Document:

EXHIBIT 10.34
                                    INDENTURE

              Made and executed on the 6th of August 2001, in Azor

WHEREAS THE UNDERSIGNED, ITURAN LOCATION AND CONTROL LTD. PRIVATE COMPANY NO.
52-004381-1 (HEREINAFTER - THE "PLEDGOR")

Has received and/or will be receiving, from time to time, from Bank Hapoalim Ltd
(hereinafter - the Bank), credit, documentary credit, various loans, overdrafts
in a liquid account, in a current account or in another account, letters of
indemnification and guarantees for the Pledgor or for others at the Pledgor's
request, clearance of documents, granting of extensions and various banking
easements and various other banking services (hereinafter, together and
separately- Banking Services) under conditions that have been and/or will be
agreed upon from time to time regarding each above-mentioned Banking Service;

WHEREAS ITURAN TECHNOLOGIES LTD., PRIVATE COMPANY NUMBER 51-281110-0
(HEREINAFTER: - THE GUARANTEED PARTY)

Has received and/or will receive, from time to time, from the Bank, Banking
Services with the Pledgor's guarantee; or may owe the Bank various amounts of
money in any manner whatsoever other than in connection with the provision of
the Banking Services;

It is therefore agreed that the Pledgor will insure the payment of the various
amounts of money that the Pledgor and/or the Guaranteed Party owe and/or will
owe to the Bank in connection with the provision of the Banking Services and/or
in connection with other debts which are not Banking Services and/or otherwise,
all in accordance with the following conditions:

NATURE OF THE INDENTURE

     1.   This Indenture is given to guarantee the full and exact payment of all
          of the amounts owed or which will be owed to the Bank by the Pledgor
          and/or by the Guaranteed Party in connection with the provision of the
          Banking Services to the Pledgor and/or to the Guaranteed Party and/or
          in connection with other obligations that are not Banking Services or
          in any other manner, whether they are owed by the Pledgor and/or by
          the Guaranteed Party alone and/or together with others, whether the
          Pledgor and/or the Guaranteed Party has undertaken such obligations
          and/or will undertake them in the future, either as a debtor and/or as
          a guarantor and/or as an endorser and/or otherwise, which are owed
          and/or which will be owed in the future, which are due to be paid
          prior to the realization of

          the securities to which this Indenture applies and/or afterward, which
          are owed definitively and/or conditionally, directly and/or
          indirectly: without any limitation as to amount, and along with all of
          the expenses and other payments that are owed or will be owed to the
          Bank by the Pledgor pursuant to and in connection with this Indenture
          (including as described in Sections 7 and 23 below). (All of the
          above-mentioned amounts, together and separately, will be referred to
          hereinafter as the "Secured Amounts").

PLEDGE AND FIXED LIEN

     2.   As security for the full and exact discharge of all of the Secured
          Amounts, the Pledgor hereby pledges in favor of the Bank and its
          replacements, through a fixed first degree lien and pledge, all of the
          assets and the income from the assets and their proceeds, as set out
          in the list attached hereto and marked "A" and which constitutes an
          integral part of this Indenture (hereinafter, together and separately:
          "the Pledged Assets").

     3.   The Pledged Assets will be referred to hereinafter as - "Pledged
          Property."

          The pledge and the lien that are created pursuant to this Indenture
          will apply to any right to compensation or indemnification which the
          Pledgor may have due to a loss of the Pledged Property, or due to its
          having been damaged or expropriated.

THE PLEDGOR'S DECLARATIONS

     4.   The Pledgor hereby declares as follows:

          a.   That the Pledged Property is neither pledged, under a lien nor
               attached in favor of others.

          b.   That the entirety of the Pledged Property is owned and held by
               the Pledgor exclusively or is held and/or controlled by the Bank;

          c.   That there is no limitation or condition by law or agreement that
               applies to the transfer of the Pledged Property or to its being
               pledged;

          d.   That the Pledgor is permitted to pledge the Pledged Property;

          e.   That no assignment of rights or any other activity that derogates
               from the value of the Pledged Property has taken place.

THE PLEDGOR'S UNDERTAKINGS

     5.   The Pledgor hereby undertakes as follows:

                                       2

          a.   To maintain the Pledged Property in accordance with the Bank's
               instructions only;

          b.   To use and to treat the Pledged Property with great care and to
               notify the Bank of any flaw or defect that occurs in it, and to
               repair any flaw or defect in the Pledged Property for any reason
               whatsoever, and to be responsible to the Bank for any incident of
               such a flaw or defect;

          c.   Not to sell, transfer, lease, rent or deliver the Pledged
               Property or any part thereof, not to allow another to use it in
               any manner whatsoever and not to allow another to take any of the
               above-mentioned actions, without the Bank having given its
               advance written consent for such;

          d.   To notify the Bank of any incident in which a lien is placed on
               the Pledged Property, to notify the attaching party immediately
               of the lien in favor of the Bank and to immediately, at its own
               expense and without delay, take any measure needed in order to
               remove the lien;

          e.   Not to pledge or place a lien on the Pledged Property in any form
               or manner with rights that are equal, senior or junior to those
               of the Bank, and not to assign any right whatsoever that the
               Pledgor has in the Pledged Property without obtaining the Bank's
               advance written consent;

          f.   To be responsible to the Bank for any flaw in the Pledgor's
               property right in the Pledged Property;

          g.   To pay, in a timely fashion and in accordance with any relevant
               law, all of the taxes and obligatory payments imposed on the
               Pledged Property and/or on income derived from it, and to produce
               to the Bank, at its request, all receipts for said payments. If
               the Pledgor does not make such payments in a timely fashion, the
               Bank may pay them at the Pledgor's expense and charge the Pledgor
               with their payment along with expenses and interest at the
               maximum rate. Such payments will be secured by this Indenture;

          h.   That no structural change will take place with regard to the
               Pledgor and no change whatsoever will take place in the
               controlling interests in the Pledgor without the Bank's advance
               written consent;

          i.   That it will not initiate any proceedings for the Secured Amounts
               that could impact upon the Bank's ability to realize this
               Indenture.

     6.   The Pledgor hereby undertakes to notify the Bank immediately:

          a.   Of any incident of a claim of any right whatsoever against a
               security given in favor of the Bank to which this Indenture
               applies, and/or of any execution of judgment proceedings or other
               realization measures regarding such a security;

          b.   Of any of the acts mentioned in Section 10 below;

          c.   Of a reduction of the value of any security whatsoever which the
               Pledgor has given and/or which it will give;

                                       3

          d.   Of any petition that is brought to liquidate the Pledgor's
               business or to have it be placed in receivership, and of any
               decision regarding a change in the Pledgor's structure or of any
               intention whatsoever of making such a change;

          e.   Of a change in address.

     INTEREST

     7.

          a.   The Bank may calculate interest on the Secured Amounts at the
               rate which is agreed and/or which will be agreed from time to
               time between the Bank and the Pledgor and/or the Guaranteed
               Party. In situations in which there is no agreement regarding the
               rate of interest, the Bank may fix the interest at a rate that
               will not exceed the maximum interest rate and notify the Pledgor
               and/or the Guaranteed Party of such. The Pledgor and/or the
               Guaranteed Party will be charged in accordance with such interest
               rate, and the Bank may add the interest amounts to the principal
               at the end of each month or at the end of any other period, as
               the Bank may determine.

          b.   In any event in which there is a delay in the payment of the
               Secured Amounts or of part of them, the Secured Amounts will bear
               arrears interest at the rate that has been agreed in the
               agreement for the provision of the Banking Services. If there is
               no determination regarding the arrears interest, the Secured
               Amounts will bear interest at the maximum rate.

          c.   In any event in which the Bank is granted the right to realize
               the securities given pursuant to this Indenture, the Bank may
               increase the interest rates on the Secured Amounts for a period
               beginning with the occurrence of such event and concluding on the
               date of the actual payment by the Pledgor, up to the maximum
               interest rate.

     TIMES FOR PAYMENT

     8.   The Pledgor hereby undertakes to pay to the Banks all of the Secured
          Amounts and any part of them, precisely and at the times for payment
          established and which will be established from time to time.

     9.

          a.   The Bank may refuse to accept an early payment of the Secured
               Amounts or any part of them before the time for their payment,
               and the Pledgor may not redeem the Pledged Property or a part
               thereof through the payment of the Secured Amounts and/or of any
               part of them unless otherwise agreed by the Pledgor and the Bank
               in the agreement for the provision of the Banking Services.

                                       4

               Neither the Pledgor and/or the Guaranteed Party or anyone whose
               rights may be impacted upon by the giving of this Indenture will
               have any right pursuant to Section 13(B) of the Pledge Law,
               5727-1967 or to the provision of any law which replaces it.

          b.   Subject to the provisions of any relevant law, if the Bank agrees
               to an early payment against the account of the Secured Amounts
               (without it being obligated to do such), the Pledgor will pay the
               fee for early payment as shall be agreed by the Pledgor and the
               Bank.

     10.  Without derogating from the generality of the provisions of this
          Indenture, the Bank may, in any of the events listed below, make the
          Secured Amounts immediately payable and charge any of the Pledgor's
          accounts at the Bank with the above-mentioned amount, and the Pledgor
          undertakes to pay all of the Secured Amounts and the Bank may take any
          measures it sees fit to collect the Secured Amounts and to realize the
          securities in any manner legally permissible, at the Pledgor's
          expense:

          a.   If the Pledgor breaches or does not fulfill any condition
               whatsoever of this Indenture, of if the Pledgor and/or the
               Guaranteed Party breaches any other undertakings given by the
               Pledgor and/or the Guaranteed Party to the Bank and/or which they
               will give to the Bank and such non-fulfillment and/or breach is
               not repaired by the Pledgor within 14 days from the date of the
               receipt of notice of such from the Bank, and/or if it turns out
               that any of the declarations made by the Pledgor in this
               Indenture and/or any other declaration made and/or which will be
               made to the Bank by the Pledgor in connection with the Secured
               Amounts is incorrect or inexact;

          b.   If the Pledgor and/or the Guaranteed Party make a decision
               regarding a change in the Pledgor's structure and/or that of the
               Guaranteed Party or regarding any intention making such a change,
               whether the Pledgor and/or Guaranteed Party will be an absorbing
               company or a transferring company or as a company that is being
               split, or of decisions regarding voluntary liquidation or if an
               order of liquidation has been issued against it or if a temporary
               liquidator or special manager is appointed for either of them or
               if the name of the Pledgor and/or the Guaranteed Party is deleted
               from any register whatsoever which is maintained by law or if it
               is to be erased, and the decision, order or erasure set out above
               has not been cancelled within thirty days;

          c.   If an asset receiver is appointed or an order of receivership is
               issued with respect to the property of the Pledgor and/or of the
               Guaranteed Party or with respect to part of it, and such
               appointment or order is not cancelled within sixty days;

          d.   If an attachment is imposed or any similar execution of judgment
               measure is taken against part of the property of the Pledgor
               and/or the Guaranteed Party, for an amount in excess of NIS
               200,000, and/or against any of the securities given or which will
               be given by the Pledgor and/or the Guaranteed Party;

                                       5

          e.   If it appears to the Bank, at its sole discretion, that there has
               been a change in control of the Pledgor and/or of the Guaranteed
               Party as opposed to the situation existing at the time of the
               signing of this Indenture;

          f.   If either the Pledgor and/or the Guaranteed Party have stopped
               paying off its debts and/or conducting its business;

          g.   If work and/or a significant part thereof has ceased at the
               Pledgor and/or at the Guaranteed Party for a period of two months
               or more;

          h.   If any event has taken place which could affect the Pledgor's
               and/or the Guaranteed Party's financial ability;

          i.   If the Pledgor and/or the Guaranteed Party has delayed the making
               of any payment whatsoever of the Secured Amounts by more than 14
               days;

          j.   Cancelled

          k.   If, at the Bank's discretion and in its sole estimation, there
               has been a deterioration in the values of the Pledged Assets, or
               in the Pledgor's and/or the Guaranteed Party's ability to pay.

          l.   In the event of the liquidation of the Pledgor and/or of the
               Guaranteed Party.

          m.   If the Pledgor and/or the Guaranteed Party is asked to make early
               payment of debts which the Pledgor and/or the Guaranteed Party
               owes and/or will owe to other creditors, in amounts exceeding NIS
               200,000.

