties shall deliver to each other the Approvals (as defined hereinabove),
               to the extent required by them to obtain. 

	 	6.11. 	Each
party shall deliver to the other party a certified copy of a resolution of
               its board of directors, approving the consummation of the transactions
               contemplated hereby including, without limitation (in the case of
N.I.C.E.), the                transfer of the ownership in the Purchased Securities to
Ampal. 

	7.	Post
Closing Covenants

	 	7.1. 	Subject
to the provisions of the law, Ampal shall use all its voting power as
               controlling shareholder of Gadot to ensure that: 

	 	7.1.1. 	Gadot
shall continue to maintain proper Directors and Officers insurance                (“D&O
Insurance”) covering the liability of all directors                and officers
of Gadot, including without limitation, those designated by                N.I.C.E, as
immediately prior to the Closing, until the expiry of the limitation
               period applying to their duties and liabilities associated with their
positions                as directors or officers of Gadot, as the case may be, in
amounts and at a scope                not inferior to that prevailing under the existing D&O
Insurance prior to                Closing.  

	 	7.1.2. 	Gadot
shall respect all of its obligations towards all directors and officers of
               Gadot, including without limitation, those designated by N.I.C.E, as
immediately                prior to the Closing, under any indemnity undertaking or
agreement with such                directors or officers, in amounts and at a scope not
inferior to that prevailing                under the existing indemnity undertaking or
agreement prior to Closing.  

	 	7.2. 	Indemnification. 

	 	7.2.1. 	Each
party shall indemnify (“Indemnifying Party”) the other
               party, its Affiliates and each of their respective officers, directors,
               employees, stockholders, agents and representatives (collectively, the
               “Indemnitees”), upon first written demand by each of the
               Indemnitees against and hold them harmless from any loss, liability,
deficiency,                damage, cost, or expense, or actions in respect thereof
(including reasonable                legal fees and expenses) (“Loss”)
suffered or incurred by any                such indemnified party (“Indemnified
Party”) arising from, in                connection with, relating to or
otherwise in respect of (i) any breach of any                representation and warranty
made by the Indemnifying Party in this Agreement or;                (ii) any breach of
any covenant of the Indemnifying Party in this Agreement.  

	 	7.2.2. 	Other
Claims. In the event any Indemnified Party should have a claim                against
any Indemnifying Party under Section 7.2.1 being asserted against                or
sought to be collected from such Indemnified Party, the Indemnified Party
               shall deliver notice of such claim to the Indemnifying Party with
reasonable                promptness. The failure by any Indemnified Party so to notify
the Indemnifying                Party shall not relieve the Indemnifying Party from any
liability except to the                extent the Indemnifying Party has proved that it
has been prejudiced as a result                of such failure in which case the amount
of the indemnification due from the                Indemnifying Party shall be reduced by
the amount of direct damages proved by                the Indemnifying Party. If the
Indemnifying Party does not notify the                Indemnified Party within 30
Business Days following its receipt of such notice                that the Indemnifying
Party disputes its liability to the Indemnified Party                under Section 7.2.1,
such claim specified by the Indemnified Party in such                notice shall be
conclusively deemed a liability of the Indemnifying Party under                Section 7.2.1
and the Indemnifying Party shall pay the amount of such                liability to the
Indemnified Party on demand or, in the case of any notice in                which the
amount of the Loss (or any portion thereof) is estimated, on such                later
date when the amount of such Loss (or such portion thereof) becomes
               finally determined. If the Indemnifying Party has timely disputed its
liability                with respect to such claim, as provided above, the Indemnifying
Party and the                Indemnified Party shall resolve such dispute as follows: (i)
first, the parties                shall negotiate in good faith for a period of up to 15
Business Days to resolve                such dispute, then (ii) if the Indemnifying Party
and the Indemnified Party are                unable to reach an agreement, they shall
resolve such dispute in accordance with                Section 10.4 hereunder.  

	8. 	Confidentiality
and Stock Exchange Reports

	 	
Without
derogating of Ampal’s confidentiality undertakings towards N.I.C.E. and Gadot
pursuant to the Non Disclosure Agreement signed between the parties dated September 24,
2007 (“NDA”), following the execution of this Agreement and prior to the
Closing, neither party shall provide any information to the press, make a public
disclosure or in any other way provide information to third parties about this Agreement
without the prior written consent of the other party, except in so far as such disclosure
is required by law or by TASE or other stock exchange or other applicable rules, in which
case the party required to disclose such information is obliged to consult in advance with
the other party and consult on the text of the public disclosure. 

	9.  	Termination  

	 	
This
Agreement may be terminated at any time prior to the Closing:  

	 	9.1. 	by
the mutual written consent of Ampal, on the one hand, and N.I.C.E., on the
                    other hand; 

	 	9.2. 	by
either Ampal, or N.I.C.E., without liability on the part of the terminating
                    party for terminating this Agreement (provided that the terminating
party is not                     otherwise in default or in breach of this Agreement), if
N.I.C.E. or Ampal, as                     the case may be, shall (i) fail to perform in
any material respect its                     agreements contained herein required to be
performed prior to the Closing Date,                     or (ii) materially breach any of
its representations and warranties or covenants                     contained herein, and
such failure or breach (under sub sections (i) or (ii)                     above) is not
cured within 20 Business Days of delivery of written notice                     thereof. 

Termination of this Agreement
pursuant to this Section 9 shall terminate all obligations of the parties hereunder,
except for the obligations under Section 10.3, 10.4 and 10.10; provided that termination
pursuant to Section  9.2  shall not relieve the defaulting or breaching party from any
liability to the other party hereto.  

	10. 	Miscellaneous

	 	10.1. 	Gadot
Storage & Handling Ltd. As at the closing hereunder, and
                    without additional consideration to the Consideration paid hereunder,
N.I.C.E.                     shall transfer to Ampal, and Ampal shall acquire from
N.I.C.E., all of                     N.I.C.E.‘s holdings in Gadot Storage & Handling
Ltd. (namely 1,000                     ordinary shares of NIS 1.0 par value each) free
and clear of any Pledge, by the                     parties executing a share transfer
deed in the form attached as Annex 10.1                     hereto. 

	 	10.2. 	Additional
Actions. Without derogating from the other parties’                    obligations
under this Agreement, each of the parties undertakes to sign all
                    documents and carry out all actions which signing or execution by the
parties                     are required to give effect to the provisions of this
Agreement and implement                     them. 