THE BANK'S RIGHTS

     11.

          a.   The Bank has the right of possession, retention, offset and lien
               on all amounts, properties and rights - including securities,
               coins, gold, banknotes, documents for merchandise, insurance
               policies, notes, assignments of debts, deposits, securities and
               the consideration therefore, which are held or controlled by the
               Bank at any time, in favor of the Pledgor or on its behalf,
               including those which have been delivered for collection,
               security, custodianship or in another manner. The Bank may retain
               the above-mentioned assets until the full discharge of the
               Secured Amounts, or sell them and use all or part of the
               consideration to discharge the Secured Amounts. In the event that
               the amounts to be set-off were deposited in a currency other than
               that in which the Secured Amounts are determined, the Pledgor
               hereby gives the Bank advance instructions to sell the balance of
               the right in the other currency at a rate to be determined by the
               Bank or which the Bank can obtain for it at that time, and to
               credit the consideration from the sale, after deducting the
               obligatory expenses and fees, against the Secured Amounts.

                                       6

          b.   Without derogating from the Bank's right of retention as
               described in Section 11a above, the Bank may (but is not
               required) at any time:

               1.   Offset any of the Secured Amounts owed by the Pledgor
                    against amounts owed to the Pledgor by the Bank in any
                    account, either in Israeli or foreign currency, in any
                    manner or on any grounds whatsoever, even before the time
                    for the payment of the amounts owed by the Pledgor to the
                    Bank as stated, against which the offset will be carried
                    out, but in an offset carried out against deposits in a
                    savings plan, such deposits may not be offset prior to the
                    date on which the Pledgor is permitted to request early
                    payment of the deposits.

               2.   Purchase, for the Pledgor's account, any amount in foreign
                    currency that is required for the discharge of any of the
                    Secured Amounts or sell any foreign currency whatsoever
                    which the Bank holds in favor of the Pledgor and use the
                    consideration from the sale for the discharge of any of the
                    Secured Amounts.

               3.   To charge any account of the Pledgor's with any amount
                    whatsoever of the Secured Amounts. However, if the status of
                    any such account does not allow it to be charged by the Bank
                    for the purpose of the final payment of any amount
                    whatsoever, the Bank is permitted to not charge such
                    account, and if it does so, it may cancel any such charge
                    and treat any amount the charging of which was cancelled as
                    an amount that was not paid against the account of the
                    Secured Amounts, and may accordingly carry out any action
                    which it sees fit, pursuant to this Indenture.

               4.   In any event, the Bank may carry out an offset without any
                    prior notice. However, in the following cases, the Bank may
                    carry out an offset with prior notice that shall be given to
                    the Pledgor 10 (ten) days prior to the date on which the
                    set-off is carried out:

                    a.   If an offset is against amounts the payment of which is
                         not yet due.

                    b.   In the event of an offset against a regular fixed
                         deposit which, were it not for the offset, would have
                         been extended or renewed automatically, such that
                         rights or benefits would have derived to the Pledgor
                         therefrom.

                    c.   Notwithstanding the provisions of Section (4) above, if
                         the delay in carrying out the offset could damage the
                         Bank's situation or any of its rights whatsoever, the
                         offset will be carried out immediately.

          c.   The Pledgor hereby declares that it is aware that when the Bank
               uses its right of offset as described above prior to the payment
               due date of all or part of any of the Pledgor's deposits, the
               Pledgor's rights regarding or in connection with such deposit may
               be reduced (such as with regard to interest rates, linkage
               increments, currency exchange increments, rights to grants or
               loans, an exemption or reduction in income tax and withholding
               from source - if, pursuant to the terms of such deposit, the
               Pledgor had been given such rights.) The Pledgor

                                       7

               will bear all costs and payments imposed at that time by the Bank
               for the purpose of executing such action.

          d.   Any purchase or sale as described in Section 11 b. 2 above will
               be carried out at the Bank's standard rate, out of the amounts in
               Israeli or foreign currency, whichever is relevant, that the Bank
               holds in favor of the Pledgor, or which it receives from the
               realization of any securities whatsoever that have been given or
               which will be given to the Bank by the Pledgor.

          The term "the Bank's standard rate" shall mean, with regard to any
          purchase of foreign currency for the Pledgor's account, the highest
          rate for transfers and checks that the Bank would at that time use for
          the sale to its customers of the relevant foreign currency, with the
          addition of the exchange fee and any tax, charge, obligatory payment
          or other payments, etc., and with regard to any sale of a foreign
          currency from the Pledgor's account, the lowest rate for transfers and
          checks that the Bank would at that time use for the purchase from its
          customers the relevant foreign currency in exchange for Israeli
          currency, after deduction of the exchange fee and any tax, charge,
          obligatory payment or other payments, etc.

     12.  The Bank may, at any time, charge any account of the Pledgor for any
          amount owed or which will be owed by the Pledgor in any manner
          whatsoever, and credit any amount which is received from the Pledgor
          or on its behalf to whichever account it sees fit, and transfer any
          amount which is available to the benefit of the Pledgor to any account
          which the Bank sees fit.

     13.  The Pledgor confirms that it will trust the Bank's records and its
          accounts, and that they will be considered to be accurate and will
          serve as prima facie evidence of all of the specifics therein -
          regarding, inter alia, the calculation of the Secured Amounts; the
          details of the notes, guarantees and other securities; and any other
          matter relating to this Indenture.

     14.  Without derogating from the other provisions of this Indenture, any
          waiver, extension, easement, estoppel, or refraining from the taking
          of action (hereinafter: "a waiver") which is done or given by the Bank
          regarding a non-fulfillment or a partial fulfillment or an improper
          fulfillment of any of the Pledgor's undertakings pursuant to this
          Indenture, will not be deemed to be a waiver on the part of the Bank
          of any right whatsoever, unless it is by agreement which is limited to
          the particular circumstance in which it is given.

                                       8

     15.

          a.   In each one of the incidents described in Section 10 above, the
               Bank may use any measures it sees fit in order to collect the
               Secured Amounts and to realize any of its rights pursuant to this
               Indenture, including the realization of the Pledged Property in
               whole or in part, and it may use the compensation received for
               such realization for the discharge of the Secured Amounts,
               without the Bank being obligated to first realize any guarantees
               or other securities, if the Bank has any such guarantees or other
               securities;

          b.   In the event that the Bank chooses to realize the Pledged
               Property, a notice given three days in advance regarding the
               steps which the Bank intends to take will be considered to be
               notice given within a reasonable time for the purpose of Article
               19(b) of the Pledge Law, 5727-1967, or for the purpose of the
               provisions of any law which replaces it;

          c.   The Bank may - as the representative of the Pledgor, and for the
               purpose of this section the Pledgor irrevocably appoints the Bank
               as its representative - sell the Pledged Property and any part
               thereof through an auction or other sale, either by itself or
               through others, for cash or installment payments or otherwise,
               for a price and terms that shall be determined at the Bank's
               absolute discretion, and the Bank may also - by itself or through
               the court or through the Execution of Judgment Office, realize
               the Pledged Property or any other property, including - inter
               alia - through the appointment of an asset receiver or a managing
               asset receiver on behalf of the Bank, whose powers shall include,
               inter alia, permission to:

                    1.   Take the Pledged Property or a part thereof into his
                         possession.

                    2.   Manage the Pledgor's business or take part in its
                         management, as he sees fit.

                    3.   Sell or agree to the sale of the Pledged Property in
                         whole or in part, or transfer it or agree to its
                         transfer in any other manner, pursuant to terms that it
                         sees fit.

                    4.   Make any other arrangement regarding the Pledged
                         Property or any part thereof, as it sees fit.

          d.   All income received by the Receiver or the Receiver and the
               Manager from the Pledged Property, as well as any remuneration
               received by the Bank and/or by the Receiver or the Receiver and
               the Manager from the sale of the Pledged Property, or any part
               thereof, shall be credited in the following order:

                    1.   For removal of all expenses that have been and shall be
                         incurred relating to the collection of the Secured

                                       9

                         Amounts, including the expenses of the Receiver or the
                         Receiver and the Manager and his fee in such amount as
                         shall be determined by the Bank or approved by the
                         Court or the Executor's Office.

                    2.   For removal of Secured Amounts that shall reach the
                         Bank pursuant to the conditions of linkage, interest,
                         damages, commissions and expenses that are or shall be
                         due to the Bank in accordance with this Indenture.

                    3.   For removal of the Secured Amounts Fund.

     Or in any other order of crediting as shall be determined by the Bank.

     16.  In the event that, at the time of selling the Pledged Property, the
          date of payment for any or all of the Secured Amounts shall not yet
          have arrived, or the Secured Amounts or any thereof shall reach the
          Bank only conditionally, the Bank shall be entitled to collect from
          the sale such amount as is sufficient to cover the Secured Amounts,
          and the amount collected and not yet credited for removal of the said
          amounts in Section 15.D. above shall be Pledged to the Bank to ensure
          the Secured Amounts and shall be held by the Bank pending their
          removal.

NATURE OF THE SECURITIES

     17.  The securities that have been and/or shall be given to the Bank in
          accordance with this Indenture have a permanent character and shall
          remain valid until such point as the Bank shall confirm in writing
          that this Indenture is invalid.

     18.  If other securities or guarantees have been or shall be given to the
          Bank for the repayment of the Secured Amounts, all securities and
          guarantees shall be mutually independent.

     19.  If the Bank compromises or grants an extension or relief to the
          Pledgor and/or the Guaranteed Party, amends any of the undertakings of
          the Mortgager and/or the Guaranteed Party regarding the Secured
          Amounts, or releases or waives other securities or guarantees - these
          shall not change the nature of the securities to which this Indenture
          applies, and all the securities and undertakings of the Pledgor to
          which this Indenture applies shall remain fully valid.

     20.  The Bank is entitled to deposit the securities that have been or shall
          be delivered in accordance with this Indenture, or part thereof, with
          a guardian who shall be chosen by the Bank at its discretion, at the
          Pledgor's expense, and to replace this guardian from time to time; the
          Bank shall further be entitled to register any or all of the
          above-mentioned securities with any empowered authority in accordance
          with any law and/or with any public registry.

                                       10

RIGHT OF TRANSFER

     21.  The Bank is entitled at any time, at its discretion, and after
          providing written notice thereof to the Pledgor, and without requiring
          the consent of the Pledgor, to transfer, in full or in part, this
          Indenture and the rights in accordance therewith, including the
          securities, to a company from the Bank's group, and any recipient of
          the transfer shall also be entitled to transfer the above-mentioned
          rights to a company as stated, without requiring additional consent
          from the Mortgager. The transfer may be effected by endorsement in the
          margins or on the face of this Indenture, or by any other means as the
          Bank or the recipient of the transfer shall see fit.

NOTICE OF RESERVATION

     22.  The Pledgor undertakes to inform the Bank in writing of any
          reservation or objection it may have, if any, relating to any account,
          summary of account, authorization or notification of any kind it shall
          receive from the Bank, including the receipt of information by means
          of the automated information station. If the Mortgager does not
          express its reservation or objection within 21 days from the date of
          dispatch of the above-mentioned account, summary of account,
          authorization or notification, the Bank shall be entitled to consider
          this tantamount to confirmation of the veracity thereof.

EXPENSES

     23.  All expenses in relation to this Indenture (as detailed in the Bank's
          tariffs, as these shall apply from time to time), including the
          commission for the preparation of documents on account of credit and
          securities, stamp duty and registration of documents, expenses for the
          realization of the securities and the execution of collection
          procedures (including the Bank's attorneys' fees), insurance,
          security, maintenance and repair of the Pledged Property - shall be
          paid by the Pledgor to the Bank in accordance with its first request
          (unless these were actually paid by the Guaranteed Party, in the event
          that this Indenture is made to secure the liability of the Guaranteed
          Party), with the addition of maximum-rate interest from the date of
          request through full removal. Pending the removal thereof, all
          above-mentioned expenses, with the addition of interest, are secured
          by this Indenture. The Bank shall be entitled to debit the Pledgor
          Mortgager for the above-mentioned expenses and the interest thereon.

INTERPRETATIONS

     24.  In this Indenture - (A) The singular includes the plural, and vice
          versa; (B) The masculine includes the feminine, and vice versa; (C)
          "The Bank" means Bank Hapoalim Ltd., and any of the Bank's branches as
          existing on the date of this Indenture and/or as shall open in any
          place in the future, its transferees and alternates, and those acting
          with the Bank's authority; (D) "Maximum-rate interest" means: interest
          in the maximum rate customary in the Bank at that time, and from time
          to time, regarding deviations and

                                       11

          arrears in debit accounts or in checking accounts, according to the
          higher of the two; (E) "Structural Change" means, regarding the
          Pledgor, merger or division (as these terms are defined in Section E2
          of the Income Tax Ordinance or any legal provision coming in place
          thereof), and the transfer of assets in return for stocks, all whether
          as in accordance with the above-mentioned Section E2 or otherwise; (F)
          The headings of the sections are intended to serve solely as
          reference, and are not to be used in interpreting this Indenture; (G)
          The preamble to this Indenture constitutes an integral part thereof.

NOTICES AND WARNINGS

     25.  Any notice sent by the Bank by mail to the Pledgor in a registered or
          ordinary letter in accordance with the address stated above, or in
          accordance with the address of the Pledgor's registered office, or in
          accordance with another address as the Pledgor shall inform the Bank
          in writing, shall be considered as a legal notice received by the
          Pledgor within 72 hours from the time of dispatch of the letter
          including the notice. A written declaration by the Bank shall serve as
          evidence of the time of dispatch of the notice. Any notice granted to
          the Pledgor by any other means shall be considered to have been
          received at the time of its issue or the time of its publication.

SUBSTANTIVE LAW AND PLACE OF JURISDICTION

     26.  a. This Indenture shall be interpreted in accordance with the laws of
             the State of Israel.

          b. The sole place of jurisdiction for the purpose of this Indenture is
             established as the relevant court in Tel Aviv - Jaffa.

WITNESSED BY THE PLEDGOR'S SIGNATURE:

      [Signature and Stamp]
--------------------------------
ITURAN LOCATION AND CONTROL LTD.

                                       12

                                  APPENDIX "A"

BANK HAPOALIM LTD.

LIST OF PLEDGED ASSETS

BY: Ituran Location and Control Ltd.

TO THE ORDER OF BANK HAPOALIM LTD.

-------------------------------------------------------------------------------
Serial No.   Description
-------------------------------------------------------------------------------
1.          1,237,800 ordinary shares bearing the nominal value of NIS 1 each
            of the company Tadiran Telemetrics Ltd. (Hereinafter: the "Company")
-------------------------------------------------------------------------------
2.          All dividends that shall be paid and/or payable in respect of or
            according to all of said shares at any time whatsoever, from the
            date this deed of pledge is signed and thereafter.
-------------------------------------------------------------------------------
3.          All shares and stock (including all dividends that shall be paid
            and/or payable thereof or thereby)(Hereinafter: the "Other Shares")
            and all rights and the monies and the property that shall accrue or
            be issued in respect of said shares and/or in respect of and/or
            according to them, as bonuses, benefits, preferential rights, or
            otherwise.
-------------------------------------------------------------------------------
4.          All rights in the Company and with regard to it, that the law and/or
            the memorandum and/or the articles of the Company vest and shall
            vest with the Pledgor, in lieu of and in respect of said Shares
            and/or the Other Shares.
-------------------------------------------------------------------------------

                                       13

                                                                    Date: 8/6/01
Dear Sir or Madam,

Bank Hapoalim Ltd.

We wish to inform you hereby, that at the meeting of the Board of Directors of
the company Ituran Location and Control Ltd. (Hereinafter: the "Company"), which
was held in AZOR on 8/6/01 it was resolved as follows:

     1.   That the Company shall sign a deed of pledge of shares, formulated as
          attached, to pledge 1,237,800 ordinary shares bearing the nominal
          value of NIS 1 each of the company Tadiran Telematics Ltd.
          (Hereinafter: the "Shares") in favor of Bank Hapoalim Ltd., this being
          to guarantee all the debts and obligations of the Company and/or of
          the company Tadiran Telematics Ltd., to Bank Hapoalim Ltd. in any
          manner whatsoever and without limit on the total sum thereof.

     2.   We are aware and we agree that the Shares shall be deposited at the
          company Poalim Trusteeship Services Ltd..

     3.   To empower the Messrs. IZZY SHARETZKY AND KAMAR ELI to sign said deed
          of pledge, as well as all other documents necessary in your opinion in
          order to carry out the aforementioned, in the name of the Company,

     4.   To notify Bank Hapoalim Ltd. of the aforementioned resolutions.

     We certify that the aforementioned resolutions have been adopted in
     accordance with the memorandum and the articles of the Company, and have
     been registered in the protocol register of the Company.

                                            Respectfully yours,

                                                   [signed]
                                        -------------------------------
                                        Chair of the Board of Directors

                                       14

     I, the undersigned, EYAL SHARETZKY, attorney of the aforementioned Company,
     do certify hereby, that the foregoing is a faithful copy of the original
     protocol, which was registered in the protocol register of the Company,
     that the meeting of the Board of Directors of the Company was duly convened
     and that the aforementioned resolutions were duly adopted, according to the
     articles of the Company. In addition, I do certify that the combination of
     signatures set out in the aforementioned resolution [sic. -trans.] shall
     bind the Company.

                                                EYAL SHARETZKY, ATTORNEY-AT-LAW
                                                [signature & stamp]
                                                -----------------------------
                                                Attorney

                                       15

                                A G R E E M E N T

                MADE AND EXECUTED IN TEL AVIV ON AUGUST 6TH, 2001

B E T W E E N:       ITURAN LOCATION AND CONTROL LTD.
                     (Hereinafter to be termed - the "PLEDGOR")
                                                                THE FIRST PARTY;

AND BETWEEN:         BANK HAPOALIM LTD.
                     (Hereinafter -  the "BANK")
                                                               THE SECOND PARTY;

AND BETWEEN:         POALIM TRUSTEESHIP SERVICES LTD.
                     (HEREINAFTER -  THE "TRUST COMPANY")
                                                                THE THIRD PARTY;

W H E R E A S:          The Pledgor has received and/or will receive credit
                        and/or loans and/or will guarantee the payment of the
                        debts of the company Ituran Location and Control Ltd.
                        (Hereinafter, jointly and/or severally: the "CREDIT");

A N D   W H E R E A S:  The Pledgor declares that it is the owner and possessor
                        of 1,237,600 ordinary shares, bearing the nominal value
                        of NIS 1 each of the company Tadiran Telemetrics Ltd.
                        (Hereinafter: the "COMPANY")( Hereinafter: the
                        "SHARES");

A N D   W H E R E A S:  In order to guarantee the Credit, the Pledgor has
                        pledged and/or will pledge the Shares by a fixed charge
                        without limitation by sum, to the Bank and has signed
                        and/or will sign any Indenture including all of the
                        schedules thereof (Hereinafter: the "INDENTURE");

A N D   W H E R E A S:  The Trust Company has agreed to accept the Shares into
                        its possession, and act on behalf of the Bank and the
                        Pledgor, as set out in this Agreement;

IT IS THEREFORE AGREED AND PROVIDED AS FOLLOWS:-

     1.   The Preamble to this Contract constitutes an inseparable part thereof.

     2.   With the assent of the Parties, the Pledgor hereby transfers the
          certificate of the Shares to the possession of the Trust Company and
          deposits it therein, as trustee for the purpose of protecting the
          rights of the Bank pursuant to the Indenture.

                                       16

     3.   The Shares and the benefits in respect of the Shares shall be
          available for the use, to the credit and to the order of the Bank.

          In this Agreement the term "BENEFITS" shall have the following
          meaning: All proceeds and rights stemming from the Shares, including
          the collection of dividends and of benefit shares or acquisition of
          new shares, should rights be allotted.

     4.   Should the Bank apply to the Trust Company and declare that the
          Pledgor had not met one or more of its obligations vis-a-vis the Bank,
          then either the Trust Company shall register the Shares [and the]
          Benefits to the Bank, in whole or in part, or to whoever the Bank
          shall request, or the Trust Company shall sell the Shares and the
          Benefits, in whole or in part, at a price and on reasonable terms
          according to the market at that time, and shall transfer the proceeds
          to the Bank in order to repay the Credit, all as the Bank shall order.
          The Trust Company shall be free of any responsibility to check the
          appropriateness of the request of the Bank.

     5.   So long as the Credit has not been repaid and/or so long as any debts
          or obligations of the Pledgor vis-a-vis the Bank, in respect of the
          Credit, remain, the Pledgor and the Trust Company shall not be
          entitled to change or to void the terms of this document unless the
          consent of the Bank shall be obtained thereof.

     6.   Once the Bank shall notify the Trust Company, in writing, that the
          Credit has been fully paid up, or that it has no interest in the
          Shares, the Trust Company shall be allowed to return the Shares to the
          Pledgor.

     7.   Subject to any confirmation given by the Bank to the Trust Company,
          monies, benefit shares or any other right that may reach the
          possession of the Trust Company as holder of the Shares, shall be
          transferred by it to the Bank, and shall be charged by it on account
          of paying off the interest on the Credit.

     8.   The Bank and the Trust Company shall not be held responsible in any
          manner or form vis-a-vis the Pledgor for any action or inaction of
          theirs or of either of them concerning the Shares and/or the rights
          stemming from and/or connected to them, and/or a change in the value
          therein for any reason whatsoever.

     9.   Any tax applicable to the Shares as well as fees and expenses that may
          result from the custody and care thereof, and the trusteeship fee of
          NIS 5,000 (FIVE THOUSAND New Israeli Shekels) per year or any part
          thereof (Hereinafter: the "Trust Company Fee") shall be paid by the
          Pledgor. The Trust Company Fee shall be linked to the Consumer Price
          Index. The linkage shall be calculated based on the Index published in
          the month 7/15/01.

                                       17

          The Trust Company Fee is an annual fee. The Trust Company Fee shall be
          paid by the Pledgor each year in advance. To avoid doubt, it is stated
          that the Trust Company Fee is separate from the costs of the Bank,
          should there be any, the Bank and/or the Trust Company shall be
          entitled to debit the account of the Pledgor and/or account 641/507860
          at the Bank to pay off the costs and the fees set out in this section
          above.

     10.  This Agreement shall neither derogate from, nor void, nor change the
          rights of the Bank pursuant to the documents and/or the other
          guarantees signed by the Pledgor and/or given by it in favor of the
          Bank, and these shall remain fully valid until final payment of all
          the Credit to the Bank.

     11.  Any notice that shall be sent by the Bank to the Pledgor by registered
          or regular mail according to the address specified in the preamble to
          this Agreement and/or any other address provided by the Pledgor or
          which shall be provided by it to the Bank in writing, shall be
          considered a lawful notice received by the Pledgor 48 hours after the
          time the letter containing said notice was sent.

                       IN WITNESS WHEREOF, we have signed:

       [SIGNATURE AND STAMP]
         ---------------------------------    ------------------------------
          ITURAN LOCATION AND CONTROL LTD.          BANK HAPOALIM LTD.

                     ---------------------------------------
                        POALIM TRUSTEESHIP SERVICES LTD.

I HEREBY GIVE AN IRREVOCABLE ORDER TO DEBIT MY ACCOUNT AT BANK HAPOALIM LTD.,
YITZHAK SADEH BRANCH, NO. 641/507860 IN RESPECT OF THE TAXES, THE FEES AND THE
EXPENSES SET OUT IN SECTION 9 ABOVE.

                                           [SIGNATURE AND STAMP]
                                      --------------------------------
                                      ITURAN LOCATION AND CONTROL LTD.

                                       18

                                                            Date
Dear Sir or Madam,

Bank Hapoalim Ltd.

    RE: 1,237,800 ORDINARY SHARES BEARING THE NOMINAL VALUE OF NIS 1 EACH OF
       THE COMPANY TADIRAN TELEMETRICS LTD., OWNED BY ITURAN LOCATION AND
                              CONTROL LTD. (ITURAN)

Acting as the attorney of the company Tadiran Telemetrics Ltd., and at your
request, I hereby certify the following to you:

     1.   The 1,237,800 shares under discussion are owned by Ituran, duly issued
          from capital duly registered, and their value has been paid up to the
          Company in full.

     2.   The pledged Shares and rights, have not been otherwise mortgaged,
          assigned, attached or pledged in any manner whatsoever to any third
          party whatsoever, they are owned by the Pledgor exclusively, whereas
          no third party whatsoever has any right whatsoever therein.

     3.   Subject to the articles of the Company, no limitation whatsoever under
          law applies to the transfer of the pledged Shares and rights.

                                            Respectfully yours,

                                               EYAL SHARETZKY, ATTORNEY-AT-LAW
                                                      [signature & stamp]
                                               --------------------------------
                                                           Attorney

                                       19

                                                              Date
Dear Sir or Madam,

Tadiran Telematics Ltd.