	 	10.3. 	Taxes
and expenses. Except as otherwise expressly provided in this
                    Agreement, whether or not the transactions contemplated hereby are
consummated,                     each of the parties shall bear and pay the taxes and
levies imposed on it (if at                     all) under any law in relation with this
Agreement and the transactions                     contemplated therein. Transfer tax
payable (if at all) in respect of the                     transfer of the Purchased
Securities hereunder, under the Netherlands                     jurisdiction, shall be
borne and paid by N.I.C.E. It is clarified that payment                     of the
Consideration Amount is subject to withholding tax obligations Ampal is
                    subject to according to Israeli laws and regulations, unless and to
the extent                     that N.I.C.E shall provide Ampal with an exemption from
such withholding tax                     obligation. 

	 	10.4. 	Law
& Jurisdiction. This Agreement will be governed by the laws of
                    the State of Israel. The competent courts of Tel-Aviv, Israel shall
jurisdiction                     in any matter pertaining to this Agreement. 

	 	10.5. 	Entire
Agreement. This Agreement, including the all annexes
attached hereto constitutes the entire understanding of the parties
and except for the NDA supersedes all oral or written representations
or agreements, privileges or understandings between the parties.  

	 	10.6. 	Amendments. No
modification or amendment of this Agreement may be                     made except in a
written instrument duly signed by all parties. 

	 	10.7. 	Waivers. A
waiver by a party of any of its rights under this Agreement                     shall not
be effective unless made by a written instrument duly signed by such
                    party, and shall not be deemed a waiver of any other right hereunder. 

	 	10.8. 	Headings. The
headings of several sections in this Agreement are                     inserted only as a
matter of convenience, and shall not be taken into                     consideration in
the interpretation of this Agreement. 

	 	10.9. 	Preamble
and Annexes. The preamble and annexes to this Agreement
                    shall constitute an integral part thereof. 

	 	10.10. 	Notices.
Any notice sent by one party to the others to the addresses set                     forth
in the preamble to this Agreement shall be considered as having reached
                    its destination, if it was delivered by hand, at the time of its
delivery; if it                     was sent by registered mail, within 3 Business Days
from the time it was so                     dispatched; and if it was sent by facsimile,
within 2 Business Days from the                     receipt of the confirmation of proper
transmission of the notice. Any notice to                     Ampal shall be sent with a
copy to Eldad Firon, Adv. and/or Raphael Melman,                     Adv., M. Firon & Co.,
16 Abba Hillel Silver Rd., Ramat-Gan 52506 Fax                     (+972)-3-7540011 and
any notice to N.I.C.E. shall be sent with a copy to Ehud                     Arad, Adv.,
Yossi Avraham, Arad & Co., 3 Daniel Frisch St., Tel-Aviv 64731
                    Fax. (+972)-3-6963801). 

[SIGNATURES ARE ON THE
FOLLOWING PAGE] 

In
witness whereof the parties have set their signatures hereunto: 

——————————————————————

Netherlands Industrial Chemical Enterprises B.V.

By: Mr. Moshe Johannanof

under specific proxy dated

October 25, 2007 

I, the undersigned, Ehud Arad, Adv.,
as legal counsel to Netherlands Industrial Chemical Enterprises B.V., a private company
with limited liability under the laws of Netherlands with corporate seat in Amsterdam
(“N.I.C.E.”), hereby confirm that N.I.C.E. signed upon this Agreement
through its authorized signatory Mr. Moshe Johannanof , according to a resolution duly
adopted by N.I.C.E. and to its constituting documents and I further confirm that the above
signature is binding upon N.I.C.E. for every intent and purpose. 

——————————————
Ehud Arad, Adv. 

——————————————
Merhav Ampal Energy Ltd. 
By: Yosef
A. Maiman & Irit Eluz  

I, the undersigned, Eldad Firon,
Adv., as legal counsel to Merhav Ampal Energy Ltd., co. no. 513754077 (“Ampal”),
hereby confirm that Ampal signed upon this Agreement through its authorized signatories
Mr. Yosef A. Maiman and Mrs. Irit Eluz, according to a resolution duly adopted by Ampal
and to its constituting documents and I further confirm that the above signatures are
binding upon Ampal for every intent and purpose.  

——————————————
Eldad Firon, Adv.10-K

Exhibit 10.ff 

Merhav Ampal Energy Ltd 
Company No. 51-375407-7  

Date: December 3, 2007 

Messrs 
Discount Bank Ltd 

Dear Sirs, 

Re: Irrevocable covenant  

Whereas we, the undersigned, Merhav
Ampal Energy Ltd, Company No. 51-375407-7 (hereafter: “the Company”) have
received and/or are to receive from you, Israel Discount Bank Ltd (hereafter: “the
Bank”), loans, credit, guarantees and sundry banking services (hereafter: “the
credits”) and we accordingly owe and/or shall owe the Bank debts, obligations,
charges and various amounts and all in accordance with the Bank’s records as may be
valid from time to time and at all times (hereafter: “the debts”), and in
connection therewith the Company has signed and/or is to sign, has delivered and/or is to
deliver to the Bank various instruments in connection with the credits and/or the debts
including and inter alia forms, confirmations, letters of conditions, security and bonds,
insurance rights and so forth, in accordance with the Bank’s records as may be from
time to time and at all times; accordingly, as security and bond additional to the credits
and the debts we do hereby irrevocably warrant, consent, attest, confirm and covenant
vis-à-vis the Bank that throughout the entire term until clearance and repayment of
all the debts to the Bank in connection with the credits (hereafter: “the credit
term”), we shall act, shall execute, shall cause to be executed and to be fulfilled
at our sole expense and on our sole responsibility, to the full and complete satisfaction
of the Bank, all of the conditions, the stipulations, the acts and matters set forth
below: 

	 	1. 	Definitions
–

	EBITDA  	Earnings
Before Interest Taxes Depreciation and Amortization. The aggregate amount of operating
profit from routine activity according to the latest financial statements for the four
successive calendar quarters ending on the date of the last financial statements, before
financing expenses (interest, indexation differences, exchange rate and foreign currency
differences and commissions) and taxes together with depreciation expenses in respect of
fixed assets and write down of intangible assets. 

	Means of
control and/or control	 As per the definition thereof in the Securities Law 5728-1968 and any term
in  the said definitions shall be construed in accordance with the aforesaid Law. 

	Shareholders or
party at
interest or owner 	 Any shareholder in the Company and/or office holder in the Company and/or  party at interest in the
Company, either directly or indirectly as is at present
and/or as shall be from time to time and at any time.

	Gadot  	Gadot
Chemical Tankers & Terminals Ltd Company No. 52-003703-7

1

	Dollar  	Dollar
of the United States of America 

	Discount  Trust	
Discount Trust Ltd 

	TASE  	The
Tel-Aviv Stock Exchange Ltd 

	The financial
                                                               statements
 	The annual  financial  statements of the Company and/or Ampal American  and/or
            Gadot severally  (hereafter:  "solo  financial  report") and/or jointly and in consolidation
with all the subsidiaries and investee companies by the Company and/or Gadot and/or Ampal
American (hereafter: “consolidated financial report”) from time to time and at
all times in accordance with any law and in accordance with generally accepted accounting
principles including, inter alia, balance sheet, income statement, cash flow statement,
statement of changes in shareholders’ equity, including the notes thereto, and in
addition thereto any other report, notice and instrument being and/or that shall be
required under any law and/or by any authorities and/or entities and/or competent
concerns; and the annual financial statements shall be audited and the quarterly financial
statements shall be reviewed – by an external auditing accountant, in accordance with
principles, reporting principles and generally accepted accounting standards having been
and/or that shall be established from time to time by the Institute of Certified Public
Accountants in Israel and/or statutorily.

	Shareholders’ equity	
In accordance with the accounting rules and principles generally accepted in Israel
and/or in the United States (all according), being statutorily applicable to public
companies, as they are presented in the financial statements, together with loans granted
to the Company by the owners, and net of loans granted by the Company to the owners and
owners’ withdrawals of any type whatsoever, and also net of intangible assets in
respect of which no payment was made. 

	The determining
date  	 December 31, 2007 

	Gadot shares
 and/or the
                                                                shares
 	The shares  acquired by the  Company  i.e.  43,275,025  shares of NIS 0.1 n.v.
   constituting  65.6% of the  authorized,  issued  and paid up share  capital of Gadot
and 63.6% fully diluted.

	Legal opinion 	
A legal opinion letter signed by an attorney of the Company and addressed to the Bank, in
a wording agreed by the Bank and confirming to the Bank, inter alia, the validity of this
instrument, the credit documents, the security and the bonds, the Company’s holdings
in Gadot and also all means of control and control in Gadot, the holdings of parties at
interest and/or owners in the Company and all the means of control and control in the
Company and all both directly and/or indirectly as far as the ultimate physical owner. 

	Gadot shares acquisition
agreement 	
An agreement whereby the Company acquired shares of Gadot including the whole  complex of agreements and the related appendices 

	The Companies
Law  	The Companies Law 5759-1999 and/or any other law that shall be made in addition
thereto or that shall supersede the Companies Law 

2

	Account  	Account
No. 10492 having been opened in the name of the Company with the Bank, Tel-Aviv
Head Office, Branch No (10), including and together with all
compensation accounts, related accounts, ancillary accounts, secondary accounts, adjunct
accounts, monetary accounts, securities, deposits and more as shall be from time to time
and at all times according to the Bank’s records and its determination in this
matter. 

	The credit
instruments  	All instruments, approvals, reference material, professional, legal and other
opinions, the information, the material, the forms, the letters of conditions, the loan
documents, agreements, arrangements, credit instruments, financing instruments, security
and bonds, this instrument and so forth, as are or may be required the Bank at the sole
discretion of the Bank from time to time and at all times under appropriate signatures,
in wording and under conditions in accordance with the sole requirements and
determinations of the Bank, in accordance with and subject to the procedures and the
rules being in effect and customary with the Bank and also in accordance with the
resolutions of the Bank as shall be from time to time and at all times – which the
Company covenants to deliver to the Bank and/or the execute and/or to cause to be
executed and/or to duly record in a timely fashion, in accordance with the requirements
of the Bank and all at the Company’s expense and on its responsibility and by its
expenditure, and all to the full and complete satisfaction of the Bank. 

	Free and
clear 	 A situation in which there is fulfilled the condition whereby all of the rights,
the assets and the property acquired by the Company pursuant to the Gadot shares
acquisition agreement including (and without derogating from the generality of the
aforesaid) Gadot shares being clear, available, and completely free of all liens,
pledges, attachments, rights of line, setoff rights, claims of right, debts and third
party liabilities whatsoever. 

	 The vendors 	Netherlands Industrial Chemical Enterprises B.V.

	Quarter  	A
continuous period of three months ending March 31, June 30, September 30, and December 31
of each and every year. 

	Assets  	Real
estate, chattels, moneys, rights, property and any other matter and thing in the most
comprehensive and sweeping meaning thereof without limit, including the proceeds and
income thereon, their substitutes, property being the consideration of such property and
any assets having derived or come from the profits of such assets. 

	IFRS  	International
 Financial  Reporting  Standards are standards and  explanations
                          adopted by the International  Accounting Standards  Commission.
 International                           Financing Reporting Standards include: (A) IFRS
and also (B) International Accounting Standards (IAS) and also (C)           Explanations
determined by IFRIC (International Financial Reporting           Interpretations
Committee) or SIC (Standing Interpretations Committee) the           committee that
preceded it in interpreting international accounting standards.

3

	Proportion of
mortgaged shares in Gadot	 43,275,025 shares of NIS 1 n.v. constituting 65.6% of the issued, authorized
 and paid up share capital of Gadot being 63.6% fully diluted. 

	LIBOR  	London
Interbank Borrowing Rate – within the meaning of that term in the Bank as may be
modified from time to time and at all times, at the sole determination of the Bank. 

	Financial debt 	
Debts to banks and/or financial institutions net of cash balances – in accordance
with the financial statements of the Company alone. 

	Ampal American 	
Ampal-American Israel Corporation – a company registered in the United States in
accordance with the laws of the State of New York. 

	 	
As
regards any word, term, phrase, expression and so forth in this agreement not being
defined in this agreement, the meaning, interpretation and definition thereof shall be as
customarily and generally accepted with the Bank, in accordance with the Bank’s
records from time to time and at all times, and also in accordance with the sole
determination of the Bank. The appendices to this document constitute an integral part
hereof. 

	  	2.  	Object
of the financing  

	 	
Acquisition
of the ownership, control and means of control including Gadot shares at a rate of 65.6%
of the share capital of Gadot and the assets of Gadot from the vendors pursuant to the
Gadot Shares Acquisition Agreement (hereafter: “transaction for the acquisition of
ownership, control and means  of control in Gadot”). 

	 	3.  	Rate
of financing – 

	 	3.1	The
Bank shall finance the transaction for the acquisition of ownership, control and means of
control in Gadot including Gadot shares at a rate of up to 65% of the acquisition cost
pursuant to the Gadot shares acquisition agreement. 