     1.   We wish to inform you that we have pledged and assigned by pledging
          all of the monies to which we are or may be entitled from you as a
          dividend, should you distribute dividends to your shareholders, to
          Bank Hapoalim Ltd., Branch 641, the address being NAHALAT YITZHAK ST.
          TEL AVIV (Hereinafter: "Bank Hapoalim"), according to the Assignment
          of Obligations Law, 5729 - 1969.

     2.   Accordingly, you must pay all of the aforementioned monies to Bank
          Hapoalim, and we hereby give you an irrevocable order to transfer all
          of the aforementioned monies to Bank Hapoalim alone.

     3.   Payment shall be carried out by crediting account number 507860 at the
          aforementioned branch, so long as Bank Hapoalim has not given you
          other instructions. In such a case you shall act according to the
          instructions of Bank Hapoalim.

                                               Respectfully yours,

                                               ITURAN LOCATION AND CONTROL LTD.
                                                     [signature & stamp]
                                               --------------------------------
                                               Ituran Location and Control Ltd.

Dear Sir or Madam,

Bank Hapoalim Ltd.
Branch
       -----------------------

We confirm receipt of the aforementioned notice and we shall act as instructed
therein.

                                                 Edi Kafry  [name & signature]
Date
     -------------                              -------------------------------
                                                     Tadiran Telematics Ltd.

                                       20

Ministry of Justice
Registrar of Companies
POB 28178
Jerusalem 91281
                       PARTICULARS OF MORTGAGES AND LIENS
             (Section 178 of the Companies Ordinance (New Version), 5743 - 1983)

--------------------------------------------------------------------------------
NAME OF THE BORROWER COMPANY            COMPANY NO.                     CODE
--------------------------------------------------------------------------------
ITURAN LOCATION AND CONTROL LTD.              SERIAL NO.  CONTROL       81
                                                          NUMERAL
--------------------------------------------------------------------------------
                                       52     004381      1
--------------------------------------------------------------------------------
THE GUARANTEED      THE GUARANTEED    CURRENCY     CURRENCY TYPE    DATE CREATED
SUM IN WORDS        SUM               CODE

NOT LIMITED BY      NIS  | AG.|
SUM
--------------------------------------------------------------------------------
CODE                             DESCRIPTION OF DOCUMENT        STAMP TAX
--------------------------------------------------------------------------------
                                 INDENTURE
--------------------------------------------------------------------------------
PARTICULARS OF CREDITORS

--------------------------------------------------------------------------------
IDENTITY NO.                     PARTICULARS OF CREDITOR        SUM OF LOAN
52-000011-8                      BANK HAPOALIM LTD.
--------------------------------------------------------------------------------
PARTICULARS OF THE PLEDGED ASSETS

1,237,800 ordinary shares bearing the nominal value of NIS 1 each of the company
Tadiran Telemetrics Ltd., including all rights of any type and sort whatsoever,
to which the Pledgor may be entitled in respect of these shares.

SPECIAL TERMS
--------------------------------------------------------------------------------
SHOULD A LIMITATION ON         YES        DATE OF RESOLUTION       DATE OF ISSUE
CREATING AN ADDITIONAL                                             OF SERIES
PLEDGE EXIST, SPECIFY "Y"
--------------------------------------------------------------------------------
ON REGISTERING A NOTE AS SPECIFIED IN REGULATION 12(B) OF THE COMPANIES
REGULATIONS (REPORTING, PARTICULARS OF REGISTRATION AND FORMS), 5760- 1999
                                       NO
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
NOTE REGARDING THE PROHIBITION OR LIMITATION ON CREATING OTHER PLEDGES AND
SPECIAL TERMS

THE PLEDGING COMPANY HAS UNDERTAKEN TO REFRAIN FROM TRANSFERRING
AND/OR PLEDGING THE PLEDGED PROPERTY AND ASSETS OR ANY PART THEREIN TO OTHERS
WITHOUT THE CONSENT OF THE PLEDGED PARTY.
--------------------------------------------------------------------------------

                                       21

I HEREBY DECLARE THAT THE DETAILS SET OUT IN THIS FORM ARE TRUE AND COMPLETE AND
THAT I AM AN OFFICE HOLDER OF THE COMPANY AS SPECIFIED IN SECTION 39 OF THE LAW.

Sharetzky Izzy        0749544       Chairperson of the Board  8/6/01   [signed]
                                              and CEO
----------------   ---------------  -------------------       ------   ---------
NAME OF SIGNATORY  IDENTITY NUMBER  POSITION AT COMPANY        DATE    SIGNATUREEXHIBIT 10.35
                                    INDENTURE

MADE AND EXECUTED ON THE          DAY OF THE MONTH OF                     , 2002

WHEREAS THE UNDERSIGNED, ITURAN LOCATION AND CONTROL LTD., 52-004381-1
(HEREINAFTER - THE PLEDGER)

Has received and/or is due to receive from time to time from Bank Hapoalim Ltd.
(hereinafter - the Bank) credit, documentary credit, various loans, overdrafts
in a current account, a debitory return account or another account, a letter of
indemnification and any guarantees for the Pledger or for others in accordance
with the Pledger's request, deduction of certificates, provision of extensions
and various banking leniencies and miscellaneous other banking services
(hereinafter, jointly and severally - Banking Services), on such conditions as
has been and/or shall be agreed from time to time regarding each above-mentioned
Banking Service;

THEREFORE, it is agreed that the Pledger shall insure the repayment of the
various amounts of money that the Pledger owes and/or shall owe to the Bank in
connection with the provision of the Banking Services, and/or in connection with
other debits that do not constitute Banking Services, and/or otherwise, all in
accordance with the following conditions:

SUBSTANCE OF THE INDENTURE

1.   This indenture is made to ensure full and precise payment of all amounts
     that are and shall be due to the Bank from the Pledger in connection with
     the provision of Banking Services to the Pledger by the Bank, and/or in
     connection with other charges that are not Banking Services, or otherwise,
     whether these are due from the Pledger alone and/or together with others,
     whether the Pledger has undertaken thereto and/or shall undertake thereto
     in the future, by way of a debtor and/or by way of a guarantor and/or by
     way of an endorser and/or otherwise, that are and/or shall be due in the
     future, due for payment prior to the realization of the securities to which
     this indenture applies and/or thereafter, due

     absolutely and/or conditionally, due directly and/or indirectly, WITHOUT
     RESTRICTION IN AMOUNT, with the addition of interest, commissions,
     miscellaneous expenses, including expenses for realization, attorneys fees,
     insurance fees, stamp duty and other payments in accordance with this
     Indenture, and with the addition of linkage increments of any type as are
     and shall be due from the Pledger to the Bank in any manner and way on
     account of linked capital and interest and on account of any other linked
     amount (all the above-mentioned amounts shall be referred to hereinafter
     jointly and severally as - the Guaranteed Sums).

THE LIEN

2.   By way of security for the full and precise settlement of the Guaranteed
     Sums, the Pledger hereby liens in favor of the Bank and its alternates, by
     way of a first degree floating lien, the assets and their proceeds (the
     Floating Lien Assets):

     A.   All assets, moneys, property and rights of any type, without
          exception, held by the Pledger now and that shall be held by him at
          any time in any manner and way;

     B.   All current assets, without exception, held by the Pledger now and
          that shall be held by him at any time, in any manner and way; current
          assets refer to all assets, moneys, property and rights of any type,
          excluding land, buildings and fixed equipment;

     C.   All fixed assets, without exception, held by the Pledger now and that
          shall be held by him at any time, in any manner and way; these assets
          include, inter alia, land, buildings and fixed equipment;

     D.   All securities and other documents owned by the Pledger and/or that
          the Pledger is entitled to order to be sold, which are held and that
          shall, from time to time, be held by the Bank and/or by others in the
          Bank's favor and/or the rights on account thereof;

     E.   All rights to land and/or all contractual rights in accordance with
          agreements between the Pledger and the Israel Lands Administration
          and/or the Israel Development Authority and/or the Jewish National
          Fund

     and/or others existent now and/or that shall be existent in the future at
     any time.

3.   By way of additional security for the full and precise settlement of all
     the Guaranteed Sums, the Pledger hereby liens in favor of the Bank and its
     alternates, byway of a first degree lien, its reputation as it is today and
     as it shall be at any time (together, jointly and severally - the Liened
     Assets).

4.   By way of additional security for the full and precise settlement of all
     the Guaranteed Sums, the Pledger hereby mortgages and liens in the Bank's
     favor all securities, documents and certificates of others which the
     Pledger has or shall, from time to time, deliver to the Bank, whether for
     collect, for deposit and/or otherwise (hereinafter - the Liened Documents),
     and, on their delivery, they are and shall be considered to be mortgaged
     and liened to the Bank by way of a fixed first degree mortgage and lien in
     accordance with the conditions of this Indenture, and the provisions
     thereof shall apply, mutatis mutandis, to their lien and mortgage. The Bank
     shall be exempt from taking any action regarding the Liened Documents and
     shall not be liable for any damage caused in connection therewith, and the
     Pledger undertakes to indemnify the Bank in any case in which the Bank is
     sued by others on account of such damage. The Pledger hereby waives in
     advance any claims of limitation relating to the Liened Documents.

5.   The Floating Lien Assets, the Mortgaged Assets and the Liened Documents
     shall hereinafter be referred to as the Liened Property.

The lien and mortgage created in accordance with this Indenture shall apply to
any right to compensation or indemnification enjoyed by the Pledger due to the
loss of the Liened Property, damage thereto or the expiry thereof.

PLEDGER'S DECLARATIONS

6.   The Pledger hereby declares as follows:

     A.   That the Liened Property are not liened, mortgaged or attached in
          favor of others, with the exception of liens as detailed in the
          extract of the Registry of Companies as attached, and excluding: (I) A
          floating first degree lien as

          stated in para. 2 above; (II) lien on moneys due and/or which shall be
          due to the Pledger from a bank clearinghouse; (III) a specific first
          degree lien on 95 ordinary shares with a nominal value of NIS 1 each
          (95%) in Ituran Cellular Communications Ltd., held by the Pledger and
          a subsidiary thereof, and all the rights accruing from these shares;
          (IV) a specific first degree loan on 70,862 ordinary shares with a
          nominal value of NIS 1 each of the Pledger held by Ituran Cellular
          Communications Ltd., which liens were recorded in favor of Bank Leumi
          LeIsrael Ltd.;

     B.   That the Liened Property in their entirety are in the ownership and
          exclusive possession of the Pledger and/or in the possession and/or
          control of the Bank;

     C.   That there is no restriction or condition or agreement applying to the
          transfer or lien of the Liened Property;

     D.   That it is entitled to lien the Liened Property;

     E.   That no endorsement of a right or any other action has been executed
          that derogates from the value of the Liened Property.

PLEDGER'S UNDERTAKINGS

7.   The Pledger hereby undertakes as follows:

     A.   To hold the Liened Property solely in accordance with the instructions
          of the Bank;

     B.   To use and attend to the Liened Property with exceptional caution, and
          to notify the Bank of any instance of ruin, damage, defect or fault
          occurring therein, and to repair any ruin, damage, defect or fault
          emerging in the Liened Property on account of use and/or for any other
          reason, and to be liable vis-a-vis the Bank for any cause of ruin,
          damage, defect and/or fault as above;

     C.   To enable the Bank's representative to audit and examine the state of
          the Liened Property in their place of location at any time;

     D.   Cancelled.

     E.   Cancelled.

     F.   Not to sell, transfer, let, rent or deliver the Liened Assets and the
          Liened Documents, or any part thereof, not to permit another to use
          them in any manner and not to permit another to perform any of the
          above-mentioned actions without the prior written consent of the Bank
          thereto;

     G.   Not to sell, transfer, let, rent or deliver, not to remove from its
          possession, not to relinquish or waive, in full or in part, any asset,
          suit or right held by the Pledger or which shall, from time to time,
          be held, unless this relates to a transaction relating to the Floating
          Lien Assets or to assets not permanently liened to the Bank during the
          regular course of the Pledger's business and in return for full
          remuneration, or the lien of an asset undertaken in order to ensure
          credit/a financial undertaking serving to finance the acquisition of
          the asset, without the prior written consent of the Bank;

     H.   To inform the Bank immediately in any case of the imposition of an
          attachment in excess of NIS 200,000 on the Liened Property, to inform
          the attaching party immediately of the lien in the Bank's favor, and
          to take immediately and at its own expense all steps to remove the
          attachment;

     I.   Not to lien and not to mortgage in any way or manner the Liened
          Property in equal, prior or subsequent rights to the rights of the
          Bank, and not to endorse any right held by the Pledger in the Liened
          Property without obtaining the prior written consent of the Bank
          thereto, with the exception of: (I) A floating first degree lien as
          stated in para. 2 above; (II) lien on monies due and/or which shall be
          due to the Pledger from a bank clearinghouse; (III) a specific first
          degree lien on 95 ordinary shares with a nominal value of NIS 1 each
          (95%) in Ituran Cellular Communications Ltd., held by the Pledger and
          a subsidiary thereof, and all the rights accruing from these shares;
          (IV) a specific first degree loan on 70,862 ordinary shares with a
          nominal value of NIS 1 each of the Pledger held by Ituran Cellular
          Communications Ltd., which liens were recorded in favor of Bank Leumi
          LeIsrael Ltd.;

     J.   To be liable vis-a-vis the Bank for any defect in the right of
          possession of the Pledger in the Liened Property and for the
          verification, validity and authenticity of all signatures,
          endorsements and details in the certificates, documents and securities
          delivered and/or that shall be delivered to the Bank by way of
          security;

     K.   To pay promptly in accordance with any law all the taxes and
          compulsory payments imposed on the Liened Property and/or on the
          income accruing therefrom, and to furnish the Bank, upon request, with
          all receipts for the said payments. If the Pledger failed to make the
          said payments promptly, the Bank shall be entitled to pay them at the
          Pledger's expense and to charge him for the payment thereof, with the
          addition of expenses and interest at the maximum rate. These payments
          are guaranteed by this indenture;

     L.   To maintain proper account ledgers and to permit the Bank or a
          representative on its behalf to examine the ledgers at any time. The
          Pledger undertakes to assist the Bank or its representatives and to
          furnish them, upon first request, with any balance sheet, financial
          statement, ledger booklet, card and/or file, film, books,
          documentation and other documents, as well as any information as it
          shall be requested, including explanations regarding the financial and
          operating state of the Pledger and/or its business;

     K.   Not to lend to holders of shares in the Pledger and not to pay to the
          holders of shares in the Pledger existing or future loans for so long
          as the Pledger has not paid to the Bank the payments due on account of
          the Guaranteed Sums, without the prior written consent of the Bank.

     L.   That no structural change shall occur regarding the Pledger, and no
          change in the control of the Pledger, without the prior written
          consent of the Bank;

     M.   Not to take any steps on account of the Guaranteed Sums impairing the
          ability of the Bank to realize this Indenture.

8.   The Pledger undertakes to inform the Bank immediately:

     A.   In any case of suit for any right on any security in the Bank's favor
          to which this indenture applies and/or any execution procedure and/or
          other steps to actualize the security as stated, provided that the
          amount of the suit/execution procedures/other steps are to be taken
          with regard to an amount in excess of at least NIS 200,000, and
          excluding suits accruing from the course of the Pledger's ordinary
          business;

     B.   Of any of the actions mentioned in para. 18 below;

     C.   Of the reduction of the value of any security given and/or which shall
          be given thereby;

     D.   Of any request filed for the liquidation of the Pledger's business
          and/or for the receivership thereof, and of any decision relating to a
          change in the structure of the Pledger or any intention so to do;

     E.   Of a change of address.

INSURANCE

9.   The Pledger hereby undertakes to maintain all the Liened Property at any
     time guaranteed at their full value against the usual risks as the Bank
     shall present from time to time, with insurance companies and on such
     conditions to which the Bank shall consent, and to transfer to the Bank,
     within the limit of the Guaranteed Sums, the rights accruing from the
     certificates of insurance in accordance with the formula approved by the
     Bank, to pay all the insurance fees promptly and to deliver to the Bank all
     the insurance certificates and receipts on account of the payment of the
     insurance fees.

10.  Without derogating from the above, and in addition thereto, the Pledger
     hereby undertakes to issue the following instructions to the insurance
     company through which it insures the Liened Property:

     A.   The irrevocable stipulation of the Bank as the beneficiary in
          accordance with the insurance contract (the insurance policy), and an
          instruction to include the Bank in the body of the insurance contract,
          without the Bank's being liable for payment of any premiums;

     B.   Payment of insurance benefits directly to the Bank for the Liened
          Property at any time that the insurance company shall be liable to
          payment of these benefits in accordance with the insurance company, or
          in accordance with any law.

     C.   Furnishing a copy of the insurance contract to the bank after its
          inclusion as a beneficiary as stated above.

          All the above without the need for any additional authorization on
          behalf of the Pledger and/or those acting on its behalf and/or in its
          place.

          It is hereby agreed by the Pledger that the Bank shall be entitled to
          forward a copy of the insurance contract furnished by the Pledger, as
          stated above, to any professional entity (including such entity that
          is external to the Bank) at the Bank's discretion, for the purpose of
          inspecting the insurance contract and the provisions included therein.

          The Pledger declares that it waives the Bank's obligation of
          confidentiality toward it (if any), and undertakes not to make any
          claim, request and/or suit vis-a-vis the Bank and/or any person on its
          behalf in any matter relating to the forwarding of the insurance
          contract to a professional entity and the inspection thereof as stated
          above.

          The Pledger further undertakes to furnish the Bank with authorization
          from the insurance company and with an undertaking on its behalf not
          to offset any amount from the insurance benefits paid to the Bank on
          account of the Liened Property, with the exception of the balance of
          the insurance premium not yet paid on account of the insurance of the
          Liened Property for the current insurance year only, and, if the
          insurance policy also applies to other assets, in addition to the
          Liened Property, the authorization shall include the consent of the
          insurance company to attribute the premium payments received in
          connection with Liened Property, and to act in accordance with the
          above instructions and to inform the Bank in any case of the
          cancellation or expiry of the insurance contract, at least 30 (thirty)
          days prior to the said cancellation or expiry - this notwithstanding
          and despite any other provision in the Insurance

          Contract Law, 5741-1981, and notification as stated shall constitute a
          prior condition for the cancellation or expiry of the insurance
          contract.

11.  Without derogating from the Bank's rights in accordance with this
     indenture, including the Bank's rights in accordance with para. 18 below,
     in any of the cases stipulated below, the Bank shall be entitled, at its
     sole discretion, to insure the Liened Property in the Pledger's name or in
     the Bank's name and to charge the Pledger for expenses and insurance fees:

     A.   If the Liened Property is not insured by the Pledger to the Bank's
          satisfaction;

     B.   If the Pledger fails to furnish the Bank, within 10 days from the
          signing of this indenture, with insurance certificates on account of
          the Liened Property on conditions and for such period to the exclusive
          satisfaction of the Bank;

     C.   If, 30 days prior to the expiry of the validity of insurance in the
          Liened Property, the Pledger fails to furnish the Bank with insurance
          certificates for the Liened Property on conditions and for such period
          to the exclusive satisfaction of the Bank;

     D.   If the Bank requests the execution of additions, deletions and/or
          amendments of any kind in the insurance contract, and these, or any
          thereof, are not implemented within 10 days from the date of request
          to the full satisfaction of the Bank.

          In the event that the insurance is executed by the Bank as stated
          above, the Bank shall not be liable for any defect or fault that shall
          emerge in connection with the insurance. Amounts paid as expenses and
          as insurance fees as stated above are guaranteed in this indenture.

12.  With regard to the insurance of the Liened Property, the Pledger hereby
     appoints the Bank as its sole representative and grants it exclusive rights
     to pursue, in the Pledger's name, negotiations, to submit claims, to agree
     to arrangements, to compromise, to waive, to receive monies from the
     insurance companies and to credit these to the settlement of the Guaranteed
     Sums. The above-mentioned power of attorney is irrevocable since the rights
     of the Bank and of a third party are dependent thereon.

     The Pledger shall not have any claims regarding the arrangements, waivers
     and compromises reached by the Bank with the insurance companies.

13.  All of the Pledger's rights accruing from the insurance of the Liened
     Property, including rights in accordance with the Property Tax and
     Compensations Fund Law, 5721-1961, as this shall apply at any time, and in
     accordance with any other law, whether these rights were transferred to the
     Bank as stated or not, are hereby liened to the Bank by way of a permanent
     first degree lien and mortgage.

14.  The Pledger hereby undertakes to sign, upon the first request of the Bank,
     all certificates and documents required for the execution of its
     undertakings in accordance with this section. The Pledger further
     undertakes not to cancel and/or change in any manner any condition or
     conditions of the above-mentioned conditions of insurance without the prior
     written consent of the Bank.

INTEREST

15.  A.   The Bank shall be entitled to calculate interest on the Guaranteed
          Sums at such rate as is and/or shall be agreed from time to time
          between itself and the Pledger. In cases in which no interest rate is
          agreed, the Bank is entitled to determine interest at a rate not
          exceeding the maximum rate interest, and to inform the Pledger
          thereof. The Pledger shall be charged in accordance with the
          above-mentioned interest rate, and the Bank is entitled to add the
          interest amounts to the capital at the end of each month, or at the
          end of each other period as established by the Bank;

     B.   In any case of arrears in the payment of the Guaranteed Sums, or of
          part thereof, the Guaranteed Sums shall bear arrears interest in the
          rate agreed in the agreement for the provision of Banking Services. In
          the absence of stipulation of arrears interest, the Guaranteed Sums
          shall bear interest at the maximum rate.

     C.   In any case entitling the Bank to realize the securities in accordance
          with this indenture, the Bank shall be entitled to raise the interest
          rates on the Guaranteed Sums to the maximum interest rate.

DATES OF PAYMENT

16.  The Pledger hereby undertakes to pay the Bank the Guaranteed Sums and any
     part thereof precisely on the dates of payment as are and shall be
     determined from time to time.

17.  A.   The Bank is entitled not to accept the prior payment of the Guaranteed
          Sums or of any part thereof before the date of payment thereof, and
          the Pledger shall not be entitled to redeem any or all of the Liened
          Property through payment of the Guaranteed Sums and/or any part
          thereof prior to the date of payment therefore, unless otherwise
          agreed in writing in the credit agreements.

          The Pledger and any person whose right is liable to be impaired by the
          issuing of this indenture, or by the realization thereof, shall not
          have a right in accordance with Article 13(B) of the Mortgaging Law,
          5727-1967, or any legal provision coming in its place;

     B.   Subject to the provisions of any law, if the Bank consents to prior
          payment on account of the Guaranteed Sums (without its being obliged
          to do so), the Pledger shall pay the prior repayment commission as
          informed by the Bank, unless otherwise agreed in writing with the Bank
          in the credit documents, if at all.

18.  Without derogating from the generality of the provisions of this indenture,
     the Bank shall be entitled, in any of the cases stipulated below, to
     present any or all of the Guaranteed Sums for immediate repayment, and to
     charge in the above-mentioned amount any account of the Pledger with the
     Bank, and the Pledger undertakes to pay all the Guaranteed Sums, while the
     Bank shall be entitled to

     take all steps it shall see fit for the collection of the Guaranteed Sums
     and, in particular, to consolidate the floating lien on the Floating Lien
     Assets as stated in para. 24A below, and to realize the securities by any
     means permitted by law, at the Pledger's expense:

     A.   If the Pledger breaches or fails to observe any fundamental condition
          of the conditions of this indenture, or if the Pledger breaches other
          fundamental undertakings made and/or which shall be made by the
          Pledger to the Bank, and/or if it emerges that any of the Pledger's
          declarations in this indenture and/or any other declaration
          given/which shall be given to the Bank by the Pledger in connection
          with the Guaranteed Sums is incorrect or imprecise. It is clarified
          that the breach of a condition that is not fundamental, or the breach
          of an undertaking that is not fundamental, shall be considered as
          fundamental if, after written request by the Bank to remedy the
          breach, this shall not be remedied by the Pledger 30 days after the
          date of the Bank's request;

     B.   If the Pledger takes a decision regarding the change of the structure
          of the Pledger, or any intent to do so, whether as a company that
          acquires, transfers or divides, or a voluntary liquidation decision,
          or if a liquidation order is issued against it, or if a temporary
          liquidator or special director is appointed for the Pledger, or if the
          Pledger's name is deleted from any registry maintained by law, or is
          due for deletion;

     C.   If a receiver is appointed or if a receivership order is issued for
          the Pledger's assets or for a substantive part thereof. If a receiver
          is appointed as stated, or if a receivership order is issued as
          stated, ex parte, the content of this paragraph shall not apply if the
          appointment or order as stated are cancelled within 30 days from the
          date of their issue;