	 	3.2 	The
balance of the requisite financing at a rate of some 35% of the acquisition cost of Gadot
shares shall be paid by the Company in cash out of its own resources by way of deposit
into the account – all as a precedent and suspending condition for the provision of
the financing by the Bank.  

	  	4.  	The
financing  

	 	
A
credit framework aggregating NIS 234 million, utilization of the credit framework being
subject to the following conditions (“the credit framework”): 

4

	 	                4.1.1	 

	 	4.1.1.1 	Up
to NIS 117 million for a period of 12 years commencing December 3, 2007 and ending
December 3, 2019 in short term loans of up to one year as is customary with the Bank,
on such terms as shall be agreed between us separately and shall find expression in the
credit instruments, and inter alia, in the matter of: margin, interest, repayments/
payments of principal, interest, indexation differences, exchange rate differences,
clearance tables, commissions, prices, expenses and so forth (hereafter: “Loan I”) 

	 	4.1.1.2 	Interest
on Loan I – Libor plus margin as set forth in Appendix B, with current interest
payments on a quarterly or a six-monthly basis, or on the basis of any other period being
shorter than six months. 

	 	4.1.1.3 	The
unutilized loan commission that shall be paid by the Company to the Bank at the end of
every quarter for the past quarter. The non-utilization commission amount shall be
computed on the basis of a daily computation within the commission calculation period as
aforesaid. 

	 	                4.1.2	 

	 	4.1.2.1 	Up
to an additional NIS 117 million for a period of up to 12 years – regular six
monthly interest payments and principal payments in accordance with the clearance table
annexed to this document as Appendix A and constituting an integral part hereof
(hereafter: “Loan II” 

	 	                           4.1.2.2 	Interest
on Loan II - Libor plus margin as detailed in Appendix B  

	 	4.2 	The
credit framework shall be utilized in dollars as determined in accordance with the
representative rate of exchange as of the first drawdown date of any of the loans  

	 	4.3 	Notwithstanding
the aforesaid, if there shall have occurred an instance of breach, then as from that date
and for as long as the breach event shall not have been rectified to the satisfaction of
the Bank, the credit framework shall be reduced and shall stand at the balance of the
amounts actually utilized at that time and the Company shall not be entitled to utilize
additional amounts out of the credit framework.  

	 	4.4 	As
a condition for granting the loans on account of the credit framework, the Company shall
execute loan provision instruments as customary with the Bank. The Company shall also
warrant with every drawdown application, that until the date of the drawdown application
there has not occurred any breach event that has not been rectified to the satisfaction
of the Bank.  

5

	 	4.5 	Commissions,
margins, prices, costs and expenses – as set forth in Appendix B to this
Document.  

	 	4.6	“Utilization
term”– drawdown and utilization of the credit framework shall take place,
subject to the conditions of this document and the credit instruments, throughout the
period up to and not later than the determining date.  

	 	4.7	 Special
interest increment – it is hereby agreed and emphasized that the interest rates
as per sub-paragraphs 4.1.1.2 and 4.1.2.2 shall automatically increase on service of 7
days notice by the Bank upon the Company by 2% in any event of breach of a material
condition of this document, including all or any of the terms of the keeping of the
current account under our signature, constituting an integral part of this document, for
the entire duration of the breach in accordance with the Bank’s records, and all in
respect of the increase in the risk to the Bank as a result of the breach. This special
interest increment shall be charged by the Bank to the credit account and shall be
defrayed by us separately, plus and together with the interest payments or debits as
outlined above and in addition thereto. To dispel any doubt, it is emphasized that this
special interest increment shall in no instance and under no circumstances be repayable,
even after the amendment of the breach and/or under circumstances in which the Bank
consents to waive or to postpone the implementation of the covenant that was breached, or
to modify it or to allow any extension whatsoever. It is hereby stated that the Bank’s
right to the special interest increment in a state of breach and also the actual
collection thereof as aforesaid, shall not derogate from, shall not delay and shall in no
wise impair any remedy or relief or right or cause available to the Bank against us
pursuant to this document or pursuant to the conditions of the keeping of the current
account under our signature and inter alia, nothing aforesaid is such as to derogate from
the right of the Bank to collect from us or from our obligation to pay to the Bank
arrears interest as outlined hereinafter as an increment to the cumulative interest as
aforesaid, and also from all additional rights and causes being available to the Bank,
under circumstances or in instances of breach or non fulfilment of all or any of our
covenants and the aforesaid in this clause shall be in addition thereto.  

	 	5.	Precedent
and suspending conditions, financial stipulations and covenants

	 	
It
is hereby agreed as precedent and suspending conditions for the granting of the credit and
the continued availability of the credits already granted, and for repayment date not
being brought forward and the credit not being called for immediate payment throughout the
credit term and until the repayment in full and absolute clearance thereof in accordance
with the Bank’s records – there shall apply, be fulfilled and be in existence
all of the conditions, the provisions, the rules, the representations, and matters as set
forth below, and all the other terms or representations of this document, and the Company
(by appending its signature in the margins of this document), hereby irrevocably consents
and covenants toward the Bank to fulfil and execute them and/or to take steps to cause
that they be fulfilled and executed to the full and complete satisfaction of the Bank in
accordance with the Bank’s assessments and reasonable and sole discretion, through
the entire credit term until the full and absolute payment and repayment thereof in
accordance with the Bank’s records and at its determination, and all in addition to
and without derogating from all of stipulations, the conditions and the requirements of
the credit instruments, these being the rules, the matters, the provisions and the
conditions to which the Company covenants towards the Bank as stated: 

6

	 	5.1 	The
Company  

	 	5.1.1 	Matters
agreed, approvals and legal opinion – the Company shall deliver to the Bank the
following instruments:  

	 	5.1.1.1 	A
legal opinion in such and wording as shall be agreed  between the parties;  

	 	5.1.1.2 	All
of the matters agreed and the approvals required in order to validate the transaction for
the acquisition of ownership, control and means of control including the Gadot shares and
so forth  

	 	5.1.1.3 	The
Gadot shares acquisition agreement duly executed and/or prepared and/or made by the
parties thereto, the Gadot shares acquisition agreement being fully valid and the Company
having fulfilled all of its covenants in accordance therewith and that were due to be
fulfilled prior to date of execution of this document.  

	 	5.1.1.4 	All
of the Company’s rights pursuant to the Gadot shares acquisition agreement are clear
and free.  

7

	 	                  5.1.2	 

	 	5.1.2.1 	The
balance of the Company’s credit with the Bank shall not exceed the economic value of
the Gadot shares mortgaged to the Bank multiplied by 0.833. The economic value of the
Gadot shares mortgaged to the Bank shall be determined in accordance with valuations that
shall be delivered to the Bank by the Company. To date of the first valuation made
following acquisition of the aforesaid shares, the value of the shares shall be
determined on the basis of the acquisition price. 