     D.   If an attachment is imposed or if a similar execution action is taken
          against a substantive portion of the Pledger's assets, and/or against
          any of the securities furnished and/or which shall be furnished by the
          Pledger, and these are not removed within 60 days from the date of
          their issue;

     E.   If the Bank shall consider, at its sole discretion, that a change has
          occurred in the control of the Pledger relative to the situation as of
          the date of

          signing this indenture, and the prior written consent of the Bank was
          not given therefore;

     F.   If the Pledger has ceased to pay its debts and/or to pursue its
          business;

     G.   If work, or a substantive part thereof, shall be halted in the Pledger
          for the duration of two months or more;

     H.   If the Bank shall consider, at its sole discretion, that an event
          occurred that may substantively impair the Pledger's financial
          capability;

     I.   If the Pledger shall be in arrears in payment of any of the Guaranteed
          Sums for a period in excess of 7 days;

     J.   If the Liened Property, or a substantive part thereof, shall be
          destroyed, burned, reduced in value or lost;

     K.   Cancelled;

     L.   Cancelled;

     M.   If, at the Bank's sole discretion and in accordance with its exclusive
          evaluation, a substantive change for the worse shall occur in the
          value of the securities granted and/or which shall be granted for the
          securing of repayment of the Guaranteed Sums;

     N.   If the Pledger is required to repay ahead of schedule debts owed
          and/or which shall be owed by the Pledger to other creditors;

     O.   Cancelled;

     P.   If the Pledger breaches its undertaking to furnish the Bank with
          balance sheets, financial statements, account ledgers and other
          documentation relating to the state of its business;

THE BANK'S RIGHTS

19.  A.   The Bank has rights of possession, lien, offsetting and lien on all
          amounts, assets and rights, including securities, coins, gold, money
          bills, documents of merchandise, insurance policies, certificates,
          endorsements of charges, deposits, securities and

          the remuneration therefore held in the Bank's possession or control at
          any time in favor and/or on behalf of the Pledger, including such
          delivered for collection, security, deposit or otherwise. The Bank is
          entitled to withhold the above-mentioned assets pending the full
          settlement of all or part of the Guaranteed Sums, or to sell them and
          use any or all of the remuneration for the settlement of the
          Guaranteed Sums. In the event that the offset amounts are deposited in
          a currency different from that in which the Guaranteed Sums are
          stated, the Pledger hereby instructs the Bank in advance to sell the
          balance of the right in the other currency at such rate as shall be
          determined by the Bank or as shall be secured by the Bank therefore at
          that time, and to credit the remuneration for the sale, after
          deduction of the appropriate expenses and commissions, against the
          Guaranteed Sums.

     B.   Without derogating from the Bank's right of lien, as stated in para.
          19A above, the Bank shall be entitled at any time:

          (1)  To offset any amount from the Guaranteed Sums due from the ledger
               against amounts due to the Pledger from the Bank in any account
               in Israeli currency or in foreign currency, in any manner, even
               prior to the date of payment of amounts due to the Pledger from
               the Bank as stated and against which offsetting shall be made,
               but, in offsetting against deposits in saving plans, not prior to
               the date on which the Pledger would have been entitled to request
               the early repayment of the deposits.

          (2)  To purchase for the Pledger's account any amount in foreign
               currency required for the settlement of any amount of the
               Guaranteed Amounts, or to sell any foreign currency available to
               the Bank in the Pledger's favor, and to use the remuneration from
               the sale for the purpose of the settlement of any of the
               Guaranteed Sums.

          (3)  To charge any account of the Pledger with any of the Guaranteed
               Sums. However, if the state of such an account does not permit
               its charging by the Bank for the purpose of the final payment of
               any amount, the Bank shall be entitled not to charge the account
               and, if it does so, the Bank shall be entitled to cancel any
               charge as stated and to regard any amount whose charge was
               cancelled as an amount not paid on account of the Guaranteed Sums
               and, accordingly, to take any action as it shall see fit in
               accordance with this indenture.

          (4)  In any case in which any of the sub-paragraphs of para. 18 above
               shall apply, the Bank shall be entitled to offset without any
               prior notification. In the following cases, however, the Bank
               shall be entitled to offset with prior notification to the
               Pledger 10 (ten) days prior to the date of execution of the
               offsetting:

               (A)  In the event of the offsetting of sums the date of payment
                    of which has not yet arrived.

               (B)  In the event of offsetting from a permanent deposit which,
                    were it not for the offsetting, would be extended or renewed
                    automatically, such that rights or benefits would accrue to
                    the Pledger therefrom.

               (C)  Notwithstanding the contents of para. 4(A) above, if the
                    postponement in the execution of offsetting is liable to
                    damage the position of the Bank or to impair any of its
                    rights, the Bank shall be entitled to undertake the
                    offsetting immediately. In addition, in the event that
                    notification was sent to the Pledger and, within ten days
                    from the notification, an attachment order, notification of
                    receivership on the Pledger's assets or similar event
                    occurs, the Bank shall be entitled to execute the offsetting
                    immediately.

     C.   The Pledger hereby declares that it is aware that, in cases in which
          the Bank exercises the rights of offsetting as stated above prior to
          the date of

          payment of any or all of a deposit of the Pledger, changes are liable
          to occur to the Pledger's detriment with regard to the Pledger's
          rights on account of or in connection with that deposit (such as
          regarding interest rates, linkage increments, exchange rate
          discrepancies, rights to grants or loans, exemption or reduction in
          income tax and deductions at source - if in accordance with the
          conditions of that deposit the Pledger enjoyed such above-mentioned
          rights). The Pledger shall bear all expenses and payments current at
          that time in the Bank for the purpose of executing such an action.

     D.   Any purchase or sale as stated in para. 19B(2) above shall be made in
          accordance with the accepted rate at the Bank, from amounts in Israeli
          currency or from amounts in foreign currency, as the case may be,
          available to the Bank in the Pledger's favor or received for the
          realization of any securities granted and/or which shall be granted to
          the Bank by the Pledger.

          The term "the accepted rate at the Bank" means - regarding each
          purchase of foreign currency for the Pledger's account - the highest
          rate for transfers and checks current at the Bank at the relevant time
          for the sale to its customers of the relevant foreign currency in
          return for Israeli currency, with the addition of exchange commission
          and any tax, levy, compulsory payments and/or other such payments,
          and, regarding each sale of foreign currency from the Pledger's
          account - the lowest rate for transfers and checks current at the Bank
          at the relevant time for the purchase from its customers of the
          relevant foreign currency in return for Israeli currency, less
          exchange commission and any tax, levy, compulsory payments and/or
          other such payments.

20.  The Bank is entitled at any time to charge any account of the Pledger with
     any amount due and which shall be due therefrom in any manner, and to
     credit any amount received therefrom or on behalf thereof in favor of such
     account as it shall see fit, and to transfer any amount available in favor
     thereof to any other account as it shall see fit; this whether this account
     is in the Pledger's name alone, or together with another, whether in
     Israeli currency or foreign currency,

     and whether it exists at the time of signing this indenture or is opened in
     the future.

21.  The Pledger confirms that the Bank's ledgers and accounts are acceptable to
     him, shall be considered correct and shall constitute a priori evidence
     against him in all their details, and, inter alia, in all matters regarding
     the calculation of the Guaranteed Sums, the details of the certificates,
     guarantees and other securities, and any other matter relating to this
     indenture.

22.  The Bank shall be entitled, at its sole discretion, to accept or to refuse
     to accept any instructions or notices delivered by word of mouth, telephone
     or facsimile, or by any other manner that is not reliable and/or not in
     clear and legible writing. In the event that the Bank agrees to act in
     accordance with the Pledger's instructions not by means of written
     instruction in the accepted manner, the Ledger accepts full liability for
     any error, misunderstanding or contradiction, and for any damage and/or
     loss and/or expense incurred pursuant to the delivery of the
     above-mentioned instructions.

23.  Without derogating from the other provisions of this indenture, any waiver,
     extension, deduction, silence, refraining from an action (hereinafter -
     waiver) on the part of the Bank regarding the non-observance or the partial
     or incorrect observance of any of the Pledger's undertakings in accordance
     with this indenture shall not be considered as a waiver on the part of the
     Bank of any right, but as a limited agreement for the special occasion for
     which it was granted. Any waiver granted by the Bank to any party in a
     certificate held by the Bank to secure the Guaranteed Sums shall not in any
     manner or way influence the Pledger's undertakings.

24.  A.   In any of the cases detailed in para. 18 above, the Bank shall be
          entitled to notify the Pledger of the consolidation, immediately or on
          the date stated by the Bank, of the floating lien of the Liened
          Property or of any part thereof, to use all means it shall see fit in
          order to collect the Guaranteed Sums, and to realize all its rights in
          accordance with this indenture, including the realization of the
          Liened Property, in full or in part, and to use its realization to
          remove the Guaranteed Sums,

          without the Bank's being required first to realize guarantees or other
          securities held by the Bank, if any;

     B.   In the event that the Bank decides to realize securities, certificates
          and other negotiable documents - notification of three days in advance
          regarding the steps to be taken by the Bank shall be considered a
          reasonable date for the purpose of Article 19(B) of the Mortgage Law,
          5727-1967, or for the purpose of any legal provision coming in its
          stead;

     C.   The Bank is entitled, as the Pledger's representative, and, for the
          purpose of this paragraph, the Pledger appoints the Bank irrevocably
          as its representative, to sell the Liened Property, and any part
          thereof, by auction or otherwise, by itself or by others, in cash or
          in installments or otherwise, at a price and on conditions at the
          Bank's absolute discretion, and the Bank is further entitled, by
          itself or through the court or through the executor's office, to
          realize the Liened Property or any other assets, inter alia by means
          of the appointment of a receiver or a receiver and director on behalf
          of the Bank who, among his other authorities, shall be entitled:

          1)   To receive in his possession all or part of the Liened Property.

          2)   To manage the Pledger's business or to participate in the
               management thereof as he see fit.

          3)   To sell or to agree to sell the Liened Property, in full or in
               part, to transfer or to agree to transfer the said assets by any
               other manner in accordance with such conditions as he shall see
               fit.

          4)   To undertake any other arrangement regarding the Liened Property
               or any part thereof as he shall see fit.

     D.   All income received by the receiver or the receiver and director from
          the Liened Property, as well as any remuneration received by the Bank
          and/or by the receiver or the receiver and director from the sale of
          the Liened Property or part thereof shall be credited in the following
          order:

          1)   Settlement of all expenses incurred and which shall be incurred
               in relation to the collection of the Guaranteed Sums, including
               the expenses of the receiver or of the receiver and director, and
               his salary in such amount as shall be determined by the Bank, or
               as shall be approved by the court or the executor's office.

          2)   Settlement of the Guaranteed Sums due to the Bank pursuant to the
               conditions of linkage, interest, damage fees, commissions and
               expenses due and which shall be due to the Bank in accordance
               with this indenture.

          3)   Settlement of the capital of the Guaranteed Sums.

          Or in any other order of crediting as shall be determined by the Bank.

25.  In the event that, at the time of the sale of the Liened Property, the date
     of repayment of the Guaranteed Sums, or of any thereof, has not yet
     arrived, or the Liened Sums or any thereof are received by the Bank
     conditionally, the Bank shall be entitled to collect from the receipts of
     the sale a sum sufficient to cover the Liened Sums, and the amount
     collected and not yet credited to the settlement of the said sums in para.
     24D above shall be liened to the Bank to secure the Liened Sums and shall
     be held by the Bank pending settlement thereof.

SUBSTANCE OF THE SECURITIES

26.  The securities granted and/or which shall be granted to the Bank in
     accordance with this indenture have a constant character and shall remain
     valid pending written confirmation by the Bank that this indenture is
     nullified.

27.  If other securities and/or guarantees have been or shall be given to the
     Bank for the repayment of the Liened Sums, all securities and guarantees
     shall be mutually independent.

28.  If the Bank compromises or grants an extension or leniency to the Pledger,
     the Bank changes any of the Pledger's undertakings regarding the Liened
     Sums, releases or waives other securities or guarantees - these actions
     shall not alter the substance of the securities to which this indenture
     applies, and all the

     securities and guarantees of the Pledger to which this indenture applies
     shall continue to be fully valid.

29.  The Bank is entitled to deposit the securities delivered and/or which shall
     be delivered in accordance with this indenture, or part thereof, with such
     guard determined thereby, at its sole discretion, and at the Pledger's
     expense, and to replace this guard from time to time; the Bank shall
     further be entitled to register the above-mentioned securities, in whole or
     in part, with any empowered authority in accordance with any law, and/or at
     any public registry.

RIGHT OF TRANSFER

20.  The Bank is entitled at any time, at its sole discretion, without requiring
     the Pledger's consent, to transfer this indenture and the rights in
     accordance therewith, including the securities, to another, in part or in
     full, and any recipient of the transfer shall also be entitled to transfer
     the above-mentioned rights to another without requiring additional consent
     from the Pledger. The transfer may be undertaken by the endorsement in the
     margins or on the face of this indenture or by any other manner as the Bank
     and the recipient of the transfer shall see fit.

NOTIFICATION OF RESERVATION

31.  The Pledger undertakes to notify the Bank in writing of any reservation or
     objection it has, if any, relating to any account, summarized account,
     authorization or notification of any kind received by the Bank, including
     the receipt of information through the computerized information station. If
     the Pledger does not state its reservation or objection within 21 days from
     the date of dispatch of the above-mentioned account, the summarized
     account, the authorization or notification, the Bank shall be entitled to
     consider it as confirming the veracity thereof.

EXPENSES

32.  Without derogating from the Bank's rights as detailed in this indenture,
     all expenses and commissions relating to this indenture (as detailed in the
     Bank's tariffs, as these shall apply from time to time) shall be paid by
     the Pledger upon first written request by the Bank (unless they were paid
     in practice by the guarantee, when this indenture is made to secure the
     liability of the guarantee), with the addition of interest at the maximum
     rate from the date of request and through full and actual payment.

     Said expenses and commissions include, inter alia (and without derogating
     from the generality of the above) security processing fees, stamp duty and
     fees for the registration of documents, expenses for realizing the
     securities and for collection proceedings (including the Bank's attorneys'
     fees), insurance, security, maintenance and repair of the Liened Property.

     All the above-mentioned expenses and commissions, with the addition of the
     interest thereon in accordance with para. 15 of this indenture, shall be
     secured by this indenture pending their full and actual settlement.

THE PLEDGER'S LIABILITY

33.  A.   Cancelled.

     B.   In the event that the Pledger and/or the guarantee constitute a legal
          entity, incorporated or not incorporated, or a trustee, or the manager
          of an estate or the owner of a joint account at the Bank, or an
          organization or body that constitutes a collection of bodies, the
          Pledger's undertakings in accordance with this indenture shall not be
          impaired by any change in the name, structure or composition of the
          Pledger or of the guarantee.

INTERPRETATIONS

34.  In this indenture - (A) The singular includes the plural, and vice versa;
     (B) The masculine includes the feminine, and vice versa; (C) "The Bank"
     means - Bank Hapoalim Ltd. and each of its branches existing as of the date
     of this indenture and/or which shall open in any location in the future,
     its transferees and

     alternates and those acting for the Bank; (D) "Certificates" means
     indentures, certificates of exchange, checks, undertakings, guarantees,
     securities, endorsements, bills of lading, certificates of deposit and all
     other negotiable documents; (E) "Interest at the maximum rate" means
     interest at the maximum rate current at the Bank at the time, and from time
     to time, regarding deviations and arrears in debit accounts or checking
     accounts, whichever is the higher; (F) "Change of structure" means,
     regarding the Pledger - merger or division (as these terms are understood
     in Part E2 of the Income Tax Ordinance (Revised) or any other legal
     provision coming in its place), as well as the transfer of assets in return
     for shares, all whether in accordance with the above-mentioned Part E2 or
     otherwise; (G) In any case in which, according to this indenture, the Bank
     is entitled to perform any action, it is not obliged to do so; (H) In any
     case in which the Bank is granted the right to charge any of the Pledger's
     accounts, the Bank is entitled to charge that account whether it is in
     credit or debit, including if the debit will be credited as a result of the
     charging of the account by the Bank as stated; (I) The titles of the
     paragraphs are for use as a reference only, and are not to be used in
     interpreting this indenture; (J) The preamble to this indenture constitutes
     an integral part thereof.

NOTICES AND WARNINGS

35.  Any notice sent by the Bank by mail to the Pledger, by registered or
     ordinary letter, in accordance with the address recorded above, or in
     accordance with the address of the Pledger's registered office, or in
     accordance with another address as notified by the Pledger in writing to
     the Bank, shall be considered legal notification received by the Pledger
     within 72 hours from the time of the dispatch of the letter including the
     notification. Any notification given to the Pledger by any other means
     shall be considered to have been received thereby at the time of its
     granting or at the time of its publication.

SUBSTANTIVE LAW AND PLACE OF JURISDICTION

36.  A.   This indenture shall be interpreted in accordance with and according
          to the laws of the State of Israel.

     B.   The sole place of jurisdiction for the purpose of this indenture is
          hereby established as follows:

          The closest empowered court to the place of signing of this indenture
          or the empowered court in one of the following cities: Jerusalem, Tel
          Aviv - Jaffa, Haifa, Beersheva or Nazareth.

                      WITNESSED BY THE PLEDGER'S SIGNATURE

                                  /s/ Illegible
                        ITURAN LOCATION AND CONTROL LTD.

ATTORNEY'S CONFIRMATION

I, the undersigned, Guy Aharonov, advocate, serving as the legal advisor of
Ituran Location and Control Ltd., hereby confirm that the company's signatories,
Messrs. Issy Shiratzky and Eli Kamar signed the above document before me, and
that their signatures bind the company.

                               /s/ Guy Aharonov

                               Attorney

                               Signature and Stamp
                          Guy Aharonov, legal advisor
                        Ituran Location and Control Ltd.

                                                        Date:

To:

Bank Hapoalim Ltd.

                     RE: DECISION OF THE BOARD OF DIRECTORS

As you requested, I hereby confirm that, at a meeting of the Board of Directors
of Ituran Location and Control Ltd. convened lawfully and held on January 29,
2002 by means of facsimile, the Board of Directors decided as follows:

     A)   As security for payment of credits received and/or which shall be
          received by the Company from Bank Hapoalim Ltd. (hereinafter - "the
          Bank"), to create in favor of the Bank and in favor of Bank Leumi
          LeIsrael Ltd. a floating first degree lien on all the Company's
          property and assets.

     B)   To empower the representative of the directors, Messrs. Izzy Sheratzky
          and Eli Kamer, to sign all documents relating to the above-mentioned
          lien in the Company's name.

                                       Sincerely,

                                           /s/ Illegible
                                       Ituran Location and Control Ltd.

ATTORNEY'S CONFIRMATION

I, the undersigned, Guy Aharonov, advocate,

Confirm that the above-mentioned decision was taken lawfully and in accordance
with the Company's documents.

                               /s/ Guy Aharonov, Legal Adviser

                               Signature and Stamp

Ministry of Justice

Registrar of Companies

POB 28178

Jerusalem 91281

                         DETAILS OF MORTGAGES AND LIENS

          (Article 178 of the Companies Ordinance (Revised), 5743-1983)
<TABLE>

-----------------------------------------------------------------------------------------------------
NAME OF BORROWING COMPANY                                            COMPANY NO.               CODE
-------------------------------------------------------------------- ------------------------- ------
ITURAN LOCATION AND CONTROL LTD.                                       I      SER.NO.     SN    81
                                                                     ----- ------------ ------ ------
                                                                       52     004381      1
-----------------------------------------------------------------------------------------------------
GUARANTEED AMOUNT IN WORDS                GRT. AMT.   CURRENCY       CURRENCY       DATE OF
NO LIMIT ON AMOUNT                                    CODE           TYPE           CREATION
                                        ------------- -------------- -------------- -----------------
                                          NIS   AG.
-----------------------------------------------------------------------------------------------------
CODE                                 DESCRIPTION OF            STAMP DUTY
                                     DOCUMENT
                                     -------------------------
                                     INDENTURE
-----------------------------------------------------------------------------------------------------
DETAILS OF LENDERS
-----------------------------------------------------------------------------------------------------
ID NO.                               DETAILS OF LOANER         AMOUNT OF LOAN
52-000011-8                          BANK HAPOALIM LTD.
-----------------------------------------------------------------------------------------------------
DETAILS OF LIENED ASSETS

                                    DESCRIPTION OF THE LIENED ASSETS

Floating first degree lien of ALL the property and assets of the Company and the insurance rights on
account thereof.

SPECIAL CONDITIONS
------------------------- ---------- --------------------------------- ------------------------------
IF A RESTRICTION          YES        DATE OF  DECISION                 DATE SERIES ISSUED
APPLIES ON THE CREATION
OF AN ADDITIONAL LIEN,
MARK Y
------------------------- ---------- --------------------------------- ------------------------------
REGISTRATION OF NOTICE AS STATED IN REGULATION 12(B) OF THE COMPANIES REGULATIONS (REPORTING,
REGISTRATION DETAILS AND FORMS), 5760-1999               NO
-----------------------------------------------------------------------------------------------------
NOTE REGARDING PROHIBITION OR RESTRICTION ON THE CREATION OF ADDITIONAL LIENS AND SPECIAL CONDITIONS

THE LIEN COMPANY HAS UNDERTAKEN NOT TO TRANSFER AND/OR TO MORTGAGE THE LIENED PROPERTY AND ASSETS OR
ANY PART THEREOF TO OTHERS WITHOUT THE CONSENT OF THE OWNER OF THE LIEN.
-----------------------------------------------------------------------------------------------------

I HEREBY DECLARE THAT THE DETAILS APPEARING ON THIS FORM ARE CORRECT AND COMPLETE, AND THAT I AM AN
OFFICIAL IN THE COMPANY AS STATED IN ARTICLE 39 OF THE LAW.

/s/ Izzy Sheratsky       007495443       CHAIRMAN OF THE BOARD      FEB. 5, 2002   /s/ Izzy Sheratsky
------------------       ---------       ---------------------      ------------   ------------------
NAME OF SIGNATORY       IDENTITY NO.      POSITION IN COMPANY           DATE           SIGNATURE

I HEREBY DECLARE THAT THE DETAILS APPEARING ON THIS FORM ARE CORRECT AND COMPLETE

NAME OF SIGNATORY      IDENTITY NO.          TITLE               DATE
</TABLE>

                                                        Date:

To:

BANK HAPOALIM LTD.

Dear Sir,

                                 Re: UNDERTAKING

Whereas we have and/or are due to receive from you credits and other banking
services, and we have and/or shall sign undertakings and guarantees to secure
the debts and undertakings of other bodies toward you (hereinafter - "the
Credit");

1.   Accordingly, we hereby undertake toward you that, as of the date of this
     letter and for so long as we have not repaid the credit to you, we
     undertake to maintain financial relations as detailed in our financial
     statements as detailed below:

     EBITDA (in annual terms) will not be less than $ 10,000,000 (ten million US
     dollars).

     The above-mentioned terms shall be interpreted in accordance with the
     standard accounting rules.

2.   We undertake to furnish you each quarter with full data as required by you
     relating to our assets, profits, sales and relating to all our other
     undertakings in the banking system, as well as quarterly and annual
     financial statements as we are obliged to publish in accordance with The
     Securities Law, 5728-1968, immediately on publication thereof.

3.   We are aware that if we breach our above-mentioned undertakings, you shall
     be entitled to take all steps as you shall see fit against us, including
     the presentation of all our debts and undertakings toward you for immediate
     repayment, this in addition to any remedy and/or other relief to which you
     are entitled in accordance with the various documents we have and/or shall
     sign in your favor.

4.   These undertakings are irrevocable and we shall not be entitled to cancel
     and/or amend them without receiving your prior and written consent thereto.

5.   The above shall not derogate from, but shall add to our remaining
     undertakings toward you in accordance with the various documents we have
     and/or shall sign in your favor.

                                  /s/ Illegible
                                  -------------
                        ITURAN LOCATION AND CONTROL LTD.

ATTORNEY'S CONFIRMATION

I, the undersigned, Guy Aharonov, advocate, serving as the legal advisor of
Ituran Location and Control Ltd., hereby confirm that the company's signatories,
Messrs. Issy Shiratzky and Eli Kamar signed the above document before me, and
that their signatures bind the company.

                              /s/ Guy Aharonov

                                    Attorney

                               Signature and Stamp

                               Guy Aharonov, Legal Adviser
                               Ituran Location and Control Ltd.