	 	5.1.2.2 	The
aforesaid measurements shall be made by the Bank continuously and regularly in accordance
with criteria and procedures and rules being in effect and generally accepted with the
Bank and the determination of the data detailed above shall be at with the Bank’s
sole discretion and in accordance with the Bank’s sole resolutions.  

	 	5.1.2.3 	The
Company shall deliver to the Bank a valuation, once a year, at the Bank’s demand,
within 60 days of the date of demand. The valuation shall be made by one of the five
major accountancy firms in Israel or by one of the three major firms in Israel engaging
in corporate valuations – and all to the satisfaction of the Bank.  

	 	5.1.3 	Control
and means of control in the Company –  

	 	
The
ownership and control position in the Company including the holdings of all means of
control of its authorized, issued and paid up share capital is as follows:

	 	
Itemization
of holdings of the means of control: 

	Name
	Registration/identity

number
	Particulars of shares

and class of shares
	% Holdings

	 			
				
				
				
	Ampal Energy Ltd	51-375377-2	Ordinary shares	100%

	 	
The
ownership structure of all of the means of control and control of the Company as set
forth hereinabove shall be preserved and maintained at all times, such that, subject to
this condition, there shall not be mortgaged, shall not be attached, shall not be sold,
shall not be assigned, shall not be transferred and shall not be diluted any of the
shares and/or the holdings and/or the rights of Ampal American in the Company

	 	5.2	Ampal
American 

	 	5.2.1 	The
shareholders’ equity of Ampal American as set forth in the solo financial report of
Ampal American shall be not less than the higher of the sum of 200 million dollars or a
rate of 35% of the balance sheet total.  

8

	 	5.2.2 	Control
and means of control -  

	 	
The
ownership and control position in Ampal American including the holdings of all of the
means of control in its authorized, issued and paid up share capital is as follows: 

	 	
Details
of holdings of the means of control:  

	Name
	Registration/

identity number
	Particulars of shares and

class of shares
	% Holdings

	 			
				
				
				
	Merhav (M.N.F) Ltd	510618556	4,476,389 shares	7.8%
	De Majorca Holdings Ltd	513920157	18,850,153 shares	32.7%
	Di-Rapallo  Holdings Ltd	513900969	9,650,132 shares	16.7%

	 	
The
ownership structure shall always be preserved and shall persist, in all the means of
control and the control over Ampal American as set forth hereinabove in this clause, such
that, subject to this condition, the shares and/or the holdings and/or the rights of
Yossi Maiman in Ampal American shall not be mortgaged, shall not be attached, shall not
be sold, shall not be assigned, shall not be transferred and shall not be diluted to
below the rate of a 40% direct and/or indirect holding in Ampal American. 

	 	5.2.3 	Ampal
American shall not pay and shall not make any distribution (within the definition thereof
in the Companies Law) and shall not covenant to pay in any shape or form whatsoever,
either direct or indirect, any amounts of money out of its earnings or its equity or out
of any other source whatsoever, including dividends (within the definition thereof in the
Companies Law) or interest or management fees or compensation or indemnification or
consultation fees or any amounts of money or cash equivalents in any shape or form
whatsoever to parties at interest and/or to its shareholders and/or to its controlling
shareholders and/or to companies and/or corporations any of whose shareholders is a party
at interest therein and/or to any third party whatsoever that may replace or appear on
behalf of any of the abovementioned. The covenants per this sub-paragraph 5.2.3 shall not
apply to transactions between Ampal American and parties at interest therein and/or to
its shareholders and/or to companies and/or corporations any of whose shareholders is a
party at interest therein and/or to any third party whatsoever that may replace or appear
on behalf of any of the abovementioned and that shall have been approved as interested
party transactions in accordance with the law being applicable to Ampal American for this
purpose.  

	 	
If
there shall not have occurred any event of breach vis-à-vis the Bank, the Company
will be permitted to pay the controlling shareholder management fees or compensation or
indemnification or consultation fees provided that the payment of such moneys shall not
result in a breach of its covenants vis-à-vis the Bank, either at the time of the
drawdown or throughout the entire credit term.

9

	 	5.2.4 	Ampal
American covenants not to acquire, not to provide financing for the acquisition of, and
also not to covenant to acquire or provide financing for the acquisition of shares of
Ampal American, in any shape or form whatsoever, including and without derogating from
the generality of the aforesaid, by providing guarantee, either directly or indirectly,
to the Company or to a subsidiary of the Company or to a corporation under their control,
without obtaining the prior written consent of the Bank so to proceed, and all with the
exception of statutorily approved interested party transactions under the law applying to
Ampal American for this purpose.  

	 	5.3 	Gadot  

	 	5.3.1 	The
ratio between the financial debt of Gadot and its EBITDA according to its consolidated
financial report shall not exceed the following volumes:  

	 	Period
	Debt / EBITDA ratio

	 	 	
	 		
	 		
	 		
	 	To June 30, 2010	Not more than 7
	 	From July 1, 2010 to June 30, 2011	Not more than 6
	 	From July 1, 2001 and thereafter	Not more than 5

	 	5.3.2 	The
shareholders’ equity of Gadot under IFRS principles as set forth in the consolidated
financial report – shall be not less than the higher of the sum of NIS 170 million
(linked to the Consumer Price Index commencing as from date of execution of this
document) or than a rate of 13% of total balance sheet.  

	 	5.4 	All
financial  ratios are to be measured on a quarterly basis 

	  	6.  	Security
and guarantees  

	 	
As
additional precedent and suspending conditions for the allocation of the credit framework
and the utilization thereof, the Company shall deliver to the Bank and/or shall cause to
be issued and delivered to the Bank the security and the guarantees as detailed below, and
all being first ranking, and solely and exclusively to credit of the Bank and also in such
wording and on such conditions as shall be required by the Bank, to the full and complete
satisfaction of the Bank, as follows: 

	 	6.1 	All
(100%) of the Company’s shares in Gadot, i.e. 43,275,025 Gadot shares constituting
65.6% (and, fully diluted – 63.6%) of the total authorized, issued and paid up share
capital of Gadot including all of the proceeds thereof and also the account including all
the moneys and securities being and or that shall be on deposit therein.  

10

	 	6.2 	The
shares shall be transferred into the name of Discount Trust Ltd in accordance with the
conditions set forth in the irrevocable instructions of the Company to Discount Trust. At
the request of the Bank, the Company will cooperate with it in restoring the shares to
marketability on the Tel-Aviv Stock Exchange.  