<TABLE>

=========================== =============== ======================================== ====================
Dudi Ezra                       59809939    24 Beeri St., Kochav Yair                26/7/98
--------------------------- --------------- ---------------------------------------- --------------------
Yoav Cohen                     017054313    3 Arvei Nachal St., Givatayim            1/6/98
--------------------------- --------------- ---------------------------------------- --------------------
Rafael Luxenburg                04344040    87 King David St., Herzliya              1/6/98
--------------------------- --------------- ---------------------------------------- --------------------
Gideon Kotler                   08630998    1 Bavli St., Tel Aviv                    1/6/98
--------------------------- --------------- ---------------------------------------- --------------------
</TABLE>

<TABLE>

---------------------------------------------------------------------------------------------------------
CHANGES TO THE CONSTITUTION
------------------------ --------------------- -------------------------------------------- -------------
Date of Decision         Date of Registration  Summary of Decision                          Court
                                                                                            Order
                                                                                            No.
------------------------ --------------------- -------------------------------------------- -------------
March 10, 1994           March 18, 1994        Change of name of company
------------------------ --------------------- -------------------------------------------- -------------
June 27, 1995            Feb. 7, 1995          Change of name of company
------------------------ --------------------- -------------------------------------------- -------------
June 27, 1995            July 2, 1995          Change of name of company
------------------------ --------------------- -------------------------------------------- -------------
Oct. 30, 1995            Dec. 18, 1995         Amendment of Articles of Association
------------------------ --------------------- -------------------------------------------- -------------
Nov. 14, 1995            Jan. 23, 1996         Change of goals of company
------------------------ --------------------- -------------------------------------------- -------------
May 12, 1998             May 17, 1998          Replacement of Articles of Association
------------------------ --------------------- -------------------------------------------- -------------
May 12, 1998             May 17, 1998          Increase of capital by NIS 6 million
------------------------ --------------------- -------------------------------------------- -------------
May 12, 1998             May 17, 1998          Change of private co. to public co.
------------------------ --------------------- -------------------------------------------- -------------
March 1, 2000            March 14, 2000        Increase of capital
------------------------ --------------------- -------------------------------------------- -------------
</TABLE>

<TABLE>

---------------------------------------------------------------------------------------------------------
PREVIOUS NAMES
---------------------------------------------------------------------------------------------------------
PREVIOUS NAME                        ENGLISH NAME                       CHANGE OF NAME - DATE
------------------------------------ ---------------------------------- ---------------------------------
                                     Eturan - Tadiran Location and      March 18, 1994
                                     Control Ltd.
------------------------------------ ---------------------------------- ---------------------------------
                                     Ituran - Tadiran Location and      July 2, 1995
                                     Control Ltd.
------------------------------------ ---------------------------------- ---------------------------------
</TABLE>

<TABLE>

---------------------------------------------------------------------------------------------------------
DETAILS OF LEVIES DEBT
---------------------------------------------------------------------------------------------------------
The company does not have debts for the annual levy.
---------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>

------------------------------------------------------------------------------------------------------------------------
DETAILS OF LIENS
------------------------------------------------------------------------------------------------------------------------
LIEN NO. 1
---------------- ------------- -------------- ----------------- --------------------------- ------------- --------------
DATE             DATE          DATE           GUARANTEED        DESCRIPTION OF              LIENED        SPECIAL
CREATED          SETTLED       REGISTERED     AMOUNT            DOCUMENT                    ASSETS        CONDITIONS
---------------- ------------- -------------- ----------------- --------------------------- ------------- --------------
17/3/96          19/1/99                      No limit          Indenture
------------------------------------------------------------------------------------------------------------------------
LIEN NO. 2
---------------- ------------- -------------- ----------------- --------------------------- ------------- --------------
DATE             DATE          DATE           GUARANTEED        DESCRIPTION OF              LIENED        SPECIAL
CREATED          SETTLED       REGISTERED     AMOUNT            DOCUMENT                    ASSETS        CONDITIONS
---------------- ------------- -------------- ----------------- -------------------- -------------------- --------------
16/7/97          25/2/99                      No limit          Indenture
------------------------------------------------------------------------------------------------------------------------
LIEN NO. 3
---------------- ------------- -------------- ----------------- --------------------------- ------------- --------------
DATE             DATE          DATE           GUARANTEED        DESCRIPTION OF              LIENED        SPECIAL
CREATED          SETTLED       REGISTERED     AMOUNT            DOCUMENT                    ASSETS        CONDITIONS
---------------- ------------- -------------- ----------------- -------------------- -------------------- --------------
15/7/97          25/2/99                      No limit          Indenture
------------------------------------------------------------------------------------------------------------------------
LIEN NO. 4
---------------- ------------- -------------- ----------------- -------------------- -------------------- --------------
DATE             DATE          DATE           GUARANTEED        DESCRIPTION OF              LIENED        SPECIAL
CREATED          SETTLED       REGISTERED     AMOUNT            DOCUMENT                    ASSETS        CONDITIONS
---------------- ------------- -------------- ----------------- -------------------- -------------------- --------------
13/12/98         1/10/01                      No limit          Indenture            Fixed first degree   No lien or
                                                                                     lien and             transfer
                                                                                     endorsement of       w/out
                                                                                     rights to all        consent of
                                                                                     monies deposited     owners of
                                                                                     in deposit at        lien
                                                                                     Hamasger branch
                                                                                     and all 166 076686
                                                                                     rights
------------------------------------------------------------------------------------------------------------------------
LIEN NO. 5
---------------- ------------- -------------- ----------------- -------------------- -------------------- --------------
DATE             DATE          DATE           GUARANTEED        DESCRIPTION OF              LIENED        SPECIAL
CREATED          SETTLED       REGISTERED     AMOUNT            DOCUMENT                    ASSETS        CONDITIONS
---------------- ------------- -------------- ----------------- -------------------- -------------------- --------------
17/8/99                        1/9/99         No limit          Indenture            Fixed lien of all    No lien or
                                                                                     certificates as      transfer
                                                                                     defined in this      w/out
                                                                                     indenture            consent of
                                                                                     delivered to bank    owners of
                                                                                     by company.  First   lien
                                                                                     current lien all
                                                                                     certificates to
                                                                                     which company has
                                                                                     rights.
------------------------------------------------------------------------------------------------------------------------
LENDERS FOR LIEN NO. 5
---------------------------------------- ------------------------------------- -----------------------------------------
NAME OF LENDER                           AMOUNT OF LOAN                        ID
---------------------------------------- ------------------------------------- -----------------------------------------
Bank Leumi LeIsrael Ltd.                                                       520018078
------------------------------------------------------------------------------------------------------------------------
LIEN NO. 6
---------------- ------------- -------------- ----------------- -------------------- -------------------- --------------
DATE             DATE          DATE           GUARANTEED        DESCRIPTION OF              LIENED        SPECIAL
CREATED          SETTLED       REGISTERED     AMOUNT            DOCUMENT                    ASSETS        CONDITIONS
---------------- ------------- -------------- ----------------- -------------------- -------------------- --------------
8/12/99                        13/12/99       No limit          Indenture            Current and fixed    No lien or
                                                                                     first lien and       transfer
                                                                                     endorsement of       w/out
                                                                                     transfers checks     consent of
                                                                                     deposited at bank    owners of
                                                                                                          lien
------------------------------------------------------------------------------------------------------------------------
LENDERS FOR LIEN NO. 6
---------------------------------------- ------------------------------------- -----------------------------------------
NAME OF LENDER                           AMOUNT OF LOAN                        ID
---------------------------------------- ------------------------------------- -----------------------------------------
Bank Discount LeIsrael Ltd.                                                    520007030
------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>

------------------------------------------------------------------------------------------------------------------------
LIEN NO. 7
---------------- ------------- -------------- ----------------- -------------------- -------------------- --------------
DATE             DATE          DATE           GUARANTEED        DESCRIPTION OF              LIENED        SPECIAL
CREATED          SETTLED       REGISTERED     AMOUNT            DOCUMENT                    ASSETS        CONDITIONS
---------------- ------------- -------------- ----------------- -------------------- -------------------- --------------
15/2/00          6/4/00                                         Indenture            Fixed lien of        No lien or
                                                                                     1237800 ordinary     transfer
                                                                                     shares in Tadiran    w/out
                                                                                     Telematics Ltd.      consent of
                                                                                                          owners of
                                                                                                          lien
------------------------------------------------------------------------------------------------------------------------
LIEN NO. 8
---------------- ------------- -------------- ----------------- -------------------- -------------------- --------------
DATE             DATE          DATE           GUARANTEED        DESCRIPTION OF              LIENED        SPECIAL
CREATED          SETTLED       REGISTERED     AMOUNT            DOCUMENT                    ASSETS        CONDITIONS
---------------- ------------- -------------- ----------------- -------------------- -------------------- --------------
25/1/00                        12/7/00                          Indenture            Fixed lien on car    No lien or
                                                                                     reg. 18-484-42       transfer
                                                                                     Isuzu in             w/out
                                                                                     accordance with      consent of
                                                                                     rental contract      owners of
                                                                                     and on 18 deposits   lien
                                                                                     or monies
                                                                                     deposited with
                                                                                     company in
                                                                                     relation to
                                                                                     agreement
------------------------------------------------------------------------------------------------------------------------
LENDERS FOR LIEN NO. 8
---------------------------------------- ------------------------------------- -----------------------------------------
NAME OF LENDER                           AMOUNT OF LOAN                        ID
---------------------------------------- ------------------------------------- -----------------------------------------
Darel - Ram Ltd.                                                               511603201
------------------------------------------------------------------------------------------------------------------------
LIEN NO. 9
---------------- ------------- -------------- ----------------- -------------------- -------------------- --------------
DATE             DATE          DATE           GUARANTEED        DESCRIPTION OF              LIENED        SPECIAL
CREATED          SETTLED       REGISTERED     AMOUNT            DOCUMENT                    ASSETS        CONDITIONS
---------------- ------------- -------------- ----------------- -------------------- -------------------- --------------
19/8/01                        27/8/01                          Indenture            1666701 ordinary     No lien or
                                                                                     shares in            transfer
                                                                                     Loctiomat Systems    w/out
                                                                                     2000 incl. all       consent of
                                                                                     rights of all types  owners of
                                                                                                          lien
------------------------------------------------------------------------------------------------------------------------
LENDERS FOR LIEN NO. 9
---------------------------------------- ------------------------------------- -----------------------------------------
NAME OF LENDER                           AMOUNT OF LOAN                        ID
---------------------------------------- ------------------------------------- -----------------------------------------
Bank Hapoalim Ltd.                                                             520000118
------------------------------------------------------------------------------------------------------------------------
LIEN NO. 10
---------------- ------------- -------------- ----------------- -------------------- -------------------- --------------
DATE             DATE          DATE           GUARANTEED        DESCRIPTION OF              LIENED        SPECIAL
CREATED          SETTLED       REGISTERED     AMOUNT            DOCUMENT                    ASSETS        CONDITIONS
---------------- ------------- -------------- ----------------- -------------------- -------------------- --------------
19/8/01                        27/8/01                          Indenture            1237800 ordinary     No lien or
                                                                                     shares in Tadiran    transfer
                                                                                     Telematics Ltd.      w/out
                                                                                     inc rights of all    consent of
                                                                                     types                owners of
                                                                                                          lien
------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>

------------------------------------------------------------------------------------------------------------------------
LENDERS FOR LIEN NO. 10
---------------------------------------- ------------------------------------- -----------------------------------------
NAME OF LENDER                           AMOUNT OF LOAN                        ID
---------------------------------------- ------------------------------------- -----------------------------------------
Bank Hapoalim Ltd.                                                             520000118
---------------------------------------- ------------------------------------- -----------------------------------------
DATA ON ALL COMPANY LIENS
--------------------------- ------------------------- ------------------------- ----------------------------------------
TOTAL AMOUNT OF LIENS       NO. OF SETTLED LIENS      NO. OF UNLIMITED LIENS    NO. OF LEANS IN ADDITIONAL CURRENCIES
--------------------------- ------------------------- ------------------------- ----------------------------------------
                            5                         5
--------------------------- ------------------------- ------------------------- ----------------------------------------
</TABLE>

--------------------------------------------------------------------------------
This extract was produced from the information held in Kav Mancheh computer on
Jan. 17, 2002 at 16:40. The information relating to the company was last updated
in the database of the Registrar of Companies on January 9, 2002 at 06:34. The
information detailed above was taken from the computer of the Registrar of
Companies. The Registrar of Companies recently began to operate a new database;
slight irregularities may be possible in the data, we will appreciate your
updates; are not responsible for the veracity and updating of the data.
--------------------------------------------------------------------------------

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