	 	6.3 	All
of the Company’s rights in respect of the Gadot shares acquisition agreement,
including all of the rights and/or assets and/or shares and/or moneys and/or anything
else of any type and kind whatsoever, either direct and/or indirect being due and/or that
shall become due to the Company in accordance and/or in connection with and/or by virtue
of the Gad shares acquisition agreement.  

	 	6.4	 

	 	                  6.4.1 	All
the amounts, the income, and the payments without exception being and/or that shall
become due, being and/or that shall become payable to the Company from Gadot in respect
of the Company’s holdings in shares of Gadot and inter alia management fees,
consultancy fees, dividends, distribution (within the meaning thereof in the Companies
Law), refunds, cash flow and so forth – shall be deemed to be and shall always be
subject to the mortgage rights and rights of lien in favour of the Bank and shall be
directly transferred solely to the account and shall serve, entirely and fully, by way of
exercise of the rights of lien and setoff of the Bank in the framework of the security
and the guarantees to be credited on account of the Company’s debts towards the Bank
in respect of the credit at that time, which shall be reduced accordingly. 

	 	6.4.2 	In
any situation in which the dividend amounts payable to the Company by Gadot exceed the
volume of current payments on account of the loan’s current maturities, and no event
of breach shall have occurred towards the Bank, then such excess balance shall be
credited to the account of the Company, provided that the Company seeks permission, in
writing, from Discount Trust Ltd to credit its account with the Bank and the Bank
approves the transfer.  

	 	6.5 	In
any instance in which the issued and paid up share capital of Gadot is increased as a
result of an increase of capital and/or issuance, and/or under any other and/or
additional circumstances, without exception, at any time and at all times – then the
Company hereby covenants to further increase the quantity of shares in Gadot being
mortgaged to the Bank all by way of creating additional liens such that all Gadot shares
being mortgaged to the Bank by the Company at any point in time and at all times shall be
not less than a rate of 51% of the fully diluted issued and paid up share capital of
Gadot. In any event the result of the aforesaid transactions shall not give rise to a
breach of the ratio described in sub-paragraph 5.1.2.1  

11

	 	6.6 	Guarantee
of unlimited amount of Ampal American to secure all of the Company’s debts to the
Bank in respect of the credit, in unlimited amount, in such wording and on such
conditions as the Bank may require.  

	 	7  	The
Bank shall retain the option of selling and/or transferring and/or endorsing and/or
assigning and/or securitizing the credit and/or the credit instruments, in whole or in
part, to any concern whatsoever on such conditions as the Bank may deem fit, provided
that the Company’s rights and obligations pursuant to the credit instruments shall
not be modified and shall remain fully valid.

	 	8. 	The
Company and/or Ampal American shall not adopt resolutions as to voluntary
               liquidation, corporate restructuring, merger and/or any resolution as to
               compromise or arrangement within the meaning thereof in the Companies Law
               5759-1999 or any other law that may be promulgated in addition thereto
and/or in                lieu thereof and/or any application for a stay of proceedings
order under the                Companies Law 5759-1999 or any other law that may be
promulgated in addition                thereto and/or in lieu thereof.

	 	
The
import of this clause relates both in                respect of merger in accordance with
Part Eight or Part Nine of the Companies                Law and in respect of any other
merger in accordance with which the bulk of the                Company’s assets are
acquired by another corporation or whereby shares of                the Company are
acquired being such as to confer on the acquiring party control                in the
Company or whereby the Company directly or indirectly acquires the bulk                of
the assets of another corporation or shares of another corporation conferring
               on it control of such corporation.  

	 	9.	Repayment
of the credit and the calling thereof for immediate repayment

	 	9.1  	It
is hereby agreed that, inter alia, the instances in which the Bank shall have cause to
bring forward the repayment date of the credit and call it for immediate repayment
(including realization of the security and the guarantees, and setoff of the proceeds of
the realization on account of the secured debts) all as set forth in the credit
instruments and, in addition thereto, every one of the following instances, which, in the
opinion of the Bank, are injurious to the Company’s solvency:  

	 	9.1.1 	If
the Company fails to pay the Bank any amount whatsoever being due to the Bank from the
Company on account of the credit and/or the debts on the due date appointed for the
payment thereof.  

	 	9.1.2 	If
the Bank discovers that changes have been made in the instruments of incorporation of the
Company and/or Ampal American and/or Gadot, being such as to injure the Bank’s
rights, without the prior written consent of the Bank.  

12

	 	9.1.3 	If
there shall arise to any creditor of the Company and/or Ampal American and/or Gadot,
cause, in accordance with the instruments of contractual agreement between it and the
Company and/or of Gadot and/or of Ampal American, all according, for bringing forward the
repayment date of its debts, and/or calling its debts for immediate repayment and which,
in the opinion of the Bank, are injurious to its rights.  

	 	9.1.4 	If
there exists any material breach of the conditions of this document and/or the conditions
of the credit instruments  

	 	9.1.5 	If
any event shall have occurred or if circumstances prevail and/or if any situations come
into effect which, in the opinion of the Bank, may materially injure the value of Gadot
and/or of the Company and/or of Ampal American.  

	 	9.1.6 	If,
in the opinion of the Bank, any material deterioration shall have occurred in the
economic position and/or solvency of the Company and/or of Gadot and/or of Ampal
American.  

	 	9.1.7 	If
there shall have arisen any situations and/or conditions and/or circumstances in which,
in the opinion of the Bank, there is no reasonable prospect that the Company will pay its
debt to the Bank and/or if, in the opinion of the Bank, there are reasonable grounds to
fear that the debt of the Company will not be paid in the amounts and instalments and at
the times stipulated in the credit instruments and/or that the Company is not fulfilling
and/or will be unable to fulfil its covenants vis-à-vis the Bank on due date
thereof as per this document and/or as per the credit instruments and/or the security and
the bonds.  

	 	9.1.8 	If
the Company and/or Ampal American shall be in breach of any of their material covenants
pursuant to this document and/or if it should transpire that any of their warranties is
untrue.  

	 	9.1.9 	If
there should be a suspension of trading of 21 consecutive days in the shares of Gadot or
if the shares of Gadot are de-listed from Tel-Aviv Stock Exchange trading.  

	 	9.1.10 	If
there shall been filed against the Company and/or against Gadot and/or against Ampal
American an application for a stay of proceedings order pursuant to Section 350 of the
Companies Law 5759 -1999 or under any additional and/or other law that may replace it and
such applications are not withdrawn within 30 days and in the opinion of the Bank that
fact is such as to impair or to endanger the value of the security given to the Bank.  

	 	9.1.11 	If
there shall form part of the agenda of the general meeting and/or of the meeting of the
Board of Directors of the Company and/or of Gadot and/or of Ampal American a draft
resolution concerning the following matters: a resolution pursuant to Sections 350 and/or
351 of the Companies Law 5759-1999 and a resolution on voluntary liquidation or a
resolution on merger and/or corporate restructuring  

13

	 	9.1.12 	If,
at the sole determination of the Bank, a change shall have occurred in the control over
the Company and/or Gadot and/or Ampal American or in their equity or structure as against
the status quo as of the date of this document, whether by means of voluntary transfer of
shares or otherwise, whether as recipient company or as transferring company, or as
splitting company, and/or if the name of Gadot is stricken out of the statutorily kept
register and/or if it should transpire that it is about to be stricken out.  

	 	9.2 	In
any one of the instances detailed in sub-paragraph 9.1 above, depending on the
circumstances of each and every case, the Company shall be served notice allowing the
Company a curative period of 30 days, provided that payments are not in arrears of more
than 7 days, but notwithstanding the aforesaid in this Clause, and/or any matter
stipulated in sub-paragraph 9.1 above, with all the sub-paragraphs thereof, in
circumstances of especial urgency, in which damage is liable to be occasioned to the Bank
and/or the rights of the Bank as creditor are liable to be injured as a result of any
waiting period and/or extension as aforesaid – then the Bank shall be entitled to
act and to exercise its rights immediately and without any delay and/or postponement or
waiting period whatsoever. 

	 	9.3 	Prepayment
– 

	 	
The
Company shall be entitled to prepay the credit or any portion thereof subject to the
following cumulative conditions: 

	 	9.3.1 	The
prepayment shall be made solely on the interest payment dates as set forth in the loan
provision instruments executed or that shall be executed by the Company.  

	 	9.3.2 	There
shall be served on the Bank in respect thereof 30 business days’ written notice
prior to the anticipated repayment date. Notice of prepayment shall be deemed irrevocable
in respect of the entire amount specified therein and such notice shall be deemed to be
an irrevocable order on the part of the Company to debit its account at the Bank with the
prepayment amount  

	 	9.3.3 	Any
amount of Loan II that is prepaid shall not be provided again.  

	 	9.3.4 	In
the event that only a part of the principal of the loan is prepaid, then the balance
shall continue to be repaid in the original amounts stipulated in the loan instruments;
and the repayment period shall be shortened accordingly.  

	 	9.3.4.1 	On
the prepayment date, the Company shall pay the Bank the principal of the prepayment
amount together with the interest in respect thereof and commissions as generally
accepted in the Bank in respect of prepayment, to the aforesaid date.  

14

	 	9.3.5 	Without
derogating from sub-paragraph 9.3.4 aforesaid, the Company shall be exempt from
prepayment commission fine:  

	 	9.3.5.1 	If
they are implemented on the interest payment dates and the source of the repayment is
cash flow surpluses in the Company or dividends being due to the Company from Gadot  

	 	9.3.5.2 	If
the prepayment is made on interest payment dates but the source thereof is not cash flow
surpluses or dividend, then a flat commission of 1% shall be collected on the amount
paid.  

	 	10. 	Reports
– 

	 	10.1 	The
Company shall deliver the Company’s financial statements to the Bank by and not
later than 120 (a hundred and twenty) days from the end of each calendar year. If the
Company publishes additional consolidated or other financial statements in Israel or
elsewhere, either audited or unaudited, the Company shall deliver to the Bank copies
thereof as soon as possible after publication thereof, excepting in case of an annual
report, which shall be forwarded within 120 days.  

	 	10.2 	The
Company shall deliver to the Bank the financial statements of Gadot not later than 60
(sixty) days as of the end of any calendar quarter and/or calendar year, all according.
If Gadot publishes additional consolidated or other financial statements in Israel or
elsewhere, either audited or unaudited, the Company shall deliver copies thereof to the
Bank as soon as possible following publication thereof, except in case of an annual
report which shall be forwarded within 90 days.  

	 	
Gadot
shall include in a note to its annual financial statements for the year ended December
31, 2007, the balance sheet data as of December 31, 2007 and the income statement data
for the year ended December 31, 2007, after there shall have been applied in respect
thereof the principles of recognition, measurement and presentation as per IFRS
standards.  

	 	10.3 	The
Company shall deliver to the Bank the financial statements of Ampal American by and not
later than 60 (sixty) days as of the end of each calendar quarter and/or each calendar
year, all according. If Gadot publishes additional consolidated or other financial
statements in Israel or elsewhere, either audited or unaudited, the Company shall deliver
copies thereof to the Bank as soon as possible following publication thereof, except in
case of an annual report which shall be forwarded within 90 days.  

15

	 	10.4 	In
addition the Company shall issue to the Bank, by and not later than 60 days as from the
end of each quarter, a calculation of all the data in connection with the financial
stipulations set forth in this document with confirmation and under hand of the Company’s
General Manager or the Company’s VP Finance.  

	 	10.5 	In
addition to and without derogating from all of the aforesaid, we shall deliver to you
from time to time, at your demand, additional information on the business data and the
financial position of the Company and all in written reports in such reporting format and
in accordance with such details as you shall require – and all within 15 days of
date of any reporting requirement on your part.  

	 	11. 	General
– 

	 	11.1 	This
document shall constitute and shall always form an integral part of any of the forms, the
instruments, the security and the guarantees, the letters of conditions and so forth as
are and/or shall be present in the Bank from time to time and at all times under our hand
and/or under hand of others on our behalf and as may be valid at any time in such a way
that they are to be read in conjunction, in a single continuum, and en bloc, as part of
the conditions thereof, as complementing one another and as adding to one another.  

	 	11.2 	Any
material breach and/or non-fulfilment of all and/or any portion of the import and
stipulations of this document, shall constitute and shall be deemed also be a breach of
the credit instruments and an additional default cause that that shall confer on the Bank
the right to call the credit and the debts for immediate repayment, with all that is
thereby implied, as a result, and the Company covenants to pay them to the Bank under
such circumstances at the Bank’s first demand.  

	 	11.3 	A
waiver by the Bank to the Company in respect of non fulfilment of one of more of the
Company’s covenants towards the Bank, either included or that will be included in
future in any other instrument, shall not be deemed justification or excuse for any
breach or any further non-fulfilment of any of the conditions or stipulations aforesaid.;
and the Bank’s refraining from the use of any right whatsoever vesting in it
pursuant to this document and/or any other instrument and/or under any law, shall not be
construed as a waiver of such right.  

16

	 	11.4 	The
Company and/or Ampal American warrant and covenant toward the Bank that it has duly
adopted all resolutions and obtained all approvals statutorily necessary and as per its
instruments of incorporation for its contractual engagement pursuant to this document and
the implementation of all of its covenants in accordance herewith and also that it does
not require any 3rd  party consent or approval for contracting pursuant to
this document and for fulfilling all of its covenants detailed herein; in addition, the
Company and/or Ampal American warrant and covenant toward the Bank that there exists no
prohibition and/or impediment and/or limitation whatsoever, either statutorily or
pursuant to any agreement, against the Company and/or Ampal American executing this
document and the implementation hereof by it does not constitute a breach of and/or
injury to any 3rd party right, including under any law and/or agreement and/or
any other covenants toward any 3rd party.  

	 	11.5 	Our
above-mentioned covenants are non contingent, unconditional, absolute and irrevocable and
we shall not be entitled to annul or modify them, without obtaining your prior written
consent, since we are aware that you rely on them in providing the credit.  

	 	11.6 	There
shall be applicable to this document and to every one of the credit instruments and also
the security and the guarantees and all the various other instruments executed by and/or
on behalf of the Company solely the laws of the State of Israel, and shall be from time
to time.  

	 	11.7 	The
sole and exclusive venue for the purposes of this document shall be the competent law
courts in the city of Tel-Aviv – Jaffa, Israel.  

	 	11.8 	The
appendices to this document constitute an integral part hereof. 

	 	
In
witness whereof we have set our hand  

			——————————————

Merhav Ampal Energy Ltd

	 	
We
consent to the foregoing and shall act accordingly  

	 	
Date:
December 3, 2007  

			——————————————

Israel Discount Bank Ltd

17

	Messrs
                                                                
Israel Discount Bank Ltd
                                                                
Tel-Aviv
                                                                
(Hereafter: - "the Bank")		

Date: December 3, 2007

Dear Sirs, 

We, the undersigned, Ampal American
Israel Corporation (hereafter: “Ampal American”) do hereby confirm to the Bank
our assent to the entire import of the foregoing instrument under hand of Merhav Ampal
Energy Ltd Company No. 51-375407-7, constituting an integral part of this document
and which are to be read in conjunction, and as a single continuum (hereafter:
“Merhav Ampal covenant”) and we hereby irrevocably warrant and covenant toward
the Bank that we shall act in accordance and shall not do anything being by way of a
breach of the import of the Merhav Ampal covenant and/or that does not conform to the
import thereof and likewise we shall cause Merhav Ampal to act in accordance with the
Merhav Ampal covenant aforesaid, and hereby covenant, absolutely and irrevocably toward
the Bank, to cause the entire import of the Merhav Ampal covenant aforesaid to be
fulfilled and implemented by Merhav Ampal and/or by us to the extent that this is related
to and/or dependent on us as owners, and also to the full and complete satisfaction of the
Bank. 

In addition, and without derogating
from the generality of the aforesaid, I hereby further emphasise my irrevocable covenant
toward the Bank as follows (as stated and as defined in the aforesaid Merhav Ampal
covenant): 

	 	(1) 	The
shareholders’ equity of Ampal American as detailed in the solo
               financial report of Ampal American shall be not less than the higher of
the sum                of 200 million dollars or a rate of 35% of the total balance sheet
.. 

	 	(2) 	The
ownership structure of all the means of control and the control over Ampal
               American as set forth in the Merhav Ampal covenant aforesaid shall always
be                maintained and exist, such that, subject to this condition, there shall
not be                mortgaged, shall not be attached, such not be sold, shall not be
assigned and                shall not be transferred and shall not be diluted the shares
and/or the holdings                and/or the rights of Yossi Maiman in Ampal American in
such a way that there                shall always be preserved and shall continue to
exist the control of Yossi                Maiman in Ampal American at a rate that shall
be not less than 40%. 

	 	(3) 	Ampal
American shall not pay and shall not implement any distribution (within
               the definition thereof in the Companies Law) and shall not covenant to pay
in                any shape or form whatsoever, either directly or indirectly, any
amounts                whatsoever out of its earnings or its capital or out of any other
source                whatsoever, including dividends distribution (within the definition
thereof in                the Companies Law) or interest or management fees or
compensation or                indemnification or consultancy fees, or sums of money or
cash equivalents in any                shape or form whatsoever to parties at interest
and/or to its shareholders                and/or to its controlling shareholders and/or
to companies and/or corporations                any of whose shareholders is a party at
interest therein and/or to any third                party whatsoever that may replace or
stand in lieu of any of the above. If no                instance of breach toward the
Bank shall have occurred, then the Company will be                permitted to pay the
controlling shareholder management fees or compensation or                indemnification
or consultancy fees or remuneration, provided that the payment                of such
moneys does not cause a breach of its covenants towards the Bank either                at
the time of drawdown or throughout the entire credit term. 

18

	 	(4) 	Ampal
American covenants not to acquire, not to provide financing for the
               acquisition of and not to covenant to acquire or to provide financing for
the                acquisition of, shares of Ampal American, in any shape or form
whatsoever                including and without derogating from the generality of the
aforesaid , by the                giving of a guarantee, either directly or indirectly,
to the Company or to a                subsidiary of the Company or to another corporation
under their control, without                obtaining the Bank’s prior written
consent. 

	 	
Our
above-mentioned covenants shall be binding upon us as long as Merhav Ampal remains owing
you any amount of money whatsoever.  

	 	
In
witness whereof we have set our hand  

		——————————————

Ampal American Israel Corporation

		         Messrs
 
        Israel Discount Bank Ltd
     
    Tel-Aviv
         
(Hereafter: “the Bank”)
		Date: December 3, 2007

	 	
Dear
Sirs,  

	 	
I,
the undersigned, Yosef Maiman, (Id. No 012770533) do hereby warrant and covenant towards
the Bank that as long as Merhav Ampal Energy Ltd Company No. 51-375407-7 owes you any
amount of money whatsoever pursuant to the irrevocable letter of undertaking executed by
Merhav Ampal Energy Ltd as of December 3, 2007, I shall directly or indirectly hold at
least 40% of the issued and paid up capital of Ampal American Israel Corporation and
these holdings shall be the highest rate of holding, directly or indirectly, of all the
shareholders of Ampal American Israel Corporation.  

	 	
In
witness whereof I have set my hand  

		Yossi Maiman 

——————————————

19

